Incorrect default applied

[Deleted User]

Flo2108 wrote: »

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.

That still doesn’t mean it was the default that caused it.

People with “squeaky clean” credit records get declined for cards and are offered higher interest rates on loans still.

I think you’ll struggle to prove that one single default caused all this, in comparison to a lack of credit history.

Willing2Learn

Lack of credit history is a red herring. Why would the OP mention a limited credit history in their complaint?

The bank made a mistake. The bank took several years to rectify their mistake. The default would have been negative data when a credit application was being assessed. This may have resulted in applications either being declined or being accepted with a higher APR, due to a perceived increase of risk.

Flo2108

!!! wrote: »

That still doesn’t mean it was the default that caused it.

People with “squeaky clean” credit records get declined for cards and are offered higher interest rates on loans still.

I think you’ll struggle to prove that one single default caused all this, in comparison to a lack of credit history.

Thanks for the info. Also by high interest, I mean like, payday loan interest, not just from say 3% to 9% etc.

That’s what I was kinda hesitant about in terms of what I can prove to them or FOS.

Flo2108

Willing2Learn wrote: »

Lack of credit history is a red herring. Why would the OP mention a limited credit history in their complaint?

The bank made a mistake. The bank took several years to rectify their mistake. The default would have been negative data when a credit application was being assessed. This may have resulted in applications either being declined or being accepted with a higher APR, due to a perceived increase of risk.

This is kinda the mindset I have, but I don’t know if it’s easy as this or if FOS would agree if it went that far.

I think I’ll still make a written complaint to the bank and see where it goes from there.

[Deleted User]

The payday loans would deter other lenders

Willing2Learn

!!! wrote: »

The payday loans would deter other lenders

Agreed. It would have further compounded the effect of the original bank error...

Ben8282

Sorry, but you are rapidly loosing credibility.
It would appear that you were 16 when you opened this current account in 2012 for the sole purpose of paying your car insurance by direct debit, your having to take out the insurance because as you were not yet 18 you could not be covered on the dealers policy. How much did this insurance for you to be able to drive the dealerships cars cost you at 16? Why was it cheaper than the price you could not afford to insure your own car when you applied for a new car insurance policy aged 18 to drive your own car?
When you turned 18 in 2014and were able to be covered by the dealership policy and you closed the bank account because you were moving/because you didn't need the car insurance any more, why did you never bother to call the car insurance provider and cancel the policy rather than allowing them to attempt a direct debit on a closed account?

Flo2108

Ben8282 wrote: »

Sorry, but you are rapidly loosing credibility.
It would appear that you were 16 when you opened this current account in 2012 for the sole purpose of paying your car insurance by direct debit, your having to take out the insurance because as you were not yet 18 you could not be covered on the dealers policy. How much did this insurance for you to be able to drive the dealerships cars cost you at 16? Why was it cheaper than the price you could not afford to insure your own car when you applied for a new car insurance policy aged 18 to drive your own car?
When you turned 18 in 2014and were able to be covered by the dealership policy and you closed the bank account because you were moving/because you didn't need the car insurance any more, why did you never bother to call the car insurance provider and cancel the policy rather than allowing them to attempt a direct debit on a closed account?

I never said it was opened with the sole purpose of paying car insurance. I said that was it’s sole purpose at the time of closure. Please don’t miss-quote me.

The insurance I had was for my own car - obviously not insurance to drive a whole dealership worth of cars at 18. When I was put onto the traders policy, I no longer needed my own personal insurance. I’ve already explained this, please read.

I’ve already explained, again, that I paid the final payment on the insurance by debit card, and that I didn’t cancel the direct debit as A. I’d paid the final payment. And B. I’d later gone in the bank to close the account.

Flo2108

!!! wrote: »

The payday loans would deter other lenders

I’ve never had a payday loan, I was giving an example of the interest rates on offer. If I’m offered a high interest rate loan, which I take, then that further damages my credit, that’s all as a result of the default anyway.

Ben8282

So many contradictions.

Then why did they attempt to take the direct debit?
It appears that the car insurance people were at fault as well then by attempting to take a direct debit when no money was due? I don't hear a single word of criticism or balme for that though ….. everything is the fault of the bank!