Credit score - late payment default

[marek321]

Hi I hope someone can advise me if there is anything I can do with my situation. Until recently I had a credit score of 790 with experian.

 

I have a credit card with Halifax and have always made my payments on time, usually above the minimum payment by 10-20%. On looking at my situation last month I canceled my payment insurance as I felt I did not need it. At the end of last month I was in town and new I needed to make my payment so went into my local Halifax branch and made a payment over the counter of £210. This was made on time as always. a week or so later I began to get automated calls which I thought nothing about, a few days later I got a letter saying I was £5.41 short of my minimum payment, I then called Halifax and payed £10 as soon as I realized this.

 

Yesterday I called Halifax as my experian report showed a late payment, the operator stated she could do nothing about this and that they reported the facts in black and white? I then advised I was working towards a mortgauge and that this may affect my credit rating, to cut a long story short she put me through to a morgauge adviser who tried to proceess a new deal but advisecd me that I was declined. I then went and checked my experian score and found it had dropped to 645 from 790 all because of £5.41. I am absolutely livid!!! Is there anything I can do to sort this out?

 

Any advice would be greatly appreciated.

[izools]

Were you short of the minimum payment because the PPI hadn't been cancelled as agreed, or because of an error in judgement?

 

You could possibly argue the following points (IN WRITING):

 

1. The account was not 30 days overdue, and as such the information they have reported to the credit reference agencies is incorrect. The [1] on your credit files suggest "One month in arrears". You did not fall this late.

 

2. The account was not underpaid, but paid in line with what you were told would fall due as a result of your cancelling the PPI. The error in payment amount was not yours, but Halifax's.

 

You should also mention that as the error(s) fall solely with Halifax, that they are under legal obligation under the Data Protection Act 1998 to correct the errors with all three credit reference agencies within 30 days as the data is misrepresentative of the truth, unfair, and inaccurate.

 

You could also say in your letter that failure to rectify the issue within the prescribed time frame may result in action being brought upon them for defamation of character and enforcement made through the regulatory body (Information Commissioners Office).

 

 

Good luck, and keep us posted

 

P.S: The address to write to should be the one on your Experian report under "Profile Information"

[marek321]

Hi Everyone I would like to update you with some welcoming news,

 

after posting here i drafted a letter and sent it off to Halifax card services, here is the letter is sent

 

LATE PAYMENT NOTICE COMPLAINT

ME

@my address

21/10/09

 

HALIFAX CARD SERVICES

UNDERWRITING (LEEDS),

FLOOR 6 PHASE 3,

LOVELL PARK ROAD,

LEEDS,

LS1 1NS

 

Dear Sir or Madam,

 

Re: Card number: ************************

 

Dear Sir/Madam

 

I am writing to you in relation to my above account. I contacted you in July to cancel my Payment protection. On the 5th August you sent me a new style statement with the payment protection still included.

 

At the end of August I was in Town when I knew I had my credit card payment due So I went into the local Halifax Branch and paid £210 over the counter onto my credit card, I did not at this time have my statement to hand. I thought this amount covered the minimum payment required (when my balance was higher?) as I have in the recent past paid this amount, which covered the minimum payments (details off Experian and Equifax are detailed below).

 

On the 7th September 2009 you sent me a letter stating that I was short of my minimum payment, I received this on the 11th September 2009. On receipt of this letter I immediately called Halifax Card Services and paid £10 over the phone (11:48 hrs 11/09/09).

 

To my horror I checked my Experian report and found it to show a missed payment/late payment. I phoned you and you stated that I would have to write a letter with the circumstances, which I do today. Whilst on the phone I advised that I was working towards a re-mortgage with Halifax and I was passed to an advisor who tried to process a application, this came back as a fail. As a result of this checked my Experian report score and found that your report had lowered my credit score from a previous 790 to 645, lowering me from fair rating to poor, all for £5.41 which I paid as soon as Halifax contacted me.

 

I find this unacceptable and request that this be amended with all three of the credit reference agencies, which I have allowed to update with my History. I add to that, the account was not 30 days overdue, and as such the information they have reported to the credit reference agencies is incorrect. The [1] on your credit files suggest "One month in arrears". You did not fall this late.

 

Halifax, are under legal obligation under the Data Protection Act 1998 to correct the errors with all three credit reference agencies within 30 days as the data is misrepresentative of the truth, unfair, and inaccurate.

Failure to rectify the issue within the prescribed time frame may result in action being brought upon them for defamation of character and enforcement made through the regulatory body (Information Commissioners Office).

 

Your Sincerely

Me

 

 

I since received a notice from Equifax (from my account) updated on 13/11/09 with the new information,

 

New Information

HALIFAX Credit Card XXXXXXXXXXXX8127 0(Up to Date) As of 13/11/09

Previous Information

HALIFAX Credit Card XXXXXXXXXXXX8127 1(In Arrears) As of 05/11/09

 

This was notified to me via email from Equifax "This e-mail is to notify you that there has been a change to your credit file" I have yet to check with Experian but it would appear that my account has been updated I will keep you updated!

[Mr lex]

I do hope this works for you.

 

I am afraid to say it will only show as a 'satisfied' debt for the next three months. it should then be removed

 

Ideally, the 'Previous Information' should be removed at once.

 

Lex

[marek321]

Just to let you know it didn't work:(, my credit history with Experian etc still shows a late payment. I have as stated canceled my PPI, since then I am paying more interest, whats that all about. So now I have started a new cause and that is to claim back my PPI from Halifax card services. I have just sent of my Subject access Request so we will take it from there. I will keep you posted!!

[bairnpunter]

Once your status was updated, did your score change?

 

I'm going through a similar process. I cleared my credit card to £0 a few months ago but didn't notice that some interest was still to be calculated (the card had been locked away, and not used) to the amount of £8! I never expected to have to pay anything so missed a payment. Result is that this has declined my mortgage application. My fault, and I acknowledge that. Since set up direct debit for minimum amount.

 

Anyway, I spoke to my credit card company tonight, and they said that a letter will be sent to the credit score organisation, to say that my previously defaulted account is now fully settled, similar to yourself. I understand that my score will then change to reflect this, although I don't think the late payment notice can be removed as such.

 

This is the only late payment I have on my credit file, and I'm gutted it's put our house move at jeopardy. I'm hoping my score will be changed back to excellent.

[marek321]

Hi Bairnpunter, I haven't checked my credit score but all is well because I have just had a re-mortgage go through. I Have received a paperwork from Halifax Card Services which is my original signed application dated in 1999. You can clearly see my signature and date along with the PPI box pre ticked by an automated system!!!. I am still awaiting their reply!

[marek321]

Just received a letter off Halifax, this follows my claim to Halifax for my PPI payments back to 1999. I had received subject access request with my a photocopy of my original application, signed in 1999, the PPI box was already ticked(automated) so on the strength of this I made a full request for all the PPI paid.

 

-----------------

 

I refer to you recent complaint regarding the payment protection Insurance (PPI) on your Halifax credit card.

 

First on behalf of Halifax, Please accept my sincere apologies that you have felt the need to complain. All such complaints are taken very seriously indeed.

 

As Part of my investigation into the sale of your PPI, I have considered the information available to me.

 

Having done so, and in view of the fact that you are a valued customer, I have decided to pay you an amount which will put you back in the position you would have been in had you not taken the insurance. This is done without admission of liability and in full and final settlement of your complaint about the PPI on you card.

 

Your complaint has been referred to the redress team who will complete the relevant calculation within the next 5 days. Where the account remains open the redress will be paid directly onto the card account. The redress team will issue a separate letter providing further details of the calculation and the amounts payable.

 

I trust this has addresses your complaint fully, however you can of course contact me directly on the telephone number provided at the top of this letter should you wish to discuss any aspect of my review further.........

 

 

-------------------------------------------------

My account only stands at -£600, but I don't know as yet what the figures are going to be, any ideas who that works as a credit as I should be getting a few thousand at least.

[marek321]

Just phoned Halifax phone service and was trying to set up a direct debit to pay the Min payment so as to avoid missing any months payment, and to my amazement I am in credit to the tune of +£2000 with all my balance being available so that has cleared the £600 I had outstanding on the card. With this in credit how can I get this off the account so I can put it into my bank account, any ideas will be much appreciated

[marek321]

Received a cheque for £2700 which covers the full amount of PPI paid for the full duration, well suited:) not had my original query sorted but a good start, I will be soon be at the twelve month point anyhow so it wont have any effect on my credit score.

Edited May 21, 2010 by marek321