High street bank fraudulent activity

[littlebitlost]

Hello kind people!

 

Long story short, it sounds unreal but I assure you it certainly is true.

 

In 2007 I took a loan from a high street bank

I originally applied for 7k.

Then decided to round the amount up to 10k, which they happily agreed to do and the money was in my account the same day.

However, the next day the bank paid another 10k into my account (!)

 

I went to the bank branch where I took the loan from and they simply said it was a mistake and removed the extra 10k.

 

Recently I have received a letter from debt collectors asking for that virtual 10k which I have never applied for and never taken.

It turns out that the bank still had that virtual 10k on my account as a loan!

 

Now the debt collectors backed off after I asked them to get that mess sorted with the bank and apparently they're awaiting the bank's response.

 

My question is what will be the reasonable compensation for messing my credit score with a virtual 10k debt and all the hassle they have caused me for years?

Should I take this to small claims court or any other court?

 

To me this is a full on fraud as the bank blatantly refused to remove this virtual 10k although there has never been a loan agreement on that and asked me to pay the virtual loan which I have never asked for. The 10k has been withdrawn back from my account within an hour after I reported their mistake back in 2007 but the amount has been still held on my record

 

All help will be greatly appreciated.

 

Lots of love

 

Littlebitlost

[maroondevo52]

Does this £10k show on your Credit Files, have you statements showing this £10k ?

[littlebitlost]

Hello maroondevo52

 

Thank you for your message.

 

Yes it shows on my Experian credit record. It's a farce, they messed up my credit score with some virtual loan I have never taken or asked for and into a tune of £10,000! It's just hard to believe.

 

I have spotted this a year ago and asked the bank to remove it but they refused, saying that I owe them that 10k!

 

I still have a big pile of statements I requested before closing my account with them and I am pretty sure that this virtual 10k is shown as in and out on there.

Most importantly there was never a loan agreement for 20k. I have only applied and agreed to take 10k.

[citizenB]

You would need to prove any damage to your credit reputation.. eg, higher interest rates, refused loans, mobile phone contracts et.

 

Take screen shots of your credit file with the virtual loan showing as a defaulting account.

[renegadeimp]

Also, ignore the DCA. They have no rights and are probably the bank wearing another hat anyway.

[citizenB]

You might also want to send a Subject Access Request to the bank - it will cost you £10.00 and they have 40 calendar days to provide this information.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?406188-DWP-Subject-Access-Request-From-(SAR)-**Updated-March-2014**

 

Although you say you still have the statements, you might find something on the communication log/diary of events that confirms that you have pointed this error out previously and yet the bank and subsequently a DCA have been messing with your credit file !

[littlebitlost]

Thanks guys,

 

The amount is there on my Experian report and the fact that the DCA are asking for it with a letter is a proof enough that the amount is there on my file.

 

I don't think I need to prove any refused loans as the damage with a fake TEN THOUSAND pounds on my account for a few years and it simply is a FRAUD.

 

If any of us did that we would be in jail. I need yo make sure they learn the lesson hard way and compensate this ridiculous mess with a reasonable amount.

 

 

With regards to the clowns from DCA I have dealt with them before. Thankfully with some priceless help from kind people on this forum. I have also proudly donated to keep this amazing service going and will not hesitate to show my support again once this farcical fraud case is resolved in a satisfactory way

[littlebitlost]

Hey citizenB,

 

Thank you again for your kind interest and replies.

 

Just to confirm that the account is indeed in default. I have asked Experian to contact the bank on my behalf last year, which they kindly did.

They provided me with a direct telephone number for the bank. I have spoken to the people in the bank and explained them the situation, pointing out that it is their mistake but they blatantly refused to listen to my explanations and stated that they categorically expect me to pay the disputed 10k.

So as you can see I have tried to sort this out peacefully and gave them the chance which they refused.

 

It is damaging enough to have a virtual £10,000 sitting on your credit score for a few years and I don't think that this is acceptable or excusable.

It has indeed prevented me from even thinking about applying for any loans or even changing jobs.

What would be the point if my credit score has been reduced to "very poor" by the bank's fraudulent activity?

[BankFodder]

If you want to deal with this matter and maximise the compensation that you might get, then you will have to do deal with it methodically and prepare your case thoroughly.

 

You say that you don't need to prove any refused loans or anything simply because of the principle that this £10,000 has appeared on your account. I'm sorry to say that you are wrong.

 

If you do not provide thorough evidence of the damage that has been caused to you then although you will get some compensation it will be just a token.

 

Before you take any action here, you need to start assembling as much information as possible so that you are able to explain to a court exactly what has happened.

 

This means that you need to begin by sending an SAR as you have already been advised above. You also need to list out here the way that you have suffered – either in terms of actual losses – meaning costs that you have incurred, the damage to your credit file in terms of how this might have resulted in refused credit or more expensive credit or lost opportunity for instance to buy houses or other items that you needed.

 

You also need to explain how this matter has caused you any distress if you are going to bring an action under the Data Protection Act.

 

If you are prepared to go about this in this detailed and structured way then you will put yourself in a position where you can win your case without too much trouble and also get the most compensation possible.

Also, you need to stop using the word "fraud" unless you are able to show real dishonest intent and dishonest activity.

 

Using the word "fraud" in court cases tends to make judges very suspicious and tends to put them off in the absence of any proper evidence.

 

At the end of the day this is probably bungling by the bank – and this is not at all unknown, in fact it seems to be extremely common.

 

Stick to the fact that they have breached their contractual obligations to you by mismanaging your account and carry on in a levelheaded and businesslike way and you will maximise the likely outcome for yourself.

[littlebitlost]

Thank you for your input BankFodder,

 

It certainly did cause a severe distress as having been asked to pay back £10,000 which I have never actually received or applied for has put me under lot of stress.

 

I will send the SAR to them and await for their reply. Thank you for this advice.

 

Wouldn't the fact that my credit score has been reduced to the lowest possible, be enough to prove that it has put me off from even applying for a mortgage (which I have asked for previously, not officially in writing but during a chat) or any other loan? This is pretty much self explanatory and any person with a common sense wouldn't be asking for a loan or a credit card with such a low credit score. It would simply cause even more damage.

 

Finally, how about some free advertising for the bank in question and exposing the story to media? Surely it wouldn't be in their interest to get this exposed.

It is ME who has been a victim here. I really don't think that I need to justify my claim to be compensated for their greediness and nothing short of a fraud.

Why should we let these criminals get away with their extortion practices?

It's unacceptable.

 

Thank you for pointing out that the 'fraud' isn't the right word to use in this case. It's based on my experience with the bank during our telephone conversation, when they absolutely refused to listen to my explanations and didn't even want to check any of their records.

It's that behaviour that prompted me to think that they are doing this deliberately.

Edited March 23, 2015 by littlebitlost

[BankFodder]

As you have been with us since 2009, I'm sure that you are familiar with our customer services guide. Did you implement any of the advice in that guide when you are dealing with them on the telephone? If you did then you will have all the evidence of the telephone call that you made. If you didn't then you better try and understand why you didn't.

 

Not applying for a mortgage is not evidence of anything. If you can show some proof that you intended to move or intended to remortgage and you decided not to then maybe that will assist your case. However, judges are always suspicious of awarding damages for these kind of things. You need to make a case.

[littlebitlost]

Thank you BankFodder,

 

I have been suffering from severe depression during the time I made that call and haven't recorded it, didn't take the name neither, I was just extremely upset and wanted it to be all over.

 

Oh well, thanks again for all the advice but I am not letting them get away with it and if it takes exposing them to media I won't hesitate to do so.

They need to learn to respect their customers.

It's not acceptable that the bank can ruin someone's life for a few years and simply say 'oooops sorry! It was a mistake.'

I'm not having it.

 

Simply speaking, they though they could milk me out of £10,000 so why don't I apply the same way of thinking and ask them to compensate me for the amount they tried to take away from me?

 

I will ask them to come up with a reasonable compensation, out of court settlement first.

[renegadeimp]

Did you take bankfodders advice on board? He's probably one of the most qualified people on this site to give you the advice he has. You cannot simply ask for a random amount of compensation. You would be laughed at.

[SabreSheep]

Compensation is based on LOSS

 

To get compensation you have to prove you have LOST something

 

What ifs, maybes etc are not loss based. You have lost nothing.

 

Loss of oppertunity must be proved. EG mortgage refusal

Or being given credit at a higher rate BECAUSE of their mistake.