bank refuse to remove default what next

babyt_2

Hi all,

With all he credit crunch business about we are pretty lucky that we can afford a mortgage but are struggling to get one because of a default on my credit file. It was a small personal loan tha defaulted in 2005 for about 300 pound, which i paid off and the account was and is settled. I have written to the bank to ask them to remove it as it is not beneficial to them nor me and also stated that it is wrong for them to continue processing my data as my account is no longer active. They refuse to remove the default because they say they have right to keep it on there. I don't believe that doing so is neccessary and it means for the next three years we cannot get a decent mortgage! Have contacted the F.O but they are taking a long time to reply after they're supposed to be contacting the bank on my behalf. Where do i go next?

thanks

sammyjammy

I don't know what you expect the FO to do about it, you defaulted and the bank has the right to keep that default there for six years, there isn't a damn thing you can do about it, its standard practice that defaults remain on your record for six years unless it was a mistake.

I don't see that a £300 default that is satisfied and three years old should make you unable to get a mortgage, maybe there is something else? What LTV are you looking at?

Sam

Miss_Marple_2

Defaults stay on your account for 6 years, whether settled or not.

I know it's annoying, but the default was genuine, so the bank won't remove it

_Andy_

Credit files reflect factual information about how you have previosly conducted credit. You defaulted, it shows a default. Not sure why you feel this is unfair.

Mark7799

Is it still registered as a default or have you got it registered as 'satisfied' by the Bank?

babyt_2

I feel its unfair as the bank made a misake with the account meaning it was their fault it went into default. It is registered as satisified on my file but still refused credit!

We need a LTV mortgage of 95% so maybe this and the default is why the high street lenders wont lend to us?!

sammyjammy

What sort of mistake? If you can get the bank to admit it was there fault you went into default then you may be able to get them to remove it, you'll need to give us more info.

fermi

You need to work your way through the procedures listed in the factsheet below (page 19 onwards) providing evidence at each stage that the default on the account was not your fault.

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

There is some background on how a company should behave when filing a default here:

Technical Guidance Note - Filing defaults with credit reference agencies