Bank Default Appeal on Credit History

[georgefreeman918]

I recently applied for a loan through my bank to purchase a new vehicle and to my surprise I was rejected (in hindsight I should have done a credit check applying).

This was surprising as I thought I ticked all the boxes - salary, no other loans (other than mortgage), small % credit card debt v credit available, however my credit rating was classed as 'Very Poor' and there was a bank default against my name dating back 18 months.

Upon calling Experian, this was due to an unpaid final water bill from when we moved house 18 months ago. No letters / emails have ever been received about the outstanding balance (£65).

Has anyone had an experience in removing the bank default? Yorkshire Water say they can remove it if they are in the wrong, which I am trying to prove. I have requested copies of all correspondence regarding the outstanding balance that have been 'sent' to my home address.

Anybody had any success with this previously / provide an guidance? Thankfully the loan is for a vehicle I don't really need, but if I was applying for a mortgage could pose a big issue!

[Sarnie]

georgefreeman918 said:

I recently applied for a loan through my bank to purchase a new vehicle and to my surprise I was rejected (in hindsight I should have done a credit check applying).

This was surprising as I thought I ticked all the boxes - salary, no other loans (other than mortgage), small % credit card debt v credit available, however my credit rating was classed as 'Very Poor' and there was a bank default against my name dating back 18 months.

Upon calling Experian, this was due to an unpaid final water bill from when we moved house 18 months ago. No letters / emails have ever been received about the outstanding balance (£65).

Has anyone had an experience in removing the bank default? Yorkshire Water say they can remove it if they are in the wrong, which I am trying to prove. I have requested copies of all correspondence regarding the outstanding balance that have been 'sent' to my home address.

Anybody had any success with this previously / provide an guidance? Thankfully the loan is for a vehicle I don't really need, but if I was applying for a mortgage could pose a big issue!

This is why we get all clients to provide a copy of their credit files before applying for a mortgage. Probably 1 in 10 has something on their that they were not aware of.

You are only going to get that default removed if Yorkshore water find that they didn't actually try to contact you........if they did, then they won't remove it.....

[P-Jay]

Utility companies, especially water companies have been getting increasingly aggressive with negative payment markers of the last few years. I think it's probally a combination of the fact they used to be one of the first things people skipped paying when st hit the fan and a lack of competition.

As above, in order to have it removed you're going to have to get them to admit at least some fault. If you told them of the move, even if it was just to the new home (assuming it's the same water provider) and they never sent you a final bill to your current address, then you've got a chance.

Default markers are a proper nightmare, one up from a CCJ in terms of black marks on your history. Even paying it off now will have a limited effect.

If you’re not successful at getting it removed, your best bet is to order a copy of your CRA file from each of the providers (I think it’s 2 or possibly 3) there will be an easy and free way to do so. It’s very unlikely that they will report to more than one, then you just need to find a lender who uses a different one. Hopefully they don’t use Experian, as they’re the most common.

[Louis Balfour]

Sarnie said:

georgefreeman918 said:

I recently applied for a loan through my bank to purchase a new vehicle and to my surprise I was rejected (in hindsight I should have done a credit check applying).

This was surprising as I thought I ticked all the boxes - salary, no other loans (other than mortgage), small % credit card debt v credit available, however my credit rating was classed as 'Very Poor' and there was a bank default against my name dating back 18 months.

Upon calling Experian, this was due to an unpaid final water bill from when we moved house 18 months ago. No letters / emails have ever been received about the outstanding balance (£65).

Has anyone had an experience in removing the bank default? Yorkshire Water say they can remove it if they are in the wrong, which I am trying to prove. I have requested copies of all correspondence regarding the outstanding balance that have been 'sent' to my home address.

Anybody had any success with this previously / provide an guidance? Thankfully the loan is for a vehicle I don't really need, but if I was applying for a mortgage could pose a big issue!

This is why we get all clients to provide a copy of their credit files before applying for a mortgage. Probably 1 in 10 has something on their that they were not aware of.

You are only going to get that default removed if Yorkshore water find that they didn't actually try to contact you........if they did, then they won't remove it.....

I am a little surprised at a default for £65 being a cause for a very poor credit report.

[Sarnie]

Louis Balfour said:

I am a little surprised at a default for £65 being a cause for a very poor credit report.

The value is largely irrelevant.

The presenece of a default will cause issues when trying to obtain credit.