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AIBU?

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Original poster

To ask bank to remove negative information?

29 replies

Rachelfromfriends1 · 16/12/2019 14:15

Posting for traffic, apologies.

Has anyone asked their bank to remove negative information (missed payments) on their credit report, as a goodwill gesture? Did you have any success?

I would go into the back story but I don’t want to bore you! I just had a minor hiccup back when I was 19 and I feel like although the information is factually correct, it’s unfair for a few reasons. It essentially creates the wrong impression of the situation. Eg ‘missed payment’ although partial payment was made. I have had an impeccable record with the same bank since.

OP posts:
ActualHornist · 16/12/2019 14:19

You can ask but they won’t. It is a factual record of your payments and you must have been over 30 days late for it to register.

If you sought help the second you knew you couldn’t pay and had a plan in place, they would have told you how it would register. If you didn’t seek help, then you should expect it there.

It falls off in 6 years - how long to go?

Summerandsparkle · 16/12/2019 14:21

In your situation it’s unlikely they will do anything as it wasn’t their error- it was you missing a payment. Even if you were young and didn’t think it through It’s just how credit works.

How long ago was it?

leghairdontcare · 16/12/2019 14:29

They have legal obligations to report accurately so can't remove it.

Letsallscreamatthesistene · 16/12/2019 14:30

Its factually correct. Thats what they need to report.

WishThisWasGin · 16/12/2019 14:35

Unless it was incorrectly reported, due to their error they cannot change factual information.

It remains on your credit file for 6 years. Normally for most purposes ie loans and mortgages one missed/late payment is not a deal breaker, especially if its not in the last 2 years.

WishThisWasGin · 16/12/2019 14:36

How many did you miss?

Original poster
Rachelfromfriends1 · 16/12/2019 14:46

Sorry for wall of text! 4 years ago at 19, my student overdraft was removed in September & asked for immediate repayment.

The problems that I have:

  • for September, the bank sent the letter regarding the removal of the overdraft facility/immediate repayment to an old address, although I had already given them my new address. I did miss the payment, but I wasn’t aware anything had changed re the overdraft.
  • for October & November, I made partial payments. Yes, the bank wanted it immediately paid in full, but I think listing these 2 months as missed payment is misleading when I paid a third of the debt each month. It’s noted as early arrears. I don’t think this necessarily gives the correct impression as the debt decreased by a third each month.
  • for December, the balance was completely paid off by the 02/12. Why is this month noted as a missed payment? It wasn’t even a partial payment like the previous 2 months, but a full payment. This month is listed as “serious arrears” due to having 3 months of “missed” payments, so has a more profound effect on my report.
OP posts:
Original poster
Rachelfromfriends1 · 16/12/2019 14:47

I should have paid it in full, but as a full time university student in London I had to balance this debt with my bills/rent. I should have spoken to the bank to formally ask if partial payments were accepted though.

I’m just trying to damage control for a future mortgage application. My current score is high across all CRAs but I don’t know how much weight they’ll give to this.

OP posts:
leghairdontcare · 16/12/2019 15:00

Are you going to apply for a mortgage in the next 2 years? It won't be there after 6.

BarbaraofSeville · 16/12/2019 15:12

You can add a notice of correction to your credit file if there are extenuating circumstances. I don't know if it will do any good - banks don't like people using overdrafts anyway.

But you say your credit score is high, and the longer ago the problem was, the less bad it is seen by lenders, and of course it will be totally gone in 2 years time, so whether it will effect your chance of getting a mortgage, or what rates you have access to, I don't know.

If you are in a good position these days, ie no overdraft, regular repayment of a credit facility like a credit card, saved a decent deposit, good affordability, then the overdraft issue might not cause any issues.

LadyFlumpalot · 16/12/2019 15:58

I wouldn't worry about it, honestly, it will fall off your record soon and it's not that bad anyway, I've passed numerous credit checks, including a mortgage one with a much more screwed up credit report than that.

If you are planning on applying for a mortgage then go through a broker, be honest, and they will find lenders who won't be fussed. If you are just worried about how it looks then you have nothing to worry about.

WishThisWasGin · 16/12/2019 16:19

That wouldn't prevent you getting a mortgage, especially if its in 2 years time.

As they made the initial error ie You had updated your address, and therefore hadn't recieved adequate notifications there is potentially room to get it amended.

You need to put in an official complaint, not ask for a gesture of goodwill.

State due to their error there has been a negative impact on your credit score, and you want them to put you back into the position you would have been if they had given you proper notification and the chance to contact them and discuss options.

It would cost you nothing to try, but I wouldn't worry if they reject it.

CuriousaboutSamphire · 16/12/2019 16:21

Just don't apply for anythng for 2 years. It will have fallen off by then.

ActualHornist · 16/12/2019 19:43

Your credit score means basically nothing. It’s the info on the file that does.

You can try and pursue an alteration on the basis of they made a mistake which they may consider. It’s a bigger deal to you than them. Be prepared for them to say no and you to have to take it to the FOS

I’d advise you to call their complaints team for their process and log a complaint with everything laid out chronologically. Be clear what you want as a resolution and they’ll be more likely to resolve it.

Original poster
Rachelfromfriends1 · 17/12/2019 12:40

Thanks for your advice.

I opened a dispute with Equifax just to clarify the markers on my report with the bank, that was before I posted here though! I will open a formal complaint with the bank too.

At the very least, I want them to remove December’s “missed payment” marker as that isn’t factually correct in any way. At least then I wouldn’t be recorded as having “serious arrears” in the past.

I managed to find the initial letter they sent me in online banking, so I can prove that they made an initial error too.

OP posts:
GetyourFaLaLasRight · 17/12/2019 12:51

If it's in your online banking then surely that means they sent a hard copy and an electronic copy? If so then it is your responsibility to check your online accounts as well as mail.

Overdrafts can be shut down and immediate payment requested so they haven't done anything wrong there, despite how unfair it may seem. Would you have been in a position to pay immediately had you received the hard copy of the letter yo your correct address? Partial payments and missed payments have similar impact on your credit file so I doubt them recording it differently would make much of a difference. If your payment history has been impeccable since this then it probably won't have as much as an effect as you imagine.

Original poster
Rachelfromfriends1 · 17/12/2019 13:04

so they haven't done anything wrong there, despite how unfair it may seem.

Find it odd that you posted that as I didn’t say otherwise, nor did I say that the removal of the overdraft was unfair. In fact I specifically mentioned “goodwill gesture”?

Also I noticed the change and began to make repayments once I logged into the app, so I did check online banking. If they managed to previously send a credit card statement from that month to the same address, they should have sent this letter to the right address too.

I would have been in a better position to pay had they sent the letter to the right address, as this would have been before I moved back to London and whilst I was still working over summer. I had more than enough money in another current account - had I been aware that they wanted the money immediately rather than within the normal repayment terms than I obviously would have budgeted differently at the time.

OP posts:
maddening · 17/12/2019 13:11

Only if it is their mistake and they return you to the point as if a mistake had not beenade, if banks went round willy nilly changing credit files as "good will gestures" it would undermine the whole purpose and integrity of the credit file system.

teentree · 17/12/2019 13:14

You have opened a dispute with Equifax and a complaint with the bank about what? Seriously, there is literally no complaint to make here.

Original poster
Rachelfromfriends1 · 17/12/2019 13:23

Seriously, there is literally no complaint to make here.

Would you mind explaining how they were right to record December as a missed payment? The overdraft was completely paid off at that point so that isn’t factually correct.

Also you can google goodwill gesture letters RE credit reports - there are many websites that give you the advice to speak to your bank. (Albeit this might be USA advice which is why I posted here first.)

OP posts:
GetyourFaLaLasRight · 17/12/2019 13:54

In your position I would send a letter of complaint, recorded delivery outlining your request and evidence that they sent the letter to the wrong address. There is no harm in asking for some goodwill and you have nothing to lose.

SpoonBlender · 17/12/2019 14:12

It won't matter. It's from years ago and your current high credit score already takes account of it. No lender is going to give a flying fuck about a missed payment during student years.

Vectura · 17/12/2019 14:21

You mention that the December charge is incorrect- but you also said that the debt was paid off by the 2nd? Is that right?

If the debt was still there on December 1st then, annoyingly, it counts.

I do agree with PP though that I doubt lenders will care- and by the time you are 25 it will be gone anyway.

teentree · 17/12/2019 14:54

Would you mind explaining how they were right to record December as a missed payment?

Meh. If it was due on the 1st and it wasn't paid it would have been correctly recorded as a missed payment by the 2nd.

Also you can google goodwill gesture letters RE credit reports

I don't need to google this Confused

MatildaTheCat · 17/12/2019 15:00

I made a really, really stupid error when transferring some money from my current account and ended up £2.5 m overdrawn for a very brief time. Absolutely unbelievable that this was even possible but it was.

I asked the bank to rectify the account details as it was money that had never existed and they should never have allowed the transaction to go through. They were also absolutely mystified but couldn’t do anything about it and it’s still there now.

Madness.