Incorrect Default - Can I get compensation?

claire_robinson87

I am currently going through a long-winded remortgage process which started back in March 2020. I was initially declined by both Santander and Lloyds, despite having good credit history. Upon investigation (ordered credit reports from Equifax and Experian), I found I had a default for £196 from BT - registered in October 2019. I hadn't been a customer of BT since 2018 so this was very odd to me. 

To cut a long story short, I immediately looked back through old BT paperwork and realized this must be an error.

I found out the following: 

• BT incorrectly ordered my home move in 2018 and reconnected my old property AS WELL as connecting my new property
• I had a direct debit set up so didn't think anything was awry at the time - the bill matched what was only 1 broadband connection 

I spoke with the exec team who admitted their mistake (I got this in writing thankfully) and had the default removed for me by July 2020. In summary - the incorrect default was on my file between October 2019 - July 2020. 

Compensation?
I wondered if I had any chance of trying to reclaim for the inconvenience and stress caused by mistaken default on their part? As of now, I'm on an incredibly expensive variable rate for my mortgage, when I should be eligible for a more affordable high street lender. The excess is about £900 / month. Can I request £900/month for the timeframe this has been going on for? I.e. March (when I started applying to remortgage) to now? October 2020 = 9 months * £900 = £8100. Or is this madness? 

BT has legitimately caused a really unfortunate financial impact here so I believe they should be held accountable. 

Any thoughts welcome. 

bradders1983

You can try, but I suspect the chances of getting even a 4 figure payout, let alone near a 5 figure one, from BT is going to be very slim.

[Deleted User]

BT will never give you £8100 compo, you can't prove you would have got a rate to give you £900 a month less. You'll get a go away sum, probably more than the usual £25-£100, maybe a bit more if you went to one of the newspaper troubleshooter columns but I wouldn't expect more than £500. 

D3xt3r5L4b

You might get £50 for your troubles.
What explicit proof do you have that the default is what prevented your remortgage?

msallen

£900 extra per month !
Are you sure about that?
If you were paying say 2% higher interest, this would mean you had a mortgage of just over half a million.

claire_robinson87

Thanks for the replies so far. Appreciate the honest responses. 

In terms of proof, I have written feedback from the underwriters via my broker which states that the default was the single cause for decline. 

Agree that it seems unlikely I would receive any money from BT, though something more than a simple ‘sorry’ would be nice, given that the variable rate I mentioned is extremely expensive. 

I cannot prove the default is a direct influence on the cost of £900/month but the logic was that £900 is the difference between our eligibility (before the default was registered, and again once removed) compared with our current standard variable rate we’re now stuck on. 

D3xt3r5L4b

claire_robinson87 said:

Thanks for the replies so far. Appreciate the honest responses. 

In terms of proof, I have written feedback from the underwriters via my broker which states that the default was the single cause for decline. 

Agree that it seems unlikely I would receive any money from BT, though something more than a simple ‘sorry’ would be nice, given that the variable rate I mentioned is extremely expensive. 

I cannot prove the default is a direct influence on the cost of £900/month but the logic was that £900 is the difference between our eligibility (before the default was registered, and again once removed) compared with our current standard variable rate we’re now stuck on. 

£900 per month? Extra?
What rates are and were you on!?

adamp87

At the same time whilst this is a bad mistake on their part, they didn’t compel you to take out the mortgage at the time.

You could of waited till it was sorted/effect removed & done it again on a better rate 

claire_robinson87

adamp87 said:

At the same time whilst this is a bad mistake on their part, they didn’t compel you to take out the mortgage at the time.

You could of waited till it was sorted/effect removed & done it again on a better rate 

Yes, agree I could have waited. The reason I am using the expensive mortgage rates now is that the BT mistake timing coincided with when my current mortgage provider reverted to an expensive variable rate. My argument is that BT took my choice / ability to move onto a cheaper rate away. 

Based on the replies though, I will try my luck with the Comms Ombudsman. Nothing more to lose. I don't expect to receive much financial compensation... anything will be better than nothing at this rate though. 

D3xt3r5L4b

Take the £50 they’ll inevitably offer and call it quits. 

[Deleted User]

claire_robinson87 said:

Thanks for the replies so far. Appreciate the honest responses. 

In terms of proof, I have written feedback from the underwriters via my broker which states that the default was the single cause for decline. 

Agree that it seems unlikely I would receive any money from BT, though something more than a simple ‘sorry’ would be nice, given that the variable rate I mentioned is extremely expensive. 

I cannot prove the default is a direct influence on the cost of £900/month but the logic was that £900 is the difference between our eligibility (before the default was registered, and again once removed) compared with our current standard variable rate we’re now stuck on. 

I said proof that you would have got the rate that gave you £900 a month less, not proof of the default being the cause for decline (which is obvious). You're saying you are "owed" £8100 due to paying £900 a month more because of the default - so what proof can you offer that you would have got a deal of £900 a month better? What if you were only able to get a deal for £500 a month less?