Compensation

Seeker21

Hi, through no fault of my own my mortgage company did not take the D/D payment when they should have. They had plenty of time, the correct bank details and there were sufficient funds in the account. They reported me to the credit score companies for a missed payment and this went on my credit score. Can I complain and expect compensation for the black mark against me on my credit score and how much compensation should I expect? Thank you. 

Dellgrad12

Has this actually caused you any detriment? For example has it caused you to miss out on any financial products or services because of the missed payment marker?

Your best course of action is to raise a formal complaint with the bank asking them to remove the missed payment from your record. They may offer a small payment as a gesture of goodwill for the inconvenience, or they may not. They aren’t obligated to though.

Jamesyb123

If they have made an error they should correct it, they may offer you £25 as a gesture but you’re not entitle to anything really unless you can prove it’s lost you money which I suspect it hasn’t. Just let them correct it and move on.

cymruchris

Was this the first payment on a new mortgage? 

I would have been studiously watching my bank account to ensure the payment went out to be sure the direct debit had been set up. Didn't you notice that it hadn't been paid? How soon did you find out, and what did you do to try and put it right?

Compensation wise - I'd say you're probably entitled to about zero pounds and zero pence - but depending on the exact circumstances which at the moment we don't know - you may be offered a goodwill payment of somewhere between £25 and £50 if it was truly only the banks fault. 

As the customer though, you do have the responsibility to make sure that all your debts are serviced correctly - and payments made on time. So if it did happen to be a first payment, you would shoulder a little of the responsibility to ensure the payment was completed. Direct debits sometimes take a while to set up, and they're not always set up in time for the first payment - even if you thought 'they had plenty of time' - it depends on what that timescale was.

 

2021BJ

Unless there have been some knock-on effects from this, which you certainly haven't made clear, then you haven't really suffered a loss to be compensated for so you should expect to receive nothing.  Sadly they might bung you a few quid for the inconvenience, a practice I wish would stop.

[Deleted User]

Disagree with the above - a late/missed payment has a negative impact on your record (even if a relatively minor one when OP isn't likely to be applying for credit so soon after a mortgage), it may also add a negligible amount of interest on as well. If DD is correctly setup and not collected, a formal complaint to remove the marker is likely to trigger an apology payment which is quite right for the bank's mistake. I received £25 from the bank when I paid in 2 cheques at an ATM and the bank only credited one as they hadn't looked in the envelope properly, I didn't ask for it, was just an apology sum which is more than fair.

2021BJ

Deleted_User said:

Disagree with the above - a late/missed payment has a negative impact on your record (even if a relatively minor one when OP isn't likely to be applying for credit so soon after a mortgage), it may also add a negligible amount of interest on as well. If DD is correctly setup and not collected, a formal complaint to remove the marker is likely to trigger an apology payment which is quite right for the bank's mistake. I received £25 from the bank when I paid in 2 cheques at an ATM and the bank only credited one as they hadn't looked in the envelope properly, I didn't ask for it, was just an apology sum which is more than fair.

If it's removed it will have zero impact, and it is very easy to do that.

[Deleted User]

2021BJ said:

Deleted_User said:

Disagree with the above - a late/missed payment has a negative impact on your record (even if a relatively minor one when OP isn't likely to be applying for credit so soon after a mortgage), it may also add a negligible amount of interest on as well. If DD is correctly setup and not collected, a formal complaint to remove the marker is likely to trigger an apology payment which is quite right for the bank's mistake. I received £25 from the bank when I paid in 2 cheques at an ATM and the bank only credited one as they hadn't looked in the envelope properly, I didn't ask for it, was just an apology sum which is more than fair.

If it's removed it will have zero impact, and it is very easy to do that.

If. And while it's still on there incorrectly it has an impact.

2021BJ

Deleted_User said:

2021BJ said:

Deleted_User said:

Disagree with the above - a late/missed payment has a negative impact on your record (even if a relatively minor one when OP isn't likely to be applying for credit so soon after a mortgage), it may also add a negligible amount of interest on as well. If DD is correctly setup and not collected, a formal complaint to remove the marker is likely to trigger an apology payment which is quite right for the bank's mistake. I received £25 from the bank when I paid in 2 cheques at an ATM and the bank only credited one as they hadn't looked in the envelope properly, I didn't ask for it, was just an apology sum which is more than fair.

If it's removed it will have zero impact, and it is very easy to do that.

If. And while it's still on there incorrectly it has an impact.

They're not going to pay compensation unless they agree they've made a mistake and if they agree they've made a mistake they'll fix it.

And it has zero impact whilst it's still there, and unless the OP actually has suffered a loss there is no compensation due.  "Well I might have wanted to apply for credit and it might get declined isn't an actual loss.

Thrugelmir

How did the error occur?