Credit default and charges after card issuer cancelled direct debit

kd89

Hi All, I've got a couple of credit cards with Creation (IHG cards). Out of nowhere they cancelled by direct debit due to 'inactivity' although I am using the card and I have direct debit payments taken out of my account every month. As a result they charged me a default fee and the default will also go into my credit score. I've been with them with years, paying everything in full and I never had a default in my life. They are adamant that it's my fault and I am obviously outraged, because it's my fault. 
Is that something I can escalate with the financial ombudsman? 
I truly can't believe how a company can sacrifice a customer (because I will be leaving them for good) for £12. 

[Deleted User]

Escalate a formal complaint with Creation first. Then you can go to FOS if you're not satisfied with their response.

But the good news is that you still don't have a default, just a missed payment (unless this has been going on for months and they did actually default you).

phillw

kd89 said:

They are adamant that it's my fault and I am obviously outraged, because it's my fault. 

Have you raised a complaint with them or is it just someone in customer services reading from a script that has said it's your fault?
If you haven't complained already then I would check to make sure that they didn't give you notice and then complain specifically about not being given notice of the cancellation of the direct debit, so that you could reinstate it or pay by alternative means. 
If they did actually give you notice then it's trickier but I would still complain.

Sandtree

What have your statements been saying? If it was to be paid by DD it'll normally say so in some fashion and if its not by DD it'll tell you you need to pay etc.

Their argument that its your fault will be that it was clear on the statement and you didnt respond I imagine.

kd89

Thanks for your responses. 
Regarding statements have been paperless with them so haven't looked at any statements. 
I've now registered a formal complaint and spoke with a manager who refunded the 'default' fees and extra interest, however they mentioned they can't delete this 'default' from my credit file and it will affect my credit score. So I will continue the complaint with the financial ombudsman. 

kuratowski

kd89 said:

Regarding statements have been paperless with them so haven't looked at any statements. 

This is not a good approach.  Get the statements, read them and keep them somewhere you won't lose them (I use Dropbox).

adamp87

They wouldn’t default on your file on the back of one missed payment via Direct Debit - that sounds really off. 

Can you look back through your statements just to double check the direct debit has been taken?

born_again

If a DD has not been taken for 13 months, then it is no longer active & expires and will not take funds.

So if you have been paying the full balance via other means, it is possible to have expired.

How long ago did this happen? As reporting to credit files is usually not immediate.

kaMelo

kd89 said:

Thanks for your responses. 
Regarding statements have been paperless with them so haven't looked at any statements. 
I've now registered a formal complaint and spoke with a manager who refunded the 'default' fees and extra interest, however they mentioned they can't delete this 'default' from my credit file and it will affect my credit score. So I will continue the complaint with the financial ombudsman. 

Whilst this obviously has to change going forward it's also the first thing you should do now to gather evidence for your current problem 
Look at the statement in question that was not paid.as you thought it would by direct debit.
Does it say on the statement that this would be paid via direct debit, something along the lines of:
 "Your Direct Debit payment of £xx.xx will be collected on or after yy/yy/yyyy" ?

If it does then you're home and dry, they messed up. If it does not say it will be collected via direct debit then things are more tricky.  Is the direct debit still active at your bank? If cancelled then ask your bank who cancelled it, if it's still active then why didn't they take it? Check your previous statements to see whether they mention the balance being paid by direct debit to determine when this changed. Gather all the evidence you can to show they are at fault, (assuming they are at fault) and put it all together with your complaint. 

PaulW922

Creation did that to me. I called immediately and they were full of apologies. I got the fee and interest cancelled. So they can sort it out for you if they want to 

[Deleted User]

born_again said:

If a DD has not been taken for 13 months, then it is no longer active & expires and will not take funds.

So if you have been paying the full balance via other means, it is possible to have expired.

How long ago did this happen? As reporting to credit files is usually not immediate.

OP stated they have a DD taken every month for this card