Shopper’s credit crunch nightmare
Homeowner faces £6k burden
I can’t believe it...the impact this has had on my life
DebbieWilbraham has had her credit score wrecked by a minor mistake – now she wants to warn others about the “nightmare” consequences. A £29.99 purchase made on her Argos store card 12 months ago has ended up costing the education administrator from St Andrews at least £6,000. “I can’t believe something so minor has had such a major impact on my life,” said Debbie, 52. “It has been a nightmare.” In February, Debbie was told that £69 was outstanding on her Argos account, relating to a £29.99 purchase made five months previously, plus late payment fees and interest. Debbie questioned the figure, reminding the catalogue retailer she had been making regular monthly payments, which she was able to prove through her bank statements. However, the previous summer, Debbie had transferred £50 to a friend’s Argos account as a favour. It transpired that all Debbie’s payments thereafter had been credited to her pal’s Argos account rather than her own. The firm accepted that Debbie’s subsequent payments, starting with the £29.99, had gone into the wrong account, and eventually refunded her £169. However, unbeknown to Debbie, by this time a default had been recorded on her credit report. “While all this was going on I was in the middle of a mortgage application,” she said. “I had been accepted in principle but the broker pulled out when I failed a credit check.” Debbie eventually did secure a mortgage – but had to pay a whopping 8% interest rate because her credit rating had been damaged. She has so far spent about £6,000 cancelling her original mortgage application and arranging a new deal. Debbie also knows her new high-interest-rate repayments will cost her “many thousands of pounds” more than a regular deal would have in the years to come. Argos insisted it followed the correct procedures. And when Debbie contacted the Financial Ombudsman, her complaint was not upheld. Following the decision, Argos wrote to Debbie’s solicitor last month stating they had “nothing further to add.” A spokesperson for Argos Financial Services told Raw Deal that Debbie should have contacted the company sooner, adding that it was important customers responded to correspondence “so that they can challenge any issues in a timely manner”.