Credit limit on closed credit card account

[caro]

I've got a few credit card accounts which I closed when interest rates went up and am now paying off at the original rate. On my noddle report they show my original credit limit although a lot has been paid off and I can't spend on them now. Last year I was declined a loan which I wanted to pay them off at a lower rate, but the lender declined it as it was considered that I could over-extend. I offered to let the bank pay them off directly but they can't do that.

 

More recently I noticed that sainsburys cc were still showing a temporary address I lived at when my house flooded a few years ago. I've been getting statements to the correct address but for some reason sainsburys have it wrong on noddle. It occurs to me that being associated with the rental property might be having an adverse effect on my credit rating.

 

I rang to get the address corrected but they couldn't help by phone and suggested I wrote to customer services. I did this on Friday and put it as a complaint, and while I was at it complained about the credit limit of £2,900 that I can't borrow, when I owe less than £800.

 

Got a phone call today and have emailed a copy of what is on noddle and they're looking into it.

 

I really do think it's wrong that they show a credit limit that no longer exists. I'm going to see what happens with sainsburys, and then have a proper go with the other 2 I've got if it works out.

 

Anyone else noticed this and tackled it?

 

Any comments or advice welcome.

[fkofilee]

Well technically the information showing on all 3 CRAs should show the CC as closed but not settled if that makes sense.

The Credit Limit should show 0 - Technically.

 

Have you thought about disputing it with the CRAs and also a NOC? They can be very helpful in this situation.

[caro]

I tried to dispute the address on noddle but there wasn’t a suitable option on my file, so thought I might just as well go straight to Sainsbury’s about it, and I had thought that if I wasn’t happy with the result I’d contact the ICO and FOS.

 

Sainsbury’s have just phoned again and are going to put the address right. They also said it shows as open although I can’t use the facility (I know that). He said that it looked good that I was such a long way from my credit limit if I applied for more credit, but I explained that it had worked against me when I applied for a loan as my bank thought I would then have access to too much credit. He asked what I wanted it set at and I said the amount I owed. He pointed out that it would appear that I was up to my limit which would look bad to future lenders so I settled on £1k as I owe £766. He’s going to investigate further and get back to me later.

 

I'm not convinced about whether a closed account with no limit will look better than an open account, so want to see if there’s any impact on my credit score first by removing an address to a rented property, which may have had tenants with all sorts of problems, when I own my own house albeit with an up to date mortgage. I know a credit score is pretty meaningless, but at least it’s some kind of a guide.

 

He’s also looking into the fact that I had to write in, when I phoned about this a few weeks ago, as they should have dealt with it over the phone and not put the obstacle in my way of having to write in, and that part of my complaint has been upheld. I hadn’t complained about that but if they decide to compensate me for it I shan’t complain!!

Edited April 28, 2015 by caro

[caro]

Had another call. Because the account is closed they can't change the credit limit. No real explanation why. I said I'd be contacting ICO and he said I could contact fos. I informed him I'd be contacting both. He didn't seem to understand why so I said it is because I believe the data isn't properly reported. I'll await written confirmation first.

 

The good news is that because the address was wrong and they didn't deal with my complaint on the phone they're sending a cheque for £75 compensation.

[fkofilee]

Good One Caro... Why not go after them after the account is closed...

Get a correction put in to show £0 when the account was closed but still owing?

You can do that, i did with Lowell...

[caro]

How did you manage that? I can see that if the OC sells it you owe them nothing, but why did Lowell do it?

[fkofilee]

Well I said that they are still reporting my CCredit Limit as £500, they agreed it shouldnt be showing that so they removed it completely in the reporting. Strange how they do it.

[caro]

Hmm. Curious that.

 

Question is, if I have a zero limit, how would that look to a prospective lender if I've still got an outstanding balance?