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  • FIRST POST
    • xfd
    • By xfd 9th Aug 18, 4:40 PM
    • 3Posts
    • 0Thanks
    xfd
    Internal Credit markers with specific banks
    • #1
    • 9th Aug 18, 4:40 PM
    Internal Credit markers with specific banks 9th Aug 18 at 4:40 PM
    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
Page 1
    • zx81
    • By zx81 9th Aug 18, 4:44 PM
    • 18,142 Posts
    • 19,341 Thanks
    zx81
    • #2
    • 9th Aug 18, 4:44 PM
    • #2
    • 9th Aug 18, 4:44 PM
    Yes, it's fair for them to hold it and can be done under legitimate interest.
    • Ed-1
    • By Ed-1 9th Aug 18, 5:05 PM
    • 2,304 Posts
    • 1,217 Thanks
    Ed-1
    • #3
    • 9th Aug 18, 5:05 PM
    • #3
    • 9th Aug 18, 5:05 PM
    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
    Originally posted by xfd
    Which bank is it?
    • takman
    • By takman 9th Aug 18, 5:19 PM
    • 3,600 Posts
    • 3,221 Thanks
    takman
    • #4
    • 9th Aug 18, 5:19 PM
    • #4
    • 9th Aug 18, 5:19 PM
    Why have you got everything with one bank and why would you only go to that bank for a Mortgage?

    You should be shopping round and choosing each account based on the best offer available, you won't be getting the best deals with just one bank and you will effectively be "loosing" money by not getting cashback on your spending and the best interest rate on your savings that are not invested.
    • xfd
    • By xfd 9th Aug 18, 9:26 PM
    • 3 Posts
    • 0 Thanks
    xfd
    • #5
    • 9th Aug 18, 9:26 PM
    • #5
    • 9th Aug 18, 9:26 PM
    Which bank is it?
    Originally posted by Ed-1
    The bank is HSBC
    • xfd
    • By xfd 9th Aug 18, 9:28 PM
    • 3 Posts
    • 0 Thanks
    xfd
    • #6
    • 9th Aug 18, 9:28 PM
    • #6
    • 9th Aug 18, 9:28 PM
    Why have you got everything with one bank and why would you only go to that bank for a Mortgage?
    Originally posted by takman
    Yes, I completely agree. HSBC are very competitive on mortgages and if there were a better deal I would go elsewhere. For some things, it is just more convenient to have things in the same place. eg. Short term cash savings.
    • MovingForwards
    • By MovingForwards 9th Aug 18, 10:45 PM
    • 228 Posts
    • 292 Thanks
    MovingForwards
    • #7
    • 9th Aug 18, 10:45 PM
    • #7
    • 9th Aug 18, 10:45 PM
    If everything has dropped off your credit history you need to be able to show you can manage credit to build up your credit history again.
    • Craig1981
    • By Craig1981 10th Aug 18, 6:23 AM
    • 173 Posts
    • 87 Thanks
    Craig1981
    • #8
    • 10th Aug 18, 6:23 AM
    • #8
    • 10th Aug 18, 6:23 AM
    as everyone has said - shop around!
    i went into an IVA in 2011, discharged Feb 2016 - since then have credit cards, car loans etc, managing responsibly. However, still am unable to take out offers from Santander, HSBC or lloyds (had money with them under the IVA)
    I'm not fussed, as i shop around for best deals anyway

    so it is not just on you - look at making some money by changing current account to other banks etc - no rewards these days for being a loyal customer! its all about being a new customer!
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