Unfair default

sullino

Hi

I had an overdraft in 2010 but was unable to pay off in full so went to Paypal.

I recently looked through my credit report and was surprised to see a default on my account two years ago. I phoned the bank and they say that because there was no ‘arrangement to pay’ the account was defaulted. During this time I did not miss a payment and it seems like a communication error between RBS and Paypal has damaged my credit rating. Has anyone had a similar situation or can offer advice?

sammyjammy

It sounds perfectly correct. As you couldn't repay the overdraft you made an arrangement to pay a smaller monthly amount, they agreed to this but you had still broken the contract, hence the default.

ETA As you defaulted in 2010 that is when the default date should be, hence it would drop off your report six years from that date. Asf the default wasn't registered then you may be able to complain and get the date changed.

sourcrates

Hi,

Why were you surprised to see a default ?

If you repay a debt through any kind of debt management you risk having a default placed on your credit file.

As there are no fixed payments to an OD, if you had kept quiet, and paid a few quid into the account each month, until it was repaid, unless the bank had called in the overdraught, no one would of been any the wiser, and your credit file would not of been affected.

sullino

It's mistimed default as opposed to an unfair one.

I'm surprised because I made payments but they decided to but a default on my account 5 years later. What makes it worse is that all others have dropped off. It should have been defaulted in 2010 and wish I had done what you've said sourcrates

sourcrates

sullino wrote: »

It's mistimed default as opposed to an unfair one.

I'm surprised because I made payments but they decided to but a default on my account 5 years later. What makes it worse is that all others have dropped off. It should have been defaulted in 2010 and wish I had done what you've said sourcrates

You can write and complain about the default date you know.

Follow the banks complaints procedure, it's likely you will be successful.

sullino

I complained and was successful. RBS removed the default.

They admitted that they hadn't sent a default notice and that it was unfair as payments were still made. I also received £200 as goodwill for the inconvenience.

Thanks for your suggestion.

DawnW

Nice to hear of a good outcome. Thanks for the update and all the best for the future