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Hello all, I am writing to request advice on what I can do about a default that has been applied to my credit file. The problem stems to Feb 2015. I had recently moved house and started a new job, and in an attempt to get my finances in order I paid off the overdraft on my (by then) rarely used graduate account, and went in to the branch to close the account. The amount I paid in to the account exceeded the outstanding overdraft, as I had been informed that I needed to to do this to cover forthcoming fees and charges, therefore there was a positive balance. I have enjoyed a very high credit score in the years since, and have never had any problems securing credit.
However, recently I have had a couple of letters from credit card companies reducing my credit limit due to updated information on my credit file, which I thought was a little odd. After a bit of digging, I found out that the bank never followed through with the request to close the account, and that while the account stayed in a positive balance for 18 months or so after I thought it had been closed, it eventually went into an overdraft due to a £10 recurring card payment. Over the course of 2-3 years I racked up a debt of ~£330 (includes overdraft fees). This was not a problem as there was a £1400 overdraft facility, however in Feb this year the overdraft facility was withdrawn and by May the account had been placed in default.
In defence of the bank, they did write to my previous address to warn of all this, but unfortunately for me I only found all of this out today! I feel somewhat aggrieved, because as far as I was aware the account had been closed for nearly 5 years, with no outstanding debt, as per my request in Feb 2015. Obviously had I had any knowledge that there was a payment coming out (incidentally this was for one of those dodgy internet free trials which turn into repeat payments, which must have been running for years, but I’ve never used and don’t know anything about) I would have cancelled it as soon as found out, plus if I’d been aware that the account was in arrears earlier this year I would have cleared the £330 immediately before the default.
This is now likely to have devastating effects on my finances and quality of life, and stems from
the banks failure to close my account when requested. Unfortunately for me I don’t have much in the way of records (as above, I had assumed this account closed for nearly five years so any slip of paper I may have been given confirming closure is probably long gone. This particular bank required the customer to attend in person, closing online or over the phone with email confirmation wasn’t an option). On a more positive note, I expect it’s pretty clear given the fact that I paid off a £1400 overdraft and then never touched the account again for 5 years, or responded to any communication from the bank, that I thought the account had been closed successfully).
Do I stand any chance of getting this default removed from my credit file? I don’t even mind paying the outstanding sum (even though it is quite clearly the banks fault!). What should my first steps be?
However, recently I have had a couple of letters from credit card companies reducing my credit limit due to updated information on my credit file, which I thought was a little odd. After a bit of digging, I found out that the bank never followed through with the request to close the account, and that while the account stayed in a positive balance for 18 months or so after I thought it had been closed, it eventually went into an overdraft due to a £10 recurring card payment. Over the course of 2-3 years I racked up a debt of ~£330 (includes overdraft fees). This was not a problem as there was a £1400 overdraft facility, however in Feb this year the overdraft facility was withdrawn and by May the account had been placed in default.
In defence of the bank, they did write to my previous address to warn of all this, but unfortunately for me I only found all of this out today! I feel somewhat aggrieved, because as far as I was aware the account had been closed for nearly 5 years, with no outstanding debt, as per my request in Feb 2015. Obviously had I had any knowledge that there was a payment coming out (incidentally this was for one of those dodgy internet free trials which turn into repeat payments, which must have been running for years, but I’ve never used and don’t know anything about) I would have cancelled it as soon as found out, plus if I’d been aware that the account was in arrears earlier this year I would have cleared the £330 immediately before the default.
This is now likely to have devastating effects on my finances and quality of life, and stems from
the banks failure to close my account when requested. Unfortunately for me I don’t have much in the way of records (as above, I had assumed this account closed for nearly five years so any slip of paper I may have been given confirming closure is probably long gone. This particular bank required the customer to attend in person, closing online or over the phone with email confirmation wasn’t an option). On a more positive note, I expect it’s pretty clear given the fact that I paid off a £1400 overdraft and then never touched the account again for 5 years, or responded to any communication from the bank, that I thought the account had been closed successfully).
Do I stand any chance of getting this default removed from my credit file? I don’t even mind paying the outstanding sum (even though it is quite clearly the banks fault!). What should my first steps be?
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