Unfair Default... Help!

Nutella18

Hi

Firstly, may i say hello as i am new to this site:)

Basically, my partner and I are in the process of shaping up our credit reports in preparation for a mortgage in the next 12 months.

To our surprise my partner has a registered default of a closed account with TSB for £31.85!! and to make thing worse this is technically not money owed but charges they have recorded.

So my first call was to letter TSB and ask

1. What was the default for
2.Proof of any correspondence in relation to the default
3.Questioned the fairness as it shows on the credit file of £10 charges accumulated over 3 months prior to them closing and defaulting the account.

There response was that we accumulated 3 x £10 charges over 3 months due to a returning "DD". So, in essence the default is for charges they put on our account he was unaware of. My partner switched bank accounts and therefore this is why this has happened...but...they have not told us of the DD in question and he is certain any DD were re-arranged with new bank...going to look for proof of this once we know the DD.

They also said they would put the balance to zero and change status to settled and enclosed a cheque for £100 for the trouble it has caused.

So they accept the default was due to their own charges so i am confused as to why they are still going to record it as a default. I am hoping to get evidence of moving DD once we know what it is for as this will support our case however if i cannot get that proof where do we stand?

i just think it is unfair as it was charges they have now taken off, not an actual balance we owed if that makes sense, they have offered compensation and have no evidence of ever requesting this money or serving a default...

any information anyone can give would be of much help

Sorry if this doesn't make much sense its just my head it doing overtime...the thought of not being able to buy to late 2020 is torture!

boo_star

Nutella18 wrote: »

They also said they would put the balance to zero and change status to settled and enclosed a cheque for £100 for the trouble it has caused.

Did they specifically say settled?

If they did they may well be doing what you wanted anyway. A defaulted account won't show as "settled" it will show as either "partially satisfied" or "satisfied."

Ben8282

If they have offered you £100 compensation then it would appear that they have accepted some sort of liability and I would therefore think that you could reasonably insist that the default be removed.
I don't want to sound critical, but I hope that as a result of this you will be more careful in future and actually check that things are as they should be. It is difficult for me to believe that you could not have been aware that whatever this dd was for had remained unpaid for 3 months. if it was, why are you not complaining about the late payment record on your credit files or why did whoever the dd was from not contact you at the time regarding the non-payment of the dd? Did you not receive any statements from TSB, such as a final closing statement, when the switch took place? Did TSB not write to you or send you a statement during the 3 months that this was going on? Did TSB not contact you when they defaulted and closed the already switched and closed account?
If you 'switched' your account as you say, how come the original TSB account was not closed at the time?

DCFC79

Is your partner not doing any of the work ?

boo_star

Ben8282 wrote: »

If they have offered you £100 compensation then it would appear that they have accepted some sort of liability and I would therefore think that you could reasonably insist that the default be removed.
I don't want to sound critical, but I hope that as a result of this you will be more careful in future and actually check that things are as they should be. It is difficult for me to believe that you could not have been aware that whatever this dd was for had remained unpaid for 3 months. if it was, why are you not complaining about the late payment record on your credit files or why did whoever the dd was from not contact you at the time regarding the non-payment of the dd? Did you not receive any statements from TSB, such as a final closing statement, when the switch took place? Did TSB not write to you or send you a statement during the 3 months that this was going on? Did TSB not contact you when they defaulted and closed the already switched and closed account?
If you 'switched' your account as you say, how come the original TSB account was not closed at the time?

My suspicion is the £100 payment was because the OP claims they received no statements.

I also suspect that this was a manual switch rather than using CASS so the account wouldn’t be closed unless the partner contacted them and requested it.

It makes no sense that the bank would dig their heels in over a problem with a CASS switch.

larrysfu

Complain to the FOS.

Nutella18

The letter states that they will record as "settled" and put balance to £0

Nutella18

Well...thats the thing we do not know what the DD was for still waiting on a response from TSB as there is nothing else on his file i.e no late payments etc. Plus, this is going back to 2014 my partner has had nothing in credit until just recently as we are only in our 20's

Nutella18

He is a computer dinosaur :rotfl: & to be honest i don't mind helping him...

[Deleted User]

Did you not switch banks using the switch service?
If not, how did you "transfer" the direct debit to the new bank?

If the old account was closed, then the DD would just be rejected.

So they've changed the account to Settled, removed the charges, and offered £100 compo - check in a months time if the default has been removed

MalMonroe

Can't you just phone the bank and ask them if they have removed the default? If they haven't, ask them to. By giving you compensation, they've admitted that they did it wrong. Just phone them, when they're next open, and put your mind at ease, saves you having to wait until your next credit report is produced!