Overdraft Default removal success story

caroline1973lefty

Just wanted to post this here to encourage people. I had a default from Halifax from October 2017 (only blot on my credit record now and due to last til 2023) relating to a student bank account which had been inactive since June 2013, but on which I had left an overdraft of £985, which then suddenly had fees charged on 2017 which took it over the £1k overdraft limit. Debt was given to actions agencies to chase (who I ignored) then sold to Hoist last year. I finally plucked the courage to call Halifax’s collections departments and explained this had been from a tough period in my life (this is true but I didn’t go into to too much detail) and that I had moved and omitted to notify of change of address. I talked to them about the lack of default notice served - as they subsequently had my address via another route. I asked if they could remove the default as its now holding me back - finally thinking about a mortgage. The guy I spoke to was v sympathetic and put through a complaint for me. Literally the next working day I had a call from the complaints department saying, the notice was served to my old address, however, it was there error not to close my account when it went inactive (ie no funds being paid in) so they were going to wipe the £150 fees, backdate the default to 2013 (so, no longer on my credit report - hooray!) and - to my amazement - pay me £250 in compensation! They couldn’t have been nicer, I was anticipating a battle to be honest, but this does seem fair to me. As it happens I have paid Hoist in full (on same day I called Halifax) so I am probably £700 poorer than I could have got away with, but I did owe the money and could afford to pay now so that’s ok. Dunno why they were so nice really - they seemed really concerned about me going to the ombudsman - I did submit a subject access request on the same day, so maybe that helps. Just wanted to let people know it can be done as I’ve seen a l lot of posts saying it’s difficult with overdrafts and the default date can be surprisingly late 

caroline1973lefty

In summary (in case not clear cos of typos) my experience was that the whole “notice” issue doesn’t really work as a strategy if you haven’t told them new address, but if the date of the overdraft default seems unfair then it can be pushed back to when it was fairer. And that being nice and not getting too much into a big sob story probably helps as does doing a SAR. 

ThisnotThat

I'm a bit surprised that they put the default date back to when you stopped funding the account, as I can't see any reference in the T&C's to funding requirements for the account or the overdraft.

I think you got very lucky, and it may have something to do with you not going in guns blazing as you say.