Car finance ruined credit

[Geoff21]

Right here goes, so last year i changed banks and forgot to set my car payment up so missed 1 payment. The company then divided the payment that was missed over 4 months however when they set the dd up they entered the incorrect amount which was lower than my normal payment. I know im also at fault here as i never checked it but then 6 months later they wrote to me and said i was in £300 arrears and they had set up another payment arrangement. I spoke to them as this now meant i had fallen into arrears with them twice and had two payment plans, i asked as they were at fault for setting up the dd what happens then and could not get straight answer. My question is should/could they remove the recent payment plan as if it had been set up correctly in the first place the second one wouldn't have occurred. Long winded i know, sorry, any advice would be much appreciated

[teaboy2]

Re: Car finance ruined credit

Whilst they are at fault for setting up DD for wrong amount, the fact is, you are responsible for checking your bank account and making sure amounts going out are correct amounts, which you have already admitted your partly responsible for failing to check.

If the second DD is for a reasonable monthly amount, and only for the repayment of the £300 arrears, then i don't see how you have anything to worry about. Though i think you should contact them and ask them whether this would impact your credit rating in anyway, considering the mistake originally occurred at their end not yours!

[Geoff21]

Re: Car finance ruined credit

Thanks for your reply, it has affected my credit as theyve registered both payment arrangements on it and also shows arrears for the time when the £300 was building up into arrears

[nemesis45]

Re: Car finance ruined credit

Thanks for your reply, it has affected my credit as theyve registered both payment arrangements on it and also shows arrears for the time when the £300 was building up into arrears

The Information Commissioners Office which regulates the way accounts are reported to credit reference agencies has said that Credit File entries must show an accurate and up to date picture of the conduct of an account.

It maybe in your case that due to an error in the DD set up and it resulting in two separate " arrangements to pay" being set up which has as a consequence impacted unfairly on your credit profile that a Formal Complaint to the Data Controller of the creditor regarding the way the conduct of the account has been reported will get a more applicable entry recorded.

nem