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Incorrect default applied
Flo2108
Posts: 37 Forumite
Hi all,
Just after some advice.
In 2012 I had a bank account which i used solely to pay car insurance from. I went into the bank in mid 2014 to close the account as I no longer needed it.
I spent over an hour and half in the branch and eventually was told the account was closed. (I moved address roughly 3 weeks after going in, this was the reason for closure).
Fast forward, around 12 months later I received a letter from the bank to my new address telling me I owed £130 in bank charges because a direct debit failed to leave. Yes, failed, not paid, failed.
Obviously, I called them up telling them I’d closed the account, but they ‘had no record’ of a closure. I was young at the time and to my detriment, ignored it for a while after this, rather than making an official complaint.
I never checked my credit file until around 2015. Upon checking, they’d registered a default against me in late 2014.
Having more knowledge of the industry, in 2016 I rang them (they’d still send yearly statements with the debit balance) and requested them to clear the debt and remove the default, it was refused. Multiple calls, multiple promises of call backs, all down the drain.
3 years later, the Monday just gone, I received a letter from the bank telling me they’d incorrectly applied the default and charges, and they’d now removed the default and cleared the charges to rectify this.
My issue is, has that really rectified it? For the past 5 years if I’ve ever needed credit I’ve been smashed with high interest rates, or been declined. For a number of years I could even get a current account. I wasn’t able to go on the mortgage for our house with my wife, and so on and so on. Essentially ruined my credit for 5 years.
Would it be worthwhile going through the complaints procedure and maybe FOS, and if so, does anyone have any idea what the outcome maybe?
Thanks
Just after some advice.
In 2012 I had a bank account which i used solely to pay car insurance from. I went into the bank in mid 2014 to close the account as I no longer needed it.
I spent over an hour and half in the branch and eventually was told the account was closed. (I moved address roughly 3 weeks after going in, this was the reason for closure).
Fast forward, around 12 months later I received a letter from the bank to my new address telling me I owed £130 in bank charges because a direct debit failed to leave. Yes, failed, not paid, failed.
Obviously, I called them up telling them I’d closed the account, but they ‘had no record’ of a closure. I was young at the time and to my detriment, ignored it for a while after this, rather than making an official complaint.
I never checked my credit file until around 2015. Upon checking, they’d registered a default against me in late 2014.
Having more knowledge of the industry, in 2016 I rang them (they’d still send yearly statements with the debit balance) and requested them to clear the debt and remove the default, it was refused. Multiple calls, multiple promises of call backs, all down the drain.
3 years later, the Monday just gone, I received a letter from the bank telling me they’d incorrectly applied the default and charges, and they’d now removed the default and cleared the charges to rectify this.
My issue is, has that really rectified it? For the past 5 years if I’ve ever needed credit I’ve been smashed with high interest rates, or been declined. For a number of years I could even get a current account. I wasn’t able to go on the mortgage for our house with my wife, and so on and so on. Essentially ruined my credit for 5 years.
Would it be worthwhile going through the complaints procedure and maybe FOS, and if so, does anyone have any idea what the outcome maybe?
Thanks
0
Comments
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Be grateful they’re accepting the mistake and removing any reference to it.
What exactly are you after?0 -
If you have really received such a letter admitting to the error and the incorrect default then yes.
Does the letter make no mention of the subject of compensation?0 -
Be grateful they’re accepting the mistake and removing any reference to it.
What exactly are you after?
I mean, I’m not ‘after’ anything, hence why I’m asking if it would be worth going through a complaint.
Appreciate your reply but I’m not grateful my credit was ruined for 5 years and I couldn’t even get a bank account, and when I did it was a ‘basic’ one, through absolutely no fault of my own.0 -
Hi all,
Just after some advice.
In 2012 I had a bank account which i used solely to pay car insurance from. I went into the bank in mid 2014 to close the account as I no longer needed it.
I spent over an hour and half in the branch and eventually was told the account was closed. (I moved address roughly 3 weeks after going in, this was the reason for closure).
Fast forward, around 12 months later I received a letter from the bank to my new address telling me I owed £130 in bank charges because a direct debit failed to leave. Yes, failed, not paid, failed.
Obviously, I called them up telling them I’d closed the account, but they ‘had no record’ of a closure. I was young at the time and to my detriment, ignored it for a while after this, rather than making an official complaint.
I never checked my credit file until around 2015. Upon checking, they’d registered a default against me in late 2014.
Having more knowledge of the industry, in 2016 I rang them (they’d still send yearly statements with the debit balance) and requested them to clear the debt and remove the default, it was refused. Multiple calls, multiple promises of call backs, all down the drain.
3 years later, the Monday just gone, I received a letter from the bank telling me they’d incorrectly applied the default and charges, and they’d now removed the default and cleared the charges to rectify this.
My issue is, has that really rectified it? For the past 5 years if I’ve ever needed credit I’ve been smashed with high interest rates, or been declined. For a number of years I could even get a current account. I wasn’t able to go on the mortgage for our house with my wife, and so on and so on. Essentially ruined my credit for 5 years.
Would it be worthwhile going through the complaints procedure and maybe FOS, and if so, does anyone have any idea what the outcome maybe?
Thanks
Question. Was the credit rate you were given affordable? And you were able to pay it?
If yes, what compensation are you after?
If you thought the rate was excessive, you should had declined it.
As for the failed direct debit, closing an account does not stop an insurance contract or direct debit, therefore in respect you were at fault fir nit chasing this in 2012 or 2015.
As for the mortgage, what do you want?0 -
Hi Flo2108 and welcome to the forum
From what you say in your post, it seems that the default marker had a detrimental impact on how lenders viewed you and your credit file. I definitely feel that you should be seeking compensation for their error. I would make an official written complaint, so that you can escalate to the FOS and ICO if the complaint is not upheld and compensation is not paid.I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job
0 -
If you have really received such a letter admitting to the error and the incorrect default then yes.
Does the letter make no mention of the subject of compensation?
It doesn’t Ben it just says they’ve removed the default and negative balance to rectify the mistake.
“We’re sorry for this mistake and have now taken action to fix the error”.0 -
Blackbeard_of_Perranporth wrote: »Question. Was the credit rate you were given affordable? And you were able to pay it?
If yes, what compensation are you after?
If you thought the rate was excessive, you should had declined it.
As for the failed direct debit, closing an account does not stop an insurance contract or direct debit, therefore in respect you were at fault fir nit chasing this in 2012 or 2015.
As for the mortgage, what do you want?Willing2Learn wrote: »Hi Flo2108 and welcome to the forum
From what you say in your post, it seems that the default marker had a detrimental impact on how lenders viewed you and your credit file. I definitely feel that you should be seeking compensation for their error. I would make an official written complaint, so that you can escalate to the FOS and ICO if the complaint is not upheld and compensation is not paid.
Hey, thanks for the reply and welcome.
I’ve just got the address to write the complaint to from their website. The ‘detrimental impact on how lenders view you and your credit file’ is pretty much what I was looking for but didn’t know how to word it, thank you!0 -
I'm like the 'People's Poet', don't you know it!The ‘detrimental impact on how lenders view you and your credit file’ is pretty much what I was looking for but didn’t know how to word it, thank you!
I work within the voluntary sector, supporting vulnerable people to rebuild their lives.
I love my job0 -
One default won’t limit you to only basic bank accounts.
There’s clearly more that’s amiss here with your credit file than one obsolete default.0 -
One default won’t limit you to only basic bank accounts.
There’s clearly more that’s amiss here with your credit file than one obsolete default.
I applied for a current account in 2015 with Barclays & Lloyd’s and was told my both I was only eligible for a basic account. I had no other accounts on my credit file other than the banks default. I guess maybe the fact I didn’t have any good history to counteract the bad one, but that’s the way it rolled. After having the basic for roughly a year they offered me a normal current account.0
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