Hi everyone!
I wonder if anybody could offer me some advice? I took out a personal loan with my bank (Natwest – £6,000) and the first repayment was set for the 15th of this month. I phoned the bank today as I noticed they hadn’t taken my payment from my account and I was put to the “Collections” dept where I was merrily informed that my account was in default and a credit reference agency had been contacted to add this default to my file! I could barely believe it! After a quick run through what had gone wrong which involved a lot of long silences, sounds of lots of typing and being put on hold a number of times, I was given a sincere apology and informed it had been raised as a complaint and I would receive written confirmation of the complaint and the name and direct number of the person who would be dealing with my complaint within 5 days. All very nice I thought BUT they’ve told a credit reference agency that I’ve defaulted on a loan payment which will be added to my credit file! I’m going to apply for a mortgage later this year. Is this going to stuff me up and does anybody know how I can get cast iron guarantees that this will be resolved so it doesn’t disqualify me? There is over £2000 in that account and I was fully expecting the £220 payment to be debited on the 15th. The bank person on the phone was very apologetic but that isn’t going to help me with my credit file! Please, can anyone offer any advice? I’m both furious and gutted.
Oh. I ride a Kona front suspension bike by the way although I can’t say how that makes any difference 😕

Posted 12 years ago

Ah so your the cause of all the ‘toxic debt’ are you 😉

If Natwest accepts responsibility then they will contact whichever credit reference agency they use to have your credit file adjusted. If you want to check yourself that they have amended your credit file then you will have to contact Experian or Equifax. If the mistake is still on your credit file then you will need to explain the situation to the credit reference agency and they will contact Natwest on your behalf to have your account corrected.

I’d be surprised if they have applied a default notice to your credit file, it’s more likely that they have applied a ‘missed payment’ note instead. A ‘missed payment’ is no where near as bad as a ‘default’, and probably wouldn’t affect your chances of a mortgage that much, but obviously this still needs correcting.

Posted 12 years ago

Welcome aboard Nichola.

I think you need to ensure the bank contact the credit agency and have the default removed. Make sure you get written confirmation that the bank have instructed the agency, that the agency have replied and acted accordingly. Then get a copy of your credit report to make sure they have done everything you asked.

Don’t wait for this person to call you. Call them at the earliest opportunity and express you displeasure. Back this up with a letter to the same effect. Take notes of all your telephone conversations with the bank until you are happy the matter is fully resolved.

Get some advice. Citizens Advice will sort you out for free.

Good Luck!!

Oh and go for a ride soon, helps with the stress. 😀

Posted 12 years ago

Just remind the fat bankers , WE THE TAX PAYER NOW OWN A LARGE PART OF THEM, and they should be very lucky to keep there jobs.
Go to your local branch and kick shit up, ask for the manager, and demand he phones head office.

Think of all the people theyre throwing out of homes.

Posted 12 years ago

You can check your Experian credit reference here

https://www.creditexpert.co.uk/

Posted 12 years ago

i would have thought if your name is good, by law they must clear your name to ensure the accuracy of your data. think this falls under the data protection act.

Posted 12 years ago

As above, but be aware that there are a number of credit reference databases, I think Experian are the largest but Natwest may use a different one. I’m not sure that they all talk to each other.

Ben

Posted 12 years ago

Ask Nat West if they pay out for defamation (I think that’s the offence).

Posted 12 years ago

Equifax are the other main one I think?

give em a kicking!

Posted 12 years ago

Raise a case through the FINANCIAL OMBUDSMAN…..they have an obligation to resolve it in a set period of time…..say you were distressed etc etc…..I gaurantee you will get a long letter of apology….FSA regulated organisations take it VERY serious, as they are rated on the response to Ombudsman claims.

Posted 12 years ago

Wow! Thanks for the helpful advice! I’ll be following it all up as you have all suggested. I’m going to make an appointment at my local branch for this Saturday morning and make notes of everything that is said, copies of letters and things. Loads of helpful advice, thank you. I’ve been saving for ages and I’m beside myself worrying about the effect this could have on my mortgage application. It took me 4 months to actually decide to take out the bloody loan for a car in the first place. I really wish I hadn’t now. Fingers crossed it’ll all come good again. I think I’ll take the long ride home from work tomorrow evening.
Thanks again everybody, very helpful stuff.

Posted 12 years ago

what the logic behind taking out a two/three year loan, before you apply for a mortgage?

Posted 12 years ago

soobalias – If you have a small loan that you manage well it will increase your credit score and therefore increase your chance of getting a good mortgage deal.

Posted 12 years ago

hi, i work in a collections dept – boo hiss! the main thing is to get them to take the overdue payment NOW, most companies update credit reference agencies the last saturday of the month so if the account is brought up-to-date quickly the chances are it wont even show as a late payment. Ask about this when making the payment and get conformation in writting, specifically confirming no default was registered. As above it would be worth getting a copy of your credit file a few weeks later just to be sure.

Posted 12 years ago

ah ha,

seems to have backfired a bit.

hope you get it sorted.

Posted 12 years ago

Nichola – One thing to look out for though is that when setting up a DD on either a credit card, personal loan, etc, is that the first payment is to be taken at least 2 weeks after you have asked to make payments via DD. A DD request can take 2 weeks to process (even within their own bank!) and if that’s the case the small print on the loan will state that you are expected to make the first payment manually.

Posted 12 years ago

I could have a word with the collections team here if you like?

Posted 12 years ago