RBS - confusing default on my credit file

[Sproite]

Hi All,

 

I hope this is in the right place.

 

I'm currently looking to renew my mortgage, and this morning had the advisor come back and say it had been denied for bad credit. I immediately ordered a credit report from Equifax, and discovered a default from RBS from January 2015. I was not expecting this, as I had a 12 month payment plan set up with them, which ended in December 2014, and I foolishly assumed that that was it done and dusted, and asked them to close the account. For reference every payment was made on time, via Direct Debit. Around this time I was moving a lot, so correspondence was tough. I have had no notifications as far as I'm aware, and they have my correct address on file, (or so the credit report says).

 

As soon as I found out, I recalled a strange call two weeks ago from a recovery company, asking for my details with regards to outstanding credit - I contacted them, went through the security process, and I(I think maybe stupidly) paid the £268 balance, to change the credit report to settled, rather than Defaulted.

 

I now need to approach RBS, and try to have this removed from my file, as it seems to me like an admin error on either their or my part, I think strongly them. I haven't received any notification as I say, and the first I knew about this was the odd call asking for personal details two weeks ago, and then viewing my credit report today.

 

I've read around and there appear to be a few ways to approach this, ranging from the 'sympathy approach' - which I can't see working with banks, even though I've paid it off immediately on finding out it existed, through to sending letters asking them for evidence that they gave me 28 days to sort this out before it defaulted.

 

I was hoping someone could give me some advice on the best steps to take to get this removed, it seems such a trifling amount to have a mortgage declined - and it seems like madness that the mortgage lenders view a £268 default, the same as a £26,800 default. It's going to really affect myself and my fiancée, as it could stop us moving house for 4 years!

 

In a bit of a scrape here, and any help would be much appreciated.

 

Best Regards

[fkofilee]

SAR to RBS... Lets see what you can dig up.

[Sproite]

That's the best first step? Would you advise that first, or a letter to senior customer services, with a 'sympathy approach'?

[Sproite]

Also, is it worth a phone call direct to RBS to see if they will just remove the Default, and whether they agree with me? It seems like a long shot, but I thought it might be worth trying that before going down the rabbit-hole?

[AndyOrch]

Hi Sproite and welcome to CAG

 

The fact is the default stands irrespective of any agreed payment plan and whether marked settled or satisfied.......Default Markers must remain on your credit files for a period of 6 years (unless placed in error)pursuant to the ICO (Information Commissioners Office) guidelines.You could try the sympathy approach but I doubt it will get you anywhere....even mores so with this creditor.

 

Regards

 

Andy

[Sproite]

Hi Andyorch,

 

I assumed, probably foolishly, that a settled default would be better for the overall score that one outstanding, is that not the case at all?

 

Does this mean that I'm querying the default with RBS, or with the collections company (Robinson Way)? I'll send out the SAR to RBS, but I think it's worth trying a call to customer services, to try to sort this out. Even though in my heart of hearts I know it's probably fruitless.

 

I obviously follow the guidelines for requesting the information, if they don't provide it - when they do what's the game plan then? I believe they will have sent letters to an old address, possibly an old work address which I gave them while moving house. I did then ring and change the address, but I'm almost certain I didn't see a default letter, as I would have obviously paid it straight away. I then heard nothing from January to late September, which also means that the default won't disappear off my credit file for that extra length of time. I had a perfect record of paying off the overdraft until the January, and then suddenly it's in default, without me knowing there was anything left outstanding - does that sort of thing tend to work in my favour?

 

Thanks for the advice all.

 

Rhys

[AndyOrch]

The DSAR will state if and when a Default Notice or a Notice to recall the O/D was issued......possibly not to which address.

[Mike_hawk]

What were the stated terms of the repayment plan?

[Sproite]

@ Mike_hawk The stated terms as far as I aware, and remember - were that we split the remaining outstanding balance into 12 parts, and I pay it off over a year. Which the credit report shows I did, and on time. I then have a recollection of ringing RBS and asking to close the account, and that going through. I thought that was that done, and then I see this Default, and have collections ringing me. I feel I should have checked before I paid the £268 - because I honestly think it could be Account charges, or some other trumped up figure from RBS.

 

This is the problem - it was an old student account, I didn't use it for a while, and I just wanted it paid off. I don't bank with RBS anymore, and I stupidly didn't bother to check it was closed - I believed it was something i'd dealt with and forgot about it. I also moved house twice, and moved jobs around that period - so letters about the default may have come, but to what address I don't know. I'm positive I never saw any correspondance from RBS even saying I had an outstanding balance to be cleared.

 

I want to call them, maybe try to get someone high up in customer services, but I worry that I'll say something that might make my request to remove the default invalid, and i'll just be fobbed off - is that what people have experienced?

 

Cheers

Rhys

[Mike_hawk]

Anything from it reduced to writing or was this all agreed over the phone? It probably continued to encumber the account with interest and/or charges during the repayment period.

 

If nothing in writing I'd go with the SAR and hope that whoever you spoke to recorded the terms of the repayment plan and it shows up on any notes. Don't telephone it, if it knows what info you are looking for you can pretty much guarantee it will be redacted from any data request.

 

Oh and, RBS is a shower and I can't imagine you'll ever get this resolved with telephone calls.