Karen
“Incredibly quick response, complete understanding of my needs and appropriate action taken for the support I required”.
The issue
This case study focuses on clients Karen and partner Abdil, expectant new parents and how we managed to help them remove a Default Notice from their credit file. Our clients were planning on purchasing a new car on finance from their bank in time before the birth of their child. In advance of their application for a loan, our clients obtained a copy of their credit file from the credit reference agency. It was noted that an adverse entry had been made in the file. A Default Notice for £12,000 had been placed against their joint account, in their names on a credit report. Our clients did not have any recollection of ever receiving such a Notice from the bank in respect of a previous loan which had been paid off some time ago.
Our clients wrote to the bank requesting a copy of the original Default Notice and any Deed of Assignment if the debt had been sold on to a third party. The bank sent a response to our clients informing them that, after checking with the credit reference agency, it showed when the account was satisfied via a full and final payment. The Default Notice was also marked as being “Satisfied” in the credit report. It was clear from the bank’s response, citing difficulties to delays in obtaining relevant information, and merely repeating what our clients already knew, that they were deflecting from the real question raised by our clients’ letter to substantiate on the information requested about not ever receiving the original Default Notice from the bank. The request for information was made no less than three times to the bank over a period of four months. On each occasion our clients received the same reply. By this time, the odds on getting the bank to remove the Default Notice from our clients’ credit report appeared to them to be futile.
The solution
Karen and Abdil approached us to seek a solution to the matter. We realised that from the written responses to our clients, the bank was deliberately prevaricating and it had become clear that the correct paperwork and procedure had not been followed. We requested a deadlock letter from the bank. Our intervention prompted the bank within days to confirm that they were not able to obtain copies of the original account documentation of the Default Notice.
The outcome
There had been a clear breach on the part of the bank of their systems and procedure, which had not been correctly followed.
We forced the bank to remove the Default Notice from our clients’ credit file. They in turn notified the credit reference agency of the correction to be made to our clients’ credit file
After six weeks we advised our clients to order a new copy of their credit file. The credit file showed that the credit reference agency had removed the Default Notice from the credit report.
Our clients received an apology from the bank.
Karen and Abdil were able to move forward to obtain a new loan to purchase a motor vehicle on favourable credit terms from the bank and all in time before the birth of their baby
If you require help, we would be happy to help, just connect below for a free initial no obligation chat or call 0333 3444 945. Alternatively, if you know someone who might be interested share this with them.
Comments