Can the Small Claims court order a default to be removed?

martinjn

I have just received back a final response from the FOS who have upheld my complaint.  

Barclay's increased my credit limit from £6000 to £9000 in or around 2017 which the FOS agreed this week Barclays should not have done so.   Barclays did go on to reduce my credit limit back down from £9000 to £6000 about a year later but only once i took out a loan to pay off £6000 to avoid going into arrears. About a year later my finances started to become a problem because i was borrowing money to pay money and I eventually was issued with a default on my Barclays account and I was in arrears with all my other creditors. 

Its clear looking at my credit file that this additional loan added the my financial problems but the FOS has only told Barclays to refund me charges from the time my credit was increased until i was reduced back down to £6000. The reason the FOS gave for this was  "I find it reasonable that his credit limit was reduced at a time when this didn’t put Mr N into financial difficulties and noting that he kept his balance at around £3,000, making the minimum repayments, for the next few months before making a further substantial payment, I do not find I can say that the limit at that time was unaffordable for him."

I dont think the FOS understood that all the money i paid to Barclays was from borrowed money which was clear from the credit files i had provided. 

This means that the default will remain which was the main reason for starting my complaint. 

My next step seems to be the Small Claims Court and i wanted to know if anyone has a similar situation and if a Small Claims Court has the power to remove a default. 

sammyjammy

No I don't believe they do have the power to make them remove a default, if all this happened in 2017 what is the date of the default.  They only remain on your record for six years from start date.

martinjn

The default wasn't until 2020. so it got a few more years left yet.  

My financial issues started around the time of the credit increase but was covered up by all the money i was borrowing.  Living above my means basically.  I didnt even want charges back just for it to be removed.