Incorrect Default Compensation

ImAlanPartridge

Hi all. Sorry if this has been posted before, I was recently defaulted by Virgin Media (they’ve accepted responsibility as the account was settled) and has since been corrected on my credit file.

I am going to submit a complaint in writing and just wondered if I am due any compensation for this? My credit score was heavily impacted by the default for a good few weeks/months

Thanks in advance 

eskbanker

What financial loss did you suffer as a result of their mistake?

ImAlanPartridge

eskbanker said:

What financial loss did you suffer as a result of their mistake?

I didn’t make any loss, but I’ve been denied credit as it’s impacted my score to very poor. 

eskbanker

ImAlanPartridge said:

eskbanker said:

What financial loss did you suffer as a result of their mistake?

I didn’t make any loss, but I’ve been denied credit as it’s impacted my score to very poor. 

But you'd still need to quantify that, i.e. can you show the financial impact of being denied that credit, and also demonstrate that you would have been accepted if it wasn't for the default?

CliveOfIndia

ImAlanPartridge said:

eskbanker said:

What financial loss did you suffer as a result of their mistake?

I didn’t make any loss, but I’ve been denied credit as it’s impacted my score to very poor. 

If you can't quantify any loss then you have little grounds for claiming compensation - you may get lucky and receive a token goodwill gesture.  Your score is irrelevant as it's not even seen by any lender.

If the error has been corrected then it will have no further impact upon your credit history and your ability to obtain further credit.

The only way you could legitimately claim compensation would be is if you can prove that the default, whilst it was registered on your credit file, reduced your ability to obtain credit, and this in turn resulted in a financial loss at the time.  This may be a legitimate claim if, for instance, you run your own business and the lack of credit facilities meant you could not buy supplies.  But I think it's going to be tricky to submit a substantiated claim in the majority of scenarios.

MattMattMattUK

ImAlanPartridge said:

eskbanker said:

What financial loss did you suffer as a result of their mistake?

I didn’t make any loss, but I’ve been denied credit as it’s impacted my score to very poor. 

Your "score" or "rating" is a made up and meaningless number, ignore it.

MEM62

ImAlanPartridge said:

I am going to submit a complaint in writing and just wondered if I am due any compensation for this? My credit score was heavily impacted by the default for a good few weeks/months

Your credit 'score' is a randomly generated number that is only ever seen by you and the CRA that created it and is produced for entertainment purposes only.  You would not be entitled to any compensation for a change in this number.  Compensation is paid for actual losses that you can substantiate.       

eskbanker

MEM62 said:
Your credit 'score' is a randomly generated number...

To be pedantic about a frequently misused word, it's not randomly generated as such, even though the algorithms aren't transparent!

MattMattMattUK

eskbanker said:

MEM62 said:
Your credit 'score' is a randomly generated number...

To be pedantic about a frequently misused word, it's not randomly generated as such, even though the algorithms aren't transparent!

It is literally... and something exponential...

I agree it is not random and certainly not transparent, although one part that is pretty transparent is that it is engineered to allow the CRAs to try and sell you new financial products. The fact that the CRAs increase your score if you take out a new credit card through them, but lower it if you do not, their tailored guide tells me that I should increase my credit card utilisation some months as 0% is too low (they claim I should target 1%-25%). They appear to be entirely meaningless, I sometimes wonder if they border upon false advertising. 

MEM62

eskbanker said:

MEM62 said:
Your credit 'score' is a randomly generated number...

To be pedantic about a frequently misused word, it's not randomly generated as such, even though the algorithms aren't transparent!

Of course, you are absolutely right.  I am tempted to use that terminology even knowing that there are algorithms behind it, in order to make the point that the number, however generated, is pretty much useless.