Barclays’ error has trashed our credit ratings

The bank falsely claims our mortgage repayments are late, and can’t seem to rectify the mistake

We have a joint mortgage with Barclays but have just discovered that for the last 11 months the bank has been wrongly recording that we paid late. This is completely false – our payments have arrived on time – but it has trashed our credit score. Despite us repeatedly telling the bank it has made a mistake, its staff seem incapable of rectifying the problem, or even stopping it happening the following month.

Over the course of the last year we have had our overdraft limits reduced to negligible levels by Barclays and other banks. My wife had her credit card cancelled by Halifax with no explanation. I’ve had my credit limit reduced with PayPal. When I checked with Experian I found that my credit score had reduced from 980 to 480. Our complaints handler at Barclays admitted she was dealing with other similar cases. I wonder how many others are in the same boat but completely unaware of it. Can you help?
CS, Norwich

I am really shocked at Barclays’ laissez-faire approach to your complaint, given that the financial consequences of this could have been disastrous. Had you been trying to move house or get a business loan or similar, no company would have touched you. After I raised this with the bank, it did at least move swiftly to resolve the matter.

A Barclays spokesperson blamed the problem on an “internal error”. He says: “This is a rare occurrence of arrears being incorrectly recorded on our customer’s mortgage. We accept that on this occasion the service our customer received fell below our usual high standards. Appropriate steps have been taken to ensure the information held by the credit reference agencies is accurate.”

The bank has offered you £500 in redress, which doesn’t seem enough to me. I would be asking for double that, given that the bank has in effect labelled you a bad bet to other institutions. In the meantime, like you, I wonder how many other Barclays mortgage customers have this problem.

If a bank or credit card mysteriously cuts your overdraft or credit limit, it is worth checking your credit file promptly. Have any other Barclays customers suffered the same fate? Email the usual address.

We welcome letters but cannot answer individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number. Submission and publication of all letters is subject to our terms and conditions

Contributor

Miles Brignall

The GuardianTramp

Related Content

Article image
Barclays mortgage customers face ‘nightmare’ of poor credit ratings
Guardian Money hears from people trapped on high-cost deals after bank wrongly recorded defaults on files

Miles Brignall

13, Nov, 2021 @7:00 AM

Article image
Barclaycard slashed my £6,500 credit limit to £250
The only reason we can think of is that we are in a dispute about a £500 refund for a cancelled flight

Miles Brignall

26, Apr, 2021 @6:00 AM

Article image
Barclays continues to wreck credit rating with mortgage claims
Despite a promise to rectify its mistake, the bank claimed six more times that a reader had paid late

Miles Brignall

26, Oct, 2021 @6:00 AM

Article image
I sent money to a friend using Barclays’ Pingit app, but it never arrived
An international transfer of £792 in euros in May still hasn’t turned up in my friend’s account

Rebecca Smithers

25, Jun, 2017 @5:59 AM

Article image
More than half of UK households fear losing savings in Covid crisis
Many low-income families are struggling to pay bills in Covid crisis, survey reveals

Hilary Osborne Money and consumer editor

23, Jan, 2021 @8:00 AM

Article image
New year cash: give your finances a makeover as we charge into 2021
With our future feeling uncertain thanks to Covid, now is a good time for a review

Hilary Osborne and Miles Brignall

09, Jan, 2021 @7:00 AM

Article image
Why won’t Barclays let me cancel my direct debit?
The bank insisted I had to tell the ‘merchant’ involved to confirm the cancellation

Miles Brignall

16, Jul, 2018 @6:00 AM

Article image
I transferred £10,000 into the wrong account – how can I get it back?
Somehow I managed to type the wrong sort code when transferring my redundancy payment into a new savings account

Miles Brignall

16, Jan, 2018 @7:00 AM

Article image
Chased for a tiny Halifax debt – but only after it let it spiral into three figures
I haven’t used an account for 20 years, and suddenly it wants more than £100 from me

Rebecca Smithers

28, May, 2016 @5:59 AM

Article image
Barclays refuses to hand over £4,000 after Brexit account closure
My mother in Italy was told her account was to be closed after 40 years. Now she can’t retrieve the balance

Miles Brignall

26, Jul, 2021 @6:00 AM