Arrears reporting of £8 balance to my credit file

Bells

Hi - hoping for some thoughts on any legalities about whether the purpose of reporting arrears to indicate financial difficulties, actually applies to a situation of an £8 balance being reported being in arrears for 5 months

I balance transferred out from Lloyds credit card last year - 100% - there was an £8 interest added the following month. I moved addresses shortly after and did not change address etc as I thought I had paid off the whole balance. To be honest I'd had the card for years on interest free which only expired recently, so always thought that once balance paid off in full in time of payment date, nothing further to be done and no more interest.

Several months later by way of my credit file I noticed arrears being reported by Lloyds. To put a long story short, I paid off the £8 balance when I noticed it (logged onto internet banking) and raised a complaint with Lloyds to state that the disclosure of their interest was unclear and unjust to report such a minute balance being unpaid for 5 months. They didnt agree, I took it to the ombudsman who neither saw any reason to remove the arrears reporting from my credit file.

I'm also trying to buy my first property and now have problems securing a mortgage with a reasonable LTV value, I can only now get restricted offers because I have arrears reported. Consequently - my savings/family support is now not enough for a the lower LTV values - for someone who literally, apart from this £8 issue above, has a clear credit file with controlled credit management displayed over many years.:mad:

Is there any further action anyone can advise after my complaint and request to the ombudsman to retract the arrears reporting on this £8 balance has been turned down?

Thanks!

tastyhog

well you owed the money, didn't update your address, presumably didn't check any statements.

so the arrears reporting is a true reflection of your financial standing, if you had updated your address you would have got statements and letters about the monies owed.

chalk it up to experience of changing addresses when you next move, which presumably will be in the not too distance future albeit at a greater cost to yourself because of your error.

[Deleted User]

It!!!8217;s a trailing interest balance.

You should have updated Lloyd!!!8217;s with your address when you moved as doing a BT doesn!!!8217;t close the account.

You have no standing to have it removed. If you need a mortgage you best go to a broker who specialises in adverse credit files

fatbelly

If an ombudsman has made a decision on a case, that decision is final. Neither side can appeal to another ombudsman.

Trentenders

fatbelly wrote: »

If an ombudsman has made a decision on a case, that decision is final. Neither side can appeal to another ombudsman.

It's actually only binding on the company and you are still free to take the company to court, but I don't see that you have much of a case.



Assuming that you don't want to wait a long time before moving, you'll just have to suck up the higher rates available to you for a couple of years, before you can remortgage to something better.

System

Bells wrote: »

Hi - hoping for some thoughts on any legalities about whether the purpose of reporting arrears to indicate financial difficulties, actually applies to a situation of an £8 balance being reported being in arrears for 5 months
!

It applies even if it was 8 pence. You owed the money, you didn't pay it. The correct facts have been recorded on your credit file.

sourcrates

Trentenders wrote: »

It's actually only binding on the company and you are still free to take the company to court, but I don't see that you have much of a case.

On what basis would you take this case to court ?


The money was legitimately owed, that is not in dispute, and a court has no discretion to amend or alter a credit file for a debt genuinely owed..


There is no case here.

Trentenders

sourcrates wrote: »

On what basis would you take this case to court ?


The money was legitimately owed, that is not in dispute, and a court has no discretion to amend or alter a credit file for a debt genuinely owed..


There is no case here.

I wouldn't. I also wouldn't have gone to an Ombudsman. Agreed that there is no case, but just disagreed that the Ombudsman's decision was binding upon the complainant.


ETA:



See - http://www.financial-ombudsman.org.uk/faq/answers/complaints_a12.html



"The consumer doesn't have to accept the decision !!!8211; and if they don't, our decision does not affect their legal rights. So they are still free to go to court instead."

sourcrates

Trentenders wrote: »

I wouldn't. I also wouldn't have gone to an Ombudsman. Agreed that there is no case, but just disagreed that the Ombudsman's decision was binding upon the complainant.


ETA:



See - http://www.financial-ombudsman.org.uk/faq/answers/complaints_a12.html



"The consumer doesn't have to accept the decision !!!8211; and if they don't, our decision does not affect their legal rights. So they are still free to go to court instead."

Yes we are both well aware an individuals basic legal rights are not infringed by an ombudsman decision, i was merely pointing out that this case in particular could go no further.


I think the OP was desperately clutching at straws with this one.

Dobbibill

Hi Bells - welcome to the forum.

Unfortunately, Lloyds are not in the wrong with this. The interest is explained both on the website and the documentation you recieve when opening the account.

That aside - I think it's a good job you checked your report when you did and resolved the problem.

If you can wait before moving the impact will lessen with time (waiting may give you even more savings, possible moving to a different LTV bracket) . If not, it will mean taking a mortgage you may have previously avoided. Keep up to date with all financial institutions when you do move, check your credit file regularly and switch your mortgage in the future to a better deal.

sparkey1

Hello,


Sorry to say its your fault. However lets move on from that, and try and make some positives.



1 Suggest you set up a direct debit to cover the minimum balance for all your cards. That way if you move house, forget etc, at least they will get the minimum payment.


2 Dont close the account, keep it open until the default drops off. If you close the account the history will be there for six years.


3 Check all your cards, loans, bank accounts etc are at the right address.


4 Use the text / emails alert facility that a lot of cards have to remind you to pay.


5 You could try adding a notice of correction to the credit report. Explain that you moved address and genuinely didn't realise there was £8 outstanding. Its not likely to make a difference, but at least an underwriter would be able to see it and make a decision, without having to query it.


6 Make sure you are using a mortgage broker who can scan the market for adverse credit morgages.