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My partner and myself are in the process of a mortgage application which has been declined on the grounds of an arrangement to pay indicator on my partners Barclays current account.
I rang barclays complaints and spoke with one of the managers who referred to their consumers credit department. They said their actions are 100% correct but I don't believe so.
Our situation is; last year we took a reserve facility off a bank account from barclays. The charges were horrendous, they declined the account to have an overdraft facility so we switched payments and income to my account. Well my partners account was then hit by a direct debit that we had switched (should have gone out of my account) which we had just enough money to cover the most recent reserve charges and other direct debits. It then failed to pay the small direct debits we had left on the account causing even more charges. Eventually the account was almost £200 in an unauthorised overdraft caused by a build up of bank charges. Only £16 was a dd. This happened in November. We rang up Barclays and told them, after receiving a letter to bring the account up to 0, that because of the circumstances we would get the account in the plus on dec 21st as this was when I received bonus/holiday pay. They said that was absolutely fine. We also paid £50 at that time so it was overdrawn by 144. We done as we said and paid the amount off and the account has been in the plus ever since. I looked at the credit report on experian and saw a status 1 (late payment marker) relating to the amount and thought fine that's to be expected. However when recently applying for a mortgage it was declined on the grounds of an arrangement to pay being on the credit report. We never entered into a legal agreement to our knowledge and had no paperwork sent through to confirm this, but no doubt our phone call to them caused It. After checking our experian credit report again I saw the 'arrangement to pay' stating the dates 1/1/2013 until 1/4/2013? I mentioned this to Barclays complaints who said this is correct as it was reported to the CRA 4 weeks after the arrangement was made. Is this above board? Im dubious and would like a second opinion. As expected, We are very keen to try and get this amended/lifted as this is what is causing us trouble with our mortgage application.
I rang barclays complaints and spoke with one of the managers who referred to their consumers credit department. They said their actions are 100% correct but I don't believe so.
Our situation is; last year we took a reserve facility off a bank account from barclays. The charges were horrendous, they declined the account to have an overdraft facility so we switched payments and income to my account. Well my partners account was then hit by a direct debit that we had switched (should have gone out of my account) which we had just enough money to cover the most recent reserve charges and other direct debits. It then failed to pay the small direct debits we had left on the account causing even more charges. Eventually the account was almost £200 in an unauthorised overdraft caused by a build up of bank charges. Only £16 was a dd. This happened in November. We rang up Barclays and told them, after receiving a letter to bring the account up to 0, that because of the circumstances we would get the account in the plus on dec 21st as this was when I received bonus/holiday pay. They said that was absolutely fine. We also paid £50 at that time so it was overdrawn by 144. We done as we said and paid the amount off and the account has been in the plus ever since. I looked at the credit report on experian and saw a status 1 (late payment marker) relating to the amount and thought fine that's to be expected. However when recently applying for a mortgage it was declined on the grounds of an arrangement to pay being on the credit report. We never entered into a legal agreement to our knowledge and had no paperwork sent through to confirm this, but no doubt our phone call to them caused It. After checking our experian credit report again I saw the 'arrangement to pay' stating the dates 1/1/2013 until 1/4/2013? I mentioned this to Barclays complaints who said this is correct as it was reported to the CRA 4 weeks after the arrangement was made. Is this above board? Im dubious and would like a second opinion. As expected, We are very keen to try and get this amended/lifted as this is what is causing us trouble with our mortgage application.
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