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Credit worthiness, banking, and matters relating
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Anonymous Post
Posted: 24 September 2010 20:21:53(UTC)
#1
Anonymous 1 needed this 'Off the Record'

Can you advise how to improve the credit rating of the following.
An elderly lady, working in a responsible financial position.
Problems-Two so called defaults.
Default 1. With mobile 3 Co.
She was induced into a contract by offer of cash back. Cash back Co failed. 3 insisted their contract was not linked. She ended the contract and tried to pay them off. They could not agree the sum, less than 100(one hundred pounds) and advised Credit Agencies of default.
Default 2. After a boundary dispute she had to pay the so-called "expert." She considerd an appeal but was advised it would cost over 100,000(one hundred thousand pounds). She missed the pay by date, but wrote in to the Surveyor an FRICS, to expect a cheque within a few days. He immedately took her to court and made her pay some 1,000(one thousand ) pounds extra in Court fees/so called collection. This was paid within a few days and a receipt obtained.
She has accounts at two banks, with Credit and Debit Cards, but because of international transaction requirements she wanted to open a bank account with HSBC. Answer two defaults-No way.
To add insult to injury, she recently applied to Tesco for a Card to be able to buy cheaper petrol. After Credit checks, Answer-No way.
She thinks the world has gone barmy, and hates banks, solicitors, and other professionals in services! Can you blame her?
Having checked her Experian Report, she questioned her credit rating, but was advised that the Commossioners required the details to be kept on record for six years!
Can anybody help her? and who could be contacted to bring about change to such madness?
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Tatenda Patmos Mkwaturi
Posted: 26 September 2010 15:09:08(UTC)
#2

Joined: 16/04/2010(UTC)
Posts: 3
Unfortunately there is very little she can do with those defaults. She just has to clear it up with the guys who said she had defaulted. Or wait 6 years after which the defaults are removed. Will be very hard for her to open a new bank account or get a credit card with those two defaultson her credit file. Actually one guy from Barclays(l was trying to open a bank account with £300 overdraft, l failed,one default), told me its the same with all banks. Any default and your chances of getting credit from the banks are next to nothing.
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Anonymous Post
Posted: 26 September 2010 16:31:46(UTC)
#3
Anonymous 1 needed this 'Off the Record'

TPM
Thank you for your response.
However it only helps to show that the system the banks operate is totally wrong.
Wih respect to Default 1.
It seems that she cannot have an argument over her contract, but have to pay up whatever they decide. Hence the reason why just about every contract you now sign is a Credit Agreement regulated contract, usually with the condition you pay by Direct Debit.
If you do not pay, as they want, you are blocked from having Credit for six years. Why did they not take her to Court to resolve the matter but are effectively blackmailing her into payment by blocking her credit.
With respect to Default 2.
She made the payment within days. What else can she do? Does this not count.
Instead of having sensible rules we seem to have totally stupid ones, like the six year rule. The same sentence no matter what the crime.
The banks seem also to have stupid rules as they affect bank accounts(she cannot open a new one) and get credit.
All that happens now is that we have lots of loan sharks, which everyone talks about, but who prey off stupid rules.
TIME FOR CHANGE-COALITION PLEASE NOTE..
AVAILABILITY OF CREDIT IS NOW A MAJOR ISSUE.
CITYWIRE COULD WE HAVE A FEATURED ARTICLE ON THE SHORTCOMINGS OF CREDITWORTHINESS AND ITS INTERPRETATION BY BANKS AND OTHER FINANCIAL INSTITUTES.
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busy bee
Posted: 27 September 2010 10:10:35(UTC)
#4

Joined: 06/09/2009(UTC)
Posts: 124
I have a great deal of sympathy but.... one has to work really hard at keepign a good credit record. Life is not fair - never was and never will be. I am (capital letters) angry at Equitabel life but I am stuck and have to make my own way. The advisor lied, and I was a fool to believe him. I also hate paying useless advisors (and more and more of them are useless) ..... but what does one do - complain yes, but Never Never do anything to harm your credit rating ...perhaps its a lesson - threaten to destroy the next persons ?
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THOMAS EAVES
Posted: 27 September 2010 11:58:32(UTC)
#5

Joined: 16/09/2009(UTC)
Posts: 3
I Can fully appreciate the lady's position.
At some point in everyones life, things do not go to plan, matters outside ones control can inflict some long term damage.
At the moment, credit is very tight and more and more people, even Professionals are suffering, if they have over exposed their position.

If she has been treated heavy handedly, she would have been better off, if the Summons that arrived had never been found, lost maybe...
Then, provided she had the funds to settle the debt, apply for the judgement to be set aside, which in turn would turn the clock back, the case would be re-heard and 14 days given to settle the debt.
Judgement removed. problem over.
Pity for her was actually receiving the Summons and acknowladging it.
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Anonymous Post
Posted: 27 September 2010 18:18:08(UTC)
#6
Anonymous 1 needed this 'Off the Record'

re Busy Bee-Never do anything to harm your credit rating
Seems to me that in the modern environment of a multitude of Credit Agreements that means paying anything they ask you to pay, or otherwise not getting credit for six years, if they chose to report the so-called default, instead of taking you to court.

re Thomas Eaves.
The lady concerned never had such an issue to deal with and therefore dealt wih it as an amateur, obviously to her disadvantage.
Since then I have realised that there are many ways round such problems.
For example I have been a victim of such get out.
-Dealt with a business, would not pay. Took them to court was awarded five thousand pounds in costs,damages etc-successful Court Case. On the last day the payment was due the company went into admnistration. Almost the following day the businesss was bought out by the spouse of the sole business director, to continue happily ever after.....
My Solicitors advice was that I am unlikely to get anything. A year later I have not had anything and probably never will. However the credit rating of the two spouses continues to be as good as ever.

Coming back to Busy Bee´s point
We should not only complain, but demand CHANGE for the better.
The six year rule as relating to the lady´s matters as above, is in my opinion, totally stupid.
Credit rating should only be one test, not used in isolation of reality.
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