Compensation for incorrect credit information affecting mortgage rate?

Mikayala

I may be shooting in the dark but the more I think about this the more angry it's making me.
I had an account with Three for many many years for an internet dongle device which my parents used for accessing the internet.  I decided to upgrade them to broadband so they could enjoy more TV channels and access the internet more easily and reliably.  I therefore phoned Three to cancel the account and they confirmed over the phone this had been done and they said not to cancel the direct debit just yet in case there was anything owed on the account.  I then noticed that the direct debit came out of my account for the next 2 months.  I phoned again and they said that it hadn't been cancelled but they would cancel it.  I then cancelled the direct debit so they could have no further money from my account, I stupidly thought that it would force them to cancel the contract if they couldn't get a payment and they would realise their error.  In this time the dongle was not in use so I didn't know it was still active since I thought the contract was cancelled.
I then received an email telling me they had not been able to access my direct debit so I owed them some money.  I called and they said it must have been an error and they were making sure the contract was cancelled.  I then left it and the next thing I receive is a very threatening letter from a debt collection agency telling me I owed them 3 months worth of direct debits.  I contacted the debt collection agency and explained I had closed the account months previously and they helped me to contact Three yet again.  Three then admitted they had made an error and sent me about £50 apology.  Since a lot of this was on the phone I have no written record and they claim they have no record of my calls.
Fast forward to the beginning of 2022 when I am about to purchase my first home. I have a mortgage in principle and have found a house and had an offer accepted.  Just to remind you this was a time when interest rates were increasing in seemed hourly. Anyway, there was a small delay as I had to get my driving licence renewed before the identity checks could complete but then my mortgage application was all ready but failed on my credit reference check.  I got a report from the credit agencies and everything was green across the board apart from there being a record of me having missed 3 payments to Three.  I spoke to the mortgage broker and explained this was an error since I had cancelled the account and hadn't missed any payments.  This made no difference and I was forced to switch to a mortgage broker with a higher interest rate because of my 'bad credit'.  I was also advised to fix for 5 years, which as it turns out was very sound advice. My repayments went from an estimated £950  a month (with the company who rejected my credit rating) to £1,184 a month. I didn't try and correct my credit file as I was in such a rush to ensure I completed on the house.  These missed payments will disappear from my credit file shortly as it was a while ago.
I am now wondering whether I can claim the difference in the estimated and actual mortgage repayments over the five years from Three since their error has cost me a small fortune?
Is this wishful thinking or could I have a claim?

powerful_Rogue

Mikayala said:

I may be shooting in the dark but the more I think about this the more angry it's making me.
I had an account with Three for many many years for an internet dongle device which my parents used for accessing the internet.  I decided to upgrade them to broadband so they could enjoy more TV channels and access the internet more easily and reliably.  I therefore phoned Three to cancel the account and they confirmed over the phone this had been done and they said not to cancel the direct debit just yet in case there was anything owed on the account.  I then noticed that the direct debit came out of my account for the next 2 months.  I phoned again and they said that it hadn't been cancelled but they would cancel it.  I then cancelled the direct debit so they could have no further money from my account, I stupidly thought that it would force them to cancel the contract if they couldn't get a payment and they would realise their error.  In this time the dongle was not in use so I didn't know it was still active since I thought the contract was cancelled.
I then received an email telling me they had not been able to access my direct debit so I owed them some money.  I called and they said it must have been an error and they were making sure the contract was cancelled.  I then left it and the next thing I receive is a very threatening letter from a debt collection agency telling me I owed them 3 months worth of direct debits.  I contacted the debt collection agency and explained I had closed the account months previously and they helped me to contact Three yet again.  Three then admitted they had made an error and sent me about £50 apology.  Since a lot of this was on the phone I have no written record and they claim they have no record of my calls.
Fast forward to the beginning of 2022 when I am about to purchase my first home. I have a mortgage in principle and have found a house and had an offer accepted.  Just to remind you this was a time when interest rates were increasing in seemed hourly. Anyway, there was a small delay as I had to get my driving licence renewed before the identity checks could complete but then my mortgage application was all ready but failed on my credit reference check.  I got a report from the credit agencies and everything was green across the board apart from there being a record of me having missed 3 payments to Three.  I spoke to the mortgage broker and explained this was an error since I had cancelled the account and hadn't missed any payments.  This made no difference and I was forced to switch to a mortgage broker with a higher interest rate because of my 'bad credit'.  I was also advised to fix for 5 years, which as it turns out was very sound advice. My repayments went from an estimated £950  a month (with the company who rejected my credit rating) to £1,184 a month. I didn't try and correct my credit file as I was in such a rush to ensure I completed on the house.  These missed payments will disappear from my credit file shortly as it was a while ago.
I am now wondering whether I can claim the difference in the estimated and actual mortgage repayments over the five years from Three since their error has cost me a small fortune?
Is this wishful thinking or could I have a claim?

Wishful thinking.

DullGreyGuy

Do you have a letter from the original bank explicitly stating the only reason for declining you were the three missed payments from some time ago? Without it you are speculating as to the reason for the decline and will get no where with any attempt to claim damages. 

penners324

Complain directly to Three about their incorrect data.

Sounds like they still think you owe this.

Then advise you are claiming these additional costs from them. 

Unlikely to get anywhere but see what they say.

martinbainbridge1975

similar to this happened to one of my friends, was EE though similar scenario.  you will need to prove beyond doubt to 3 that they are to blame and this was the sole factor which affected your mortgage so much 

TheBanker

It may not have been the three Direct Debits that caused you to be declined. As you say, interest rates were rising so the lender may have changed their criteria. When they refer to your credit file, they are talking about the whole thing. They might have changed their criteria for debt/income ratios for example, so while you were fine under the old criteria, you failed under the new criteria. 

You will never be able to prove that, but for those three direct debits you would have secured a lower rate. Even if you can, it sounds like you can't actually prove that you cancelled the contract correctly or that Three confirmed this, so I'd suggest forgetting about it.

Sorry, I know it's not what you want to hear but there's no point getting angry.

sourcrates

Credit can be refused for many and varied reasons.

To put the blame squarely at the feet of "3" you would need to provide evidence to that effect.

This would involve the lender divulging there credit scoring technique to you, to use in a claim for damages against "3".
They are unlikely to do this voluntarily, so you would need a solicitor to act for you, and then go to court in order for them to release that information to you.

If, you were successful, you could then start a claim against "3" for what you perceive to be your losses due to there alleged lack of diligence.

In essence, I could see this dragging on through the courts for many years, and costing you way more than the compensation you were originally hoping for.

So, yes, it`s wishful thinking.