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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 2570
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I have a business and personal Cheque acccount with my bank

Customer Question

Hi I have a business and personal Cheque acccount with my bank for over a year and have a good credit profile and I am able to get credit accept with my bank, after doing some enquirers it appears that it's due to an old account that was in 2006 which was handed for collection and I was listed on the credit bereaus and after 5 years was removed, the bank says it's an old debt that was written off. What I want to know is how do I resolve this as it was for a personal loan that I couldn't pay then. Am I liable to pay of this account before I am able to apply for credit as this is affecting not only my personal credibility but also my business as I cannot apply for any facilities on my business name. Please advice.
Submitted: 22 days ago.
Category: Finance
Expert:  bkb1956 replied 22 days ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Based on the information you provided, this is an old debt that was written off. You do NOT have to pay anything on that account, and you can apply for credit. Since you mention that you have a good credit profile and you are able to get credit approval with your bank, you do not have to do anything about that old debt.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Customer: replied 22 days ago.
ok so I have spoken to my bank manager who says the old account is written off but is blocking me from applying for credit with them so how do I resolve this problem
Expert:  bkb1956 replied 22 days ago.

Does your bank manager have any suggestions?

Can you apply for credit with a different bank since it has been removed from your credit report?

Customer: replied 22 days ago.
He suggests me paying the account but cannot guarantee anything, the problem falls on my business as I cannot apply for facilities with another bank on my business account
Customer: replied 22 days ago.
I have applied for vehicle finance with another bank and was approved but as I said I cant on my personal and business with my bank due to this old account and if I move accounts on my business it will be regarded as a new account and will need to be opened for at least 6 months before it qualifies for any facilities
Expert:  bkb1956 replied 22 days ago.

You will have to decide if you want to take a chance with your current bank and pay the old account off OR open a new account and wait 6 months.

Customer: replied 22 days ago.
I do know that or I won't be asking this question, so basically you don't know yourself, you stated I do not have to pay an old account and that is correct by law so isn't the bank going against the law and banking codes of conduct.
Expert:  bkb1956 replied 22 days ago.

As an expert on Just Answer, I can give you information, but not advise you what decision to make.

You do not have to pay an old debt, but the bank certainly has the right to refuse credit for an amount that it wrote off.

The old debt does not appear on your credit report, so any "new" bank cannot refuse you because you did not pay that old debt.