Natwest Misinformation --> Credit Score Impact

valdesnymphes

Sorry for the long post - I want to give an accurate account! TL;DR: Natwest moved my account into Collections after stating they wouldn't, and I want to get the Collection Notice scrubbed from my credit file. I have been paying down the debt I owe and am not challenging that.

I acquired a Natwest Student Account (interest-free) in 2009, and maximised the overdraft. I then set up a £50 monthly payment back into the account every month, and stopped using the account.

A couple of months ago, I received a text message stating that Natwest needed to speak to me, and called them. They explained that the account had been converted to an interest-bearing account, accruing interest at around £56 per month, so my £50 monthly payments (for 6 years) hadn't moved the account balance. The text message had been sent because the account showed that I had exceeded my overdraft (the cumulative £6 interest charges had been enough to push me over that threshold).

I raised a complaint that I hadn't been informed the account was moved to an interest-charging account. It was rejected, but I was forgiven £200 as a goodwill gesture (the cumulative £6/month over the years). I then spoke with the initial Natwest employee, who said that, if I could pay down the account (£1000 remaining), all would be good. I paid £400 on the spot, and set up a standing order for £100 per month to clear the remaining £600 over six months (from June 2016).

*I was very specific in asking whether my account would be passed to Collections, and was informed that it definitely would not, subject to the account being paid down. I did not want the Collection Notice on my Credit File.*

I then received a call from Natwest Collections the next day, saying that my account was now in Collections and an arrangement had to be made. I explained that I was paying £100 per month and did not want a formal Arrangement as this would show on my Credit File. I raised a complaint about being misinformed re: passing my account into Collections.

One month passed, and I received a letter stating that my account had been passed from Collections to Recoveries, that £400 (the remaining balance) was due immediately to avoid a Default Notice. No word on the complaint I issued before.

I have just concluded a call with Natwest Recoveries. They could not confirm whether a Default Notice had or would be applied, they had no record of the previous complaint re: being passed to Collections, and to avoid further problems I set up an Arrangement with them (for the same sum I was initially paying) - against my better judgement, which thought this might be seen as an acceptance of fault.

I have 'reopened' the Collections complaint, to which I got no answer, but now have been seriously misinformed by several different Natwest employees (Collections, Recoveries, and Complaints departments). I have zero faith that they will remove any Collections Notice, even given clear transcripts (which I will request from a branch as soon as I return from holiday). I have stated several times that I am happy to pay any money I owe, but I cannot afford for my Credit File to have a blemish.

As a contributing point, I struggled with debt during my student days and have taken all possible measures to clear it over the subsequent five years. I want to clear my credit file as I would like to get a mortgage at some point in the next couple of years. That is why I am seriously concerned about the Collections Notice (and wanted to avoid an Arrangement appearing either).

What are my most appropriate next steps to remove the Collections Notice/Arrangement from my file?

[Deleted User]

What do your credit files show?

meer53

Any arrangements to pay will show on your credit file, Natwest have up to 8 weeks to respond to a complaint, so if your complaint was made in June, you should hear from them soon.

Candyapple

valdesnymphes wrote: »

I acquired a Natwest Student Account (interest-free) in 2009, and maximised the overdraft. I then set up a £50 monthly payment back into the account every month, and stopped using the account.

A couple of months ago, I received a text message stating that Natwest needed to speak to me, and called them. They explained that the account had been converted to an interest-bearing account, accruing interest at around £56 per month, so my £50 monthly payments (for 6 years) hadn't moved the account balance. The text message had been sent because the account showed that I had exceeded my overdraft (the cumulative £6 interest charges had been enough to push me over that threshold).

Did you not check your bank statements in the entire 6 years to:
a) check when your account was due to change back to a normal account after your student status ended and
b) check what your monthly balance was?

valdesnymphes wrote: »

I raised a complaint that I hadn't been informed the account was moved to an interest-charging account. It was rejected, but I was forgiven £200 as a goodwill gesture (the cumulative £6/month over the years). I then spoke with the initial Natwest employee, who said that, if I could pay down the account (£1000 remaining), all would be good. I paid £400 on the spot, and set up a standing order for £100 per month to clear the remaining £600 over six months (from June 2016). *I was very specific in asking whether my account would be passed to Collections, and was informed that it definitely would not, subject to the account being paid down. I did not want the Collection Notice on my Credit File.*

The problem here is your account was already with collections from the time they sent the first text/possibly sooner if you had exceed your overdraft before that.

Also, the cashier said if you could pay the £1k all would be ok, this means clear the entire balance that day - not in instalments.

valdesnymphes wrote: »

I then received a call from Natwest Collections the next day, saying that my account was now in Collections and an arrangement had to be made. I explained that I was paying £100 per month and did not want a formal Arrangement as this would show on my Credit File. I raised a complaint about being misinformed re: passing my account into Collections.

One month passed, and I received a letter stating that my account had been passed from Collections to Recoveries, that £400 (the remaining balance) was due immediately to avoid a Default Notice. No word on the complaint I issued before.

I have just concluded a call with Natwest Recoveries. They could not confirm whether a Default Notice had or would be applied, they had no record of the previous complaint re: being passed to Collections, and to avoid further problems I set up an Arrangement with them (for the same sum I was initially paying) - against my better judgement, which thought this might be seen as an acceptance of fault.

Why did you set up an Arrangement to Pay if that's what you were trying to avoid in the first place? :huh:

valdesnymphes wrote: »

I have 'reopened' the Collections complaint, to which I got no answer, but now have been seriously misinformed by several different Natwest employees (Collections, Recoveries, and Complaints departments). I have zero faith that they will remove any Collections Notice, even given clear transcripts (which I will request from a branch as soon as I return from holiday). I have stated several times that I am happy to pay any money I owe, but I cannot afford for my Credit File to have a blemish.

As a contributing point, I struggled with debt during my student days and have taken all possible measures to clear it over the subsequent five years. I want to clear my credit file as I would like to get a mortgage at some point in the next couple of years. That is why I am seriously concerned about the Collections Notice (and wanted to avoid an Arrangement appearing either).

What are my most appropriate next steps to remove the Collections Notice/Arrangement from my file?

Good luck in trying to get the AP markers removed as Natwest were correct in applying them in the first place. I think at best you may possibly receive another 'goodwill gesture' payment regarding miscommunication from their staff, but the AP markers will remain.

takman

I really can't believe you setup a £50 a month payment and paid it into an account for 6 years without even looking at the account!.

You can't really blame anyone but yourself for the consequences of not checking the account for such a long period.

I can't see how you would be able to get a mortgage in the next couple of years when you have no savings at all for a deposit (if you did have savings why didn't you use it to clear the overdraft).

Also you said:

I struggled with debt during my student days and have taken all possible measures to clear it over the subsequent five years

Which obviously isn't true if you have only been paying it off at £50 a month which was less than the interest they were adding!.