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Car Finance Payment Stopped and Credit Rating Affected

carmyhazel
Posts: 5 Forumite

Help received - thanks!
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Comments
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Ask them to remove the missed payment markers - raise a formal complaint if needed. It won't make your score go up but all that matters is the data that appears, so you want to get those markers removed.
However, you're more likely to be successful if you can immediately make up those missing payments.
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Remember, direct debit is a "pull" (vs a "push" of standing order).
Unless you cancelled the DD, them not taking it is not your fault so failed payments shouldn't be on your record. However, if it's in an account you don't use, why don't you have the money? The fact the DD isn't taken would just mean that account has more money in it, so why not pay it from that?
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Stop fixating on that score, channel that energy into studying, hard, the information there.
It is financial conduct, NOT a score, that is of utmost importance.6 -
So you weren't checking your monthly statements or keeping tabs on your outgoings?
OP, you definitely share some if not all of the responsibility for this.1 -
To me (and probably anyone else reading this thread) it sounds like that old chestnut of “oh they haven’t taken that payment” wait and find out if they take double next month. They then failed to take payment again and at that point you decided they were at fault and to spend the money, easily done if money is tight for sure. That decision has now caught up with you and I don’t think the excuse of “not noticing” you were able to spend your car finance payment money on extra goodies or pay off more debts is all that believable. Generally speaking we are all aware of how much disposable income we have each month after all bills are paid.Regardless, that’s none of our business and that choice was yours. As you weren’t able to pay the payments straight away, It sounds like you have an arrangement to pay order which yes will have a significant impact on your credit profile. If you apply for a mortgage within the next 12-18mths you will likely struggle. If defaults have been marked you could argue your case and blame them for not taking it (if it genuinely was their fault) and the defaults will likely be removed (if it’s a genuine error) but I think because you didn’t have the funds to pay the missing payments immediately and then the instruction of arrangement to pay then that’s not their fault, that’s your fault and as such it will be marked down.0
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CSL0183 said:To me (and probably anyone else reading this thread) it sounds like that old chestnut of “oh they haven’t taken that payment” wait and find out if they take double next month. They then failed to take payment again and at that point you decided they were at fault and to spend the money, easily done if money is tight for sure. That decision has now caught up with you and I don’t think the excuse of “not noticing” you were able to spend your car finance payment money on extra goodies or pay off more debts is all that believable. Generally speaking we are all aware of how much disposable income we have each month after all bills are paid.Regardless, that’s none of our business and that choice was yours. As you weren’t able to pay the payments straight away, It sounds like you have an arrangement to pay order which yes will have a significant impact on your credit profile. If you apply for a mortgage within the next 12-18mths you will likely struggle. If defaults have been marked you could argue your case and blame them for not taking it (if it genuinely was their fault) and the defaults will likely be removed (if it’s a genuine error) but I think because you didn’t have the funds to pay the missing payments immediately and then the instruction of arrangement to pay then that’s not their fault, that’s your fault and as such it will be marked down.0
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CSL0183 said:To me (and probably anyone else reading this thread) it sounds like that old chestnut of “oh they haven’t taken that payment” wait and find out if they take double next month. They then failed to take payment again and at that point you decided they were at fault and to spend the money, easily done if money is tight for sure. That decision has now caught up with you and I don’t think the excuse of “not noticing” you were able to spend your car finance payment money on extra goodies or pay off more debts is all that believable. Generally speaking we are all aware of how much disposable income we have each month after all bills are paid.Regardless, that’s none of our business and that choice was yours. As you weren’t able to pay the payments straight away, It sounds like you have an arrangement to pay order which yes will have a significant impact on your credit profile. If you apply for a mortgage within the next 12-18mths you will likely struggle. If defaults have been marked you could argue your case and blame them for not taking it (if it genuinely was their fault) and the defaults will likely be removed (if it’s a genuine error) but I think because you didn’t have the funds to pay the missing payments immediately and then the instruction of arrangement to pay then that’s not their fault, that’s your fault and as such it will be marked down.
Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.0 -
kimwp said:CSL0183 said:To me (and probably anyone else reading this thread) it sounds like that old chestnut of “oh they haven’t taken that payment” wait and find out if they take double next month. They then failed to take payment again and at that point you decided they were at fault and to spend the money, easily done if money is tight for sure. That decision has now caught up with you and I don’t think the excuse of “not noticing” you were able to spend your car finance payment money on extra goodies or pay off more debts is all that believable. Generally speaking we are all aware of how much disposable income we have each month after all bills are paid.Regardless, that’s none of our business and that choice was yours. As you weren’t able to pay the payments straight away, It sounds like you have an arrangement to pay order which yes will have a significant impact on your credit profile. If you apply for a mortgage within the next 12-18mths you will likely struggle. If defaults have been marked you could argue your case and blame them for not taking it (if it genuinely was their fault) and the defaults will likely be removed (if it’s a genuine error) but I think because you didn’t have the funds to pay the missing payments immediately and then the instruction of arrangement to pay then that’s not their fault, that’s your fault and as such it will be marked down.
Ignorance is not an excuse, that’s why people end up with bad credit files in the first place. If you can see yourself making the same error, it should be an eye opener to learn from. I gather you have had a troubled credit history past too?I review my bank accounts and bill accounts numerous times a month. Within the 4-5 month period mentioned I reckon I would have made about 20-25 checks of all the accounts. When I transfer money from current account to bill account for example, I check the bill account just to make sure the funds have landed in there. We all have smart phones, checking your bank accounts literally takes seconds in the apps, sorry there’s no excuse for financial ignorance.Fortunately we tend to learn from our mistakes though, I’m sure this won’t happen again and the OP will be a lot more observant in the future.5 -
CSL0183 said:Wowsa...where to start....."And you wouldn’t have known you had excess funds to spend on other items that you would not have normally afforded to purchase?"Nope - because I don't track my spend in that way. When I track it, I have a budget based on remainder after DD's and SO's and I spend from that budget - so I only (actively) track that bit."Ignorance is not an excuse, that’s why people end up with bad credit files in the first place. If you can see yourself making the same error, it should be an eye opener to learn from. I gather you have had a troubled credit history past too?"Apart from my mortgage, I have always saved before buying, paid CC's every month in full etc etc. So I'd say your assumption is a little off the mark.When I sign up to a Direct Debit, I am authorising the company to take money from my account at certain times of the month for the service that they are providing me. It is their responsibility to take the amount due at the time agreed and reasonable for me to assume that they have done this."I review my bank accounts and bill accounts numerous times a month. Within the 4-5 month period mentioned I reckon I would have made about 20-25 checks of all the accounts. When I transfer money from current account to bill account for example, I check the bill account just to make sure the funds have landed in there."Might I suggest that better financial management would reduce the number of accounts you need to operate and the time you need to spend checking your accounts?Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.phpFor free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.1
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kimwp said:CSL0183 said:Wowsa...where to start....."And you wouldn’t have known you had excess funds to spend on other items that you would not have normally afforded to purchase?"Nope - because I don't track my spend in that way. When I track it, I have a budget based on remainder after DD's and SO's and I spend from that budget - so I only (actively) track that bit."Ignorance is not an excuse, that’s why people end up with bad credit files in the first place. If you can see yourself making the same error, it should be an eye opener to learn from. I gather you have had a troubled credit history past too?"Apart from my mortgage, I have always saved before buying, paid CC's every month in full etc etc. So I'd say your assumption is a little off the mark.When I sign up to a Direct Debit, I am authorising the company to take money from my account at certain times of the month for the service that they are providing me. It is their responsibility to take the amount due at the time agreed and reasonable for me to assume that they have done this."I review my bank accounts and bill accounts numerous times a month. Within the 4-5 month period mentioned I reckon I would have made about 20-25 checks of all the accounts. When I transfer money from current account to bill account for example, I check the bill account just to make sure the funds have landed in there."Might I suggest that better financial management would reduce the number of accounts you need to operate and the time you need to spend checking your accounts?
People can (and do) manage multiple current accounts for benefits such as account linked savers - if you have time and want to make money there is nothing wrong with it. Also CSL0183 doesn't have a screwed credit rating, you do. Maybe there is a lesson there?
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