Bank default valid dispute?

Sparky111

Hi all and thanks for reading,

I left the armed forces in March 2012 and the job lined up fell through, leaving me unable to service my Yorkshire bank O/D with a limit of £1250. It slowly increased in balance until it reaches £1359 in the November at which point they closed the account and passed it to their collections team. I finally got a job and contacted the collections team on 22/12/2012 offering to make payment at £30 per week starting 28/12/12 until the balance was clear and no further action would be taken against me if I held up my end (which I did). Thinking this was all sorted and in a much better place financially I pulled my credit file pre-mortgage application to find they registered a default against me on 16/02/13. This seems a bit harsh as I was making the regular payments as agreed with their team. Also why that date? Surely the default should be dated the day of account closure? Any advice/views would be greatly appreciated,

Many thanks

Gaz83

Sparky111 wrote: »

Hi all and thanks for reading,

I left the armed forces in March 2012 and the job lined up fell through, leaving me unable to service my Yorkshire bank O/D with a limit of £1250. It slowly increased in balance until it reaches £1359 in the November at which point they closed the account and passed it to their collections team. I finally got a job and contacted the collections team on 22/12/2012 offering to make payment at £30 per week starting 28/12/12 until the balance was clear and no further action would be taken against me if I held up my end (which I did). Thinking this was all sorted and in a much better place financially I pulled my credit file pre-mortgage application to find they registered a default against me on 16/02/13. This seems a bit harsh as I was making the regular payments as agreed with their team. Also why that date? Surely the default should be dated the day of account closure? Any advice/views would be greatly appreciated,

Many thanks

You don't say whether or not they accepted your offer or not. Did they?

Sparky111

Yes, they accepted but it was verbal over the phone, I spoke with an advisor from the bank yesterday who could not understand why the default date was in February when the account was closed in the November, he stated that the date did appear erroneous but would need to forward the complaint to the collections department for investigation.

Candyapple

The thing is, you defaulted on your repayments so even though you may have agreed to clear the balance by £30pw, you still failed to clear the overdraft when they requested it so the date of the default even though it may be 3 months later, would still be valid.

If you are applying for a mortgage you should definitely speak to a broker because some lenders will disregard you outright due to the default.

fermi

If they had closed the account, called in the OD, and passed to collections before you came to any arrangement, then under the ICO and current account/OD status codes definitions a default would arguably be the appropriate thing to have recorded at that point.

If so, then just because you came to an informal arrangement some time later, that doesn't undo the fact of the default.

You can argue it, and may even have some success from goodwill and/or a liberal interpretation of the definitions. I would just count any success as a bonus if it happens.

Sparky111

Thanks Candyapple, I don't dispute the default, my error so my punishment, I'm more querying the date, I feel the default should be logged on the date of closure as apposed to 3 months forward of that date. As for the mortgage the wife is happy to wait until it drops off as by then we would have a 20% deposit rather than a 10% and both that and the default removal will greatly reduce the interest rate on any mortgage off.

Sparky111

Thanks Fermi, I'm playing the nice, non treating role with them at the moment and current feeling from them is they made of made errors with their dates, fingers crossed the at least move the date back a few months so dropping from my file a little sooner, what confuses me is the late payment markers leading to the default, I'm marked '3' November, '4' December, '5' January, '6' February with default registered 16/02/2013. I had already been paying since December 28th 2012 but Yorkshire bank claim they closed the account on 28/11/2012, so surely that is the day of default?

jellie

Sparky111 wrote: »

Thanks Fermi, I'm playing the nice, non treating role with them at the moment and current feeling from them is they made of made errors with their dates, fingers crossed the at least move the date back a few months so dropping from my file a little sooner, what confuses me is the late payment markers leading to the default, I'm marked '3' November, '4' December, '5' January, '6' February with default registered 16/02/2013. I had already been paying since December 28th 2012 but Yorkshire bank claim they closed the account on 28/11/2012, so surely that is the day of default?

If they refuse to move the date back, you can always refer to the FOS.

I'd wait it out and see what the outcome of your complaint is - no need to threaten them with anything, and I doubt if it would change their mind anyway.

Fingers crossed they see sense and amend your credit file without you needing to go to the FOS.

david_Tai

thank you for sharing. I am very satisfied about what you mentioned

fusionx212

quesiton it via the credit reference agencies, incorrect information on the record is a bad thing and you can ask to have it removed on the above basis.

that may not stop them applying the correct dates thought but thats more than likely not.

I Had the same situation and i challenged it via experian and all were removed