Help needed - bank screwing me
Discussion
Hopefully some legal expert out there can tell me what to do.
Basically, I bought an Aston V8 Vantage on finance and earlier on in the year I P/X'd it against a new car. As is normal practice, the dealer paid off the finance on my Aston, whilst I used the remaining cash as a deposit on the new car.
I thought all this was fine (as I've done it many times before), and didn't think anymore about it.
Then a couple of months ago I get a letter from the Aston finance company (a well known high street name), saying that I was in default to the tune of £135,000 approx against the Aston. I immediately went mental and phoned the dealership who promptly faxed me over proof that they had indeed paid the settlement figure and well before its expiry date. And, it did show that the payment had cleared.
I then rang the finance company who advised me that the account was all clear and it had been some kind of admin error on their part and not to worry about it. I asked if my credit rating would be damaged and was told a firm NO.
Then lately, lots of strange things have been happening. I suddenly start getting letters from these companies that offer to help out people in debt. My credit card limit was reduced from £18k to £400 (I clear the balance every month). Then today, I decided to speak to my bank about it. They had a look and said that my credit rating was through the floor and recommended that I contact experian. At this point, I should point out that I have always had a small amount of credit and have never ever missed any payments or anything silly like that - in fact, I would probably consider myself a really good risk.
Anyway, you know where this is going, I get the experian report and sure enough the £135,000 default is on there.
I then ring the finance company again, at this point not being very impressed at all, to eventually be told that yes it was their error. The settlement received from the dealer was credited to my account, along with the same amount twice more. The finance company then realising their mistake removed the payments, but also removed the first one that was the correct one from the dealership.
They tell me that they soon realised this and corrected it on their system, but in the meantime I was automatically issued with a default.
They have assured me that they are going to now remove the default but I can't help but think my credit score will still remain damaged for some time. In addition to this, frankly I have found the whole thing really stressful and I've been losing a lot of sleep over it all.
So I suppose what I'm asking is what can I do to ensure that my credit rating is returned to normal and what should I do to express how utterly stressed I have been by this whole horrid thing. I honestly, do not want to bother getting credit ever again (except Mortgage - which I have no choice about).
Please help guys.
Basically, I bought an Aston V8 Vantage on finance and earlier on in the year I P/X'd it against a new car. As is normal practice, the dealer paid off the finance on my Aston, whilst I used the remaining cash as a deposit on the new car.
I thought all this was fine (as I've done it many times before), and didn't think anymore about it.
Then a couple of months ago I get a letter from the Aston finance company (a well known high street name), saying that I was in default to the tune of £135,000 approx against the Aston. I immediately went mental and phoned the dealership who promptly faxed me over proof that they had indeed paid the settlement figure and well before its expiry date. And, it did show that the payment had cleared.
I then rang the finance company who advised me that the account was all clear and it had been some kind of admin error on their part and not to worry about it. I asked if my credit rating would be damaged and was told a firm NO.
Then lately, lots of strange things have been happening. I suddenly start getting letters from these companies that offer to help out people in debt. My credit card limit was reduced from £18k to £400 (I clear the balance every month). Then today, I decided to speak to my bank about it. They had a look and said that my credit rating was through the floor and recommended that I contact experian. At this point, I should point out that I have always had a small amount of credit and have never ever missed any payments or anything silly like that - in fact, I would probably consider myself a really good risk.
Anyway, you know where this is going, I get the experian report and sure enough the £135,000 default is on there.
I then ring the finance company again, at this point not being very impressed at all, to eventually be told that yes it was their error. The settlement received from the dealer was credited to my account, along with the same amount twice more. The finance company then realising their mistake removed the payments, but also removed the first one that was the correct one from the dealership.
They tell me that they soon realised this and corrected it on their system, but in the meantime I was automatically issued with a default.
They have assured me that they are going to now remove the default but I can't help but think my credit score will still remain damaged for some time. In addition to this, frankly I have found the whole thing really stressful and I've been losing a lot of sleep over it all.
So I suppose what I'm asking is what can I do to ensure that my credit rating is returned to normal and what should I do to express how utterly stressed I have been by this whole horrid thing. I honestly, do not want to bother getting credit ever again (except Mortgage - which I have no choice about).
Please help guys.
I'm no legal expert by any means but I read up on the financial markets from time to time and my other half is an accountant. My recommendation would be to contact the financial ombudsman, just google it and it'll direct you to the website. they should be able to help loads. Hope this helps!
I think you can put an explanation note on your credit file, but for £135k I'd be using a lot more ink
See how the finance company handle it. Assuming you dont need a lot of credit in the next 6 weeks, sign up to get a credit report via the Experian website. I had a default (a real one!) a long time ago which stuck with me for 6 years, and I was counting down the days until the records were updated, which IIRC is once a month.
You could probably get that removed quicker depending on how loud you shout, as it's clearly not your fault
See how the finance company handle it. Assuming you dont need a lot of credit in the next 6 weeks, sign up to get a credit report via the Experian website. I had a default (a real one!) a long time ago which stuck with me for 6 years, and I was counting down the days until the records were updated, which IIRC is once a month.
You could probably get that removed quicker depending on how loud you shout, as it's clearly not your fault
The bank has the ability to correct your credit rating although if a bank mistake it can automate the default and hence it will never correct it. Will take a couple of weeks to get fixed and if you are in the right should include significant compensation as your character has been stained.
I'd say it's par for the course these days.
Someone get's it wrong about you, so they decide to throw a shower of shit and not even bother letting you know.
It's the way the digital world works.
Personally I'm all for a techno savvy government, but sadly, we'll be lucky.
Someone get's it wrong about you, so they decide to throw a shower of shit and not even bother letting you know.
It's the way the digital world works.
Personally I'm all for a techno savvy government, but sadly, we'll be lucky.
Edited by dilbert on Monday 24th September 21:08
AM04ARO said:
The bank has the ability to correct your credit rating although if a bank mistake it can automate the default and hence it will never correct it. Will take a couple of weeks to get fixed and if you are in the right should include significant compensation as your character has been stained.
Undoubtedly, the more you have to loose, the more compensation you'll be entitled to.I actually said to the advisor/agent what would have happened if the fixed rate on my mortgage was coming to an end? I wouldn't be able to get another deal - as no main stream lender would touch me, so my current mortgage would revert onto a variable rate and I'd probably end up paying at least £600/700 more per month. I asked if they would pay the extra and was told NO!
Not only that but I run a business and if I needed a temporary overdraft or something, knowing that they credit score the shareholders/directors, the company would be screwed too. Which could snowball into innocent people losing jobs, etc.
It seems that if it is joe public in the wrong the bank can do whatever they please and if it is the bank in the wrong they can also do whatever they please. Firstly I just want to get my rating sorted out and secondly I want them to understand that this sort of thing is unacceptable.
If it had happened to someone who was just about keeping their head above water it doesn't bear thinking about.
Not only that but I run a business and if I needed a temporary overdraft or something, knowing that they credit score the shareholders/directors, the company would be screwed too. Which could snowball into innocent people losing jobs, etc.
It seems that if it is joe public in the wrong the bank can do whatever they please and if it is the bank in the wrong they can also do whatever they please. Firstly I just want to get my rating sorted out and secondly I want them to understand that this sort of thing is unacceptable.
If it had happened to someone who was just about keeping their head above water it doesn't bear thinking about.
Looks like very strong grounds for libel and defamation of character to me and all in back and white on their credit scoring system...
'oh sorry we made a mistake' really isn't very helpful when you're trying to raise credit for your mortgage, credit card or another car purchase, be honest if they made the mistake, they need to correct the mistake, and quickly!
If a guy in the USA can sue Google for $5 billion on the charge that his social security number, when turned upside down and scrambled, spells Google I am quite sure you have very strong grounds for requesting a smaller sum in compensation and the deletion of this error they made on their system.
Actually, thinking about this, perhaps it might be a good idea to post this on a few other forums, particularly the finance related ones and perhaps a few based in the USA, reason being that the credit reference company may not want this kind of bad publicity to be banded about, especially if they have been unwilling to correct their errors!
'oh sorry we made a mistake' really isn't very helpful when you're trying to raise credit for your mortgage, credit card or another car purchase, be honest if they made the mistake, they need to correct the mistake, and quickly!
If a guy in the USA can sue Google for $5 billion on the charge that his social security number, when turned upside down and scrambled, spells Google I am quite sure you have very strong grounds for requesting a smaller sum in compensation and the deletion of this error they made on their system.
Actually, thinking about this, perhaps it might be a good idea to post this on a few other forums, particularly the finance related ones and perhaps a few based in the USA, reason being that the credit reference company may not want this kind of bad publicity to be banded about, especially if they have been unwilling to correct their errors!
Edited by mr motor on Tuesday 25th September 00:04
mr motor said:
Actually, thinking about this, perhaps it might be a good idea to post this on a few other forums, particularly the finance related ones and perhaps a few based in the USA, reason being that the credit reference company may not want this kind of bad publicity to be banded about, especially if they have been unwilling to correct their errors!
It isn't the credit reference agency who are at fault here, its the finance house. The agencies react to what they are told by the banks.OP, if you check your Experian report, I think it tells you how to go about getting errors removed from the report from your end rather than waitng for the bank to be pro-active. Its a tedious process IIRC, but I'd rather go through that than have a £135k default registered against my name for the next 6 years.
It will seriously screw your mortgage chances when you next come to apply, particularly now most mortgage decisioning systems are automated. Defaults give lenders twitchy sphincter disease, and getting a ledner to change their mind is nigh on impossible when it's a case of your word vs their credit system
I have had a bit of experience in this matter, albeit a default which was about 0.1% of this one but still had a devastating effect!
The good news is that the credit agencies update within hours to show the new status, and this should have an instant effect to the credit 'score'.
What I would do is explain what has happened to the credit card companies etc.
With a bit of luck no permenant damage is done. You do have protection under the Data Protection Act, and you would be able to claim compensation, should you find you have encountered a financial loss however.
The good news is that the credit agencies update within hours to show the new status, and this should have an instant effect to the credit 'score'.
What I would do is explain what has happened to the credit card companies etc.
With a bit of luck no permenant damage is done. You do have protection under the Data Protection Act, and you would be able to claim compensation, should you find you have encountered a financial loss however.
The Credit Reference agencies only exist because of the Data Protection Act. Under the DPA the data " Shall be accurate and, where necessary, kept up to date." (Principle 4)
They are breaking the Data Protection Act. They need to remove the incorrect data, not mark it satisfied or anything else, it needs to be removed so there is no record of it.
They may tell you they can't do that, but don't believe them. If they give you any crap then threaten write a letter to their Data Controller threatening to report them to the Data Commissioner and tell them you will recommend their license be revoked. For a Credit Ref Agency or bank that would be the end of their business so they would probably pull their finger out.
They are breaking the Data Protection Act. They need to remove the incorrect data, not mark it satisfied or anything else, it needs to be removed so there is no record of it.
They may tell you they can't do that, but don't believe them. If they give you any crap then threaten write a letter to their Data Controller threatening to report them to the Data Commissioner and tell them you will recommend their license be revoked. For a Credit Ref Agency or bank that would be the end of their business so they would probably pull their finger out.
mr motor said:
Looks like very strong grounds for libel and defamation of character to me and all in back and white on their credit scoring system...
'oh sorry we made a mistake' really isn't very helpful when you're trying to raise credit for your mortgage, credit card or another car purchase, be honest if they made the mistake, they need to correct the mistake, and quickly!
If a guy in the USA can sue Google for $5 billion on the charge that his social security number, when turned upside down and scrambled, spells Google I am quite sure you have very strong grounds for requesting a smaller sum in compensation and the deletion of this error they made on their system.
Actually, thinking about this, perhaps it might be a good idea to post this on a few other forums, particularly the finance related ones and perhaps a few based in the USA, reason being that the credit reference company may not want this kind of bad publicity to be banded about, especially if they have been unwilling to correct their errors!
You should get a slot on Jeremy Kyle, motor me old mate........ The guy who sued Google for $5nb was the same guy who sued McDonalds for making him fat, and Quentin Tarantino for nicking his film ideas.'oh sorry we made a mistake' really isn't very helpful when you're trying to raise credit for your mortgage, credit card or another car purchase, be honest if they made the mistake, they need to correct the mistake, and quickly!
If a guy in the USA can sue Google for $5 billion on the charge that his social security number, when turned upside down and scrambled, spells Google I am quite sure you have very strong grounds for requesting a smaller sum in compensation and the deletion of this error they made on their system.
Actually, thinking about this, perhaps it might be a good idea to post this on a few other forums, particularly the finance related ones and perhaps a few based in the USA, reason being that the credit reference company may not want this kind of bad publicity to be banded about, especially if they have been unwilling to correct their errors!
Edited by mr motor on Tuesday 25th September 00:04
Here's what to do really. The details and manner you do this are important here so bear with me..... CEO's get a thousand moaning letters from aggreived pikeys every day. Your letter needs to rise above all that.
1. Go and buy some expensive high quality writing paper, a couple of expensive envelopes, and some ink for your fountain pen.
2. HAND WRITE a letter to the CEO of the company who have screwed up, explaining the circumstances of the issue, and the fact that they have caused you a great deal of inconvenience.
3. Inform them that in view of the problems this has caused, you have consulted your solicitor and that they have fourteen days to correct the mistake, and confirm in writing that they have done so, otherwise you will take the matter up with the solicitor. Explain that you cannot run your business with this error on their part hanging over you, and incorporate the excellent wording from timsta re Data Protection Act - you are entitled to have incorrect information corrected under the Law.
4. Send the letter by DHL or something so it has to be signed for. Mark it Confiedntial - Addressee Only
5. Keep a copy.
Should have a desired effect.
Edited by Vesuvius 996 on Tuesday 25th September 09:39
Edited by Vesuvius 996 on Tuesday 25th September 09:40
Lots of rather over the top "advice" here.
The finance company has the ability to contact Experian and have the default removed. I had the same problem where an error by Halifax resulted in an erroneous default appearing on my file. It sat there for a number of years without causing me any problems...when I found out (new mortgage time) I contacted Halifax and it was removed within 24 hours - although I understand this can take up to a month in some circumstances.
The finance company has the ability to contact Experian and have the default removed. I had the same problem where an error by Halifax resulted in an erroneous default appearing on my file. It sat there for a number of years without causing me any problems...when I found out (new mortgage time) I contacted Halifax and it was removed within 24 hours - although I understand this can take up to a month in some circumstances.
UpTheIron said:
Lots of rather over the top "advice" here.
The finance company has the ability to contact Experian and have the default removed. I had the same problem where an error by Halifax resulted in an erroneous default appearing on my file. It sat there for a number of years without causing me any problems...when I found out (new mortgage time) I contacted Halifax and it was removed within 24 hours - although I understand this can take up to a month in some circumstances.
This is all that is needed. Speak with the company who placed the default - get them to contact reference agencies.The finance company has the ability to contact Experian and have the default removed. I had the same problem where an error by Halifax resulted in an erroneous default appearing on my file. It sat there for a number of years without causing me any problems...when I found out (new mortgage time) I contacted Halifax and it was removed within 24 hours - although I understand this can take up to a month in some circumstances.
Be nice and polite, they'll sort it asap. Meantime, write to Experian / Equifax / ICC with proof that the bill was paid and ask for it to be removed by them, stating that you've contacted the company involved and they haven't done anything other than issue proof of THEIR error.
No need for solicitors or legal threats - doesn't get you special treatment at Experian, although it will mean you're treated to waiting until the specified time limit (as long as possible) by most companies
My advice is to go to this site:-
http://www.consumeractiongroup.co.uk/forum/
I post advice on there regularly and we can sort it out with no real difficulty.
http://www.consumeractiongroup.co.uk/forum/
I post advice on there regularly and we can sort it out with no real difficulty.
Hey thanks for the great advice guys. I do feel a bit happier now I must admit. Today I have obtained concrete proof that the finance was settled well within the required timescale.
Speaking to the 'bank' they have said that all trace of the default will be removed, although they will not confirm this in writing to me. Basically, it is down to me to do another credit check on myself (again at my expense) to ensure my status is now correct.
I've also spoken to the dealer who actually settled the finance and they have advised me to contact the financial services authority (FSA) and complain heavily. Will the FSA be interested, is it really in their field?
Thanks again
Speaking to the 'bank' they have said that all trace of the default will be removed, although they will not confirm this in writing to me. Basically, it is down to me to do another credit check on myself (again at my expense) to ensure my status is now correct.
I've also spoken to the dealer who actually settled the finance and they have advised me to contact the financial services authority (FSA) and complain heavily. Will the FSA be interested, is it really in their field?
Thanks again
Forums | Speed, Plod & the Law | Top of Page | What's New | My Stuff