Internal Credit markers with specific banks

xfd wrote: »

Hello forum members,

I hope someone can clear this up for me.....I found myself in financial difficulties and had numerous defaults recorded against me in early-mid 2012. They have all now dropped off my credit report (Experian) and I have a 979 / 'Excellent' Experian credit score - I appreciate that this is only Experian's view on me.

One of my defaults was recorded against me by my own bank, the bank that I have banked with for 17 years (since I was single figures) my income goes in there, I have all of my savings & investments (ISA and ShareDealing) with them and now I am contracting I also have my business account with them. I also worked for them for a long time until recently so I have a semi-decent understanding of some of their credit practices.
The debt in question was circa £4k, originally on a credit card through the bank and then passed to their semi-inhouse debt collection agency.

All of my debt was repaid, but whenever I apply for anything with my bank, despite my healthy income and current financial health, everything gets automatically declined by their automated application system. It's a system reject that is due to having an 'financial management marker' against my profile. Essentially, adverse credit card conduct.

The only credit facility I have with them is a £500 overdraft that I barely ever use. The rest of my accounts are run responsibly and in credit and have been for a long time.

It's really frustrating that they have an internal marker that makes everything much slower, much more onerous when I know with other financial providers, I'd be getting immediate system accepted and accounts opened same day.

I can't quite get my head around whether it is right/fair/legal for them to hold this marker. On one hand, I can completely see that when making credit decisions about customers they are going to use all the information at their disposal especially if it their own historic data rather than independent CRA data. On the other hand, as the defaults have dropped of my Credit Report I fell like it is unfair that they still look at the issues surround my finances from over 6 years ago. Also from a DPA perspective, could I not argue that the data they are holding on to is no longer up-to-date nor relevant and they are keeping it for longer than necessary - but I suppose its for them to decide how long is necessary.

There will come a time when I want and need more from my bank, the main thing I am thinking of is a mortgage and I want to try to avoid having to jump through unnecessary hoops if possible.

Appreciate your thoughts in advance.

Thanks,

xfd