Incorrect default applied

[Deleted User]

So that was a lack of credit history problem then rather than the default, as you’ve pointed out.

Flo2108

Flo2108 wrote: »

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.

!!! wrote: »

So that was a lack of credit history problem then rather than the default, as you’ve pointed out.

So if I had no credit history, no default, just a blank history, I wouldn’t get a current account? You just said a default wouldn’t mean a basic bank account....

I was 19 years old, how much credit history could I have?

Flo2108

I came asking for advice on a possible complaint and whether or not it was worth it, not to play back and forth with what might and might not have been. It’s quiet obviously a default has a detrimental effect on a credit file.

[Deleted User]

Contact the bank and ask.

But be prepared to demonstrate the detrimental financial loss you suffered over the years to justify the compo claim.

What about the failed DD?
What was that for and why was it not transferred to a new account?

Is/was anyone chasing payment for that?

Willing2Learn

I definitely feel that being only 19 and not having a six year credit history would in itself make it more difficult to get credit. But the bank did write to the OP saying "We’re sorry for this mistake and have now taken action to fix the error". They were clearly at fault for recording inaccurate data on the OPs credit file. This negative data would have reduced the prospects of the OP being successful in any credit applications. Especially when added to the aforementioned lack of credit history.

@OP - When you do contact the bank, make sure to only enter into correspondence in writing (ie don't make your complaint by phone)

Ben8282

Although I am generally in agreement that the bank have acted very badly and you should be due some compensation, there are a few things that I don't quite understand.

Firstly, why exactly did you find it necessary to close your, presumably only, bank account simply because you were about to change your address? Why, for example, did you not transfer the account to a branch nearer to your new address? (not that things like that have been important for many years now).
Why did you not open a new bank account immediately after closing the old one?
Or perhaps, as you state that this account was used for the sole purpose of paying your car insurance, this was not your sole bank account. But this raises the question of why you needed a new bank account at all if you already had another account and therefore how you found yourself stuck with nothing but a basic account.
It also strikes me as very odd to be maintaining a bank account for the sole purpose of paying your car insurance direct debit.
There also appears to be some confusion about the date of closing the account. Was it 2012 or 2014? If the latter, why mention 2012 at all as it would have no relevance.
Then there is the question of why, having closed the bank account being maintained for the sole purpose of paying your car insurance direct debit, why you then failed to inform the car insurance provider of your actions. After all, you used this bank account for no other purpose. And how did you intend to continue to pay your car insurance, having apparently left yourself without a bank account?
Did the car insurance provider not contact you regarding the unpaid direct debt?
I have more points to make but need to know when exactly the bank account was closed.

Flo2108

!!! wrote: »

Contact the bank and ask.

But be prepared to demonstrate the detrimental financial loss you suffered over the years to justify the compo claim.

What about the failed DD?
What was that for and why was it not transferred to a new account?

Is/was anyone chasing payment for that?

There was one final payment to be made on the insurance which I’d paid on my debit card earlier in the month, but the company still tried to take the direct debit. There’s no money owing on that insurance, and the policy ended at the end of that month. I hadn’t thought about cancelling the DD as I’d closed the account.

I can demonstrate that I’ve had had credit with large interest applied and I’m sure I can find emails for declined applications for accounts/products too.

That’s also what I didn’t know, would a complaint be rejected if it was purely or mostly based on detriment to myself rather than financial loss - such as being declined for a mortgage etc, rather than just paying high interest on other products.

Flo2108

Ben8282 wrote: »

Although I am generally in agreement that the bank have acted very badly and you should be due some compensation, there are a few things that I don't quite understand.

Firstly, why exactly did you find it necessary to close your, presumably only, bank account simply because you were about to change your address? Why, for example, did you not transfer the account to a branch nearer to your new address? (not that things like that have been important for many years now).
Why did you not open a new bank account immediately after closing the old one?
Or perhaps, as you state that this account was used for the sole purpose of paying your car insurance, this was not your sole bank account. But this raises the question of why you needed a new bank account at all if you already had another account and therefore how you found yourself stuck with nothing but a basic account.
It also strikes me as very odd to be maintaining a bank account for the sole purpose of paying your car insurance direct debit.
There also appears to be some confusion about the date of closing the account. Was it 2012 or 2014? If the latter, why mention 2012 at all as it would have no relevance.
Then there is the question of why, having closed the bank account being maintained for the sole purpose of paying your car insurance direct debit, why you then failed to inform the car insurance provider of your actions. After all, you used this bank account for no other purpose. And how did you intend to continue to pay your car insurance, having apparently left yourself without a bank account?
Did the car insurance provider not contact you regarding the unpaid direct debt?
I have more points to make but need to know when exactly the bank account was closed.

All reasonable - I mentioned above about the insurance.

I worked for a car dealership at the time, and because of my age when I joined, was unable to be placed on their traders policy. Once I was over 18, they put me on, and thus I had no need for my own insurance anymore. I didn’t have another bank account at the time, solely because I didn’t need one. I was paid cash in work, mainly due to the nature of the job, but I also preferred it at the time (guessing someone will mention cash in hand, it wasn’t).

I continued to work there until the following year. When I left is when I applied for a current account, and was declined.

More than happy to answer anymore questions to get more help.

Flo2108

Also didn’t answer, the 2012 is when the account was opened, sorry. No relevance really.

2014 was the closure.

Flo2108

Also unable to edit - whilst I did have a personal car that was covered by my work policy, I did try and insure it myself to maintain no claims at my new address, however the prices were so high for my age and the area, I just stuck with the work one.