Credit scoring

[clarkey1]

I have recently recieved a copy of my credit score, and noticed there are a number of occasions, I have not paid them for one month.

 

In reality, I have checked my statements and can prove that I have only been late by 2 or 3 days and they have recieved the payment that month.

 

Have they got the right to record that I am a month behind with my payment, when clearly this is not the case?

[rbrears]

You are permitted to have your own comments recorded on your credit file. Do so and put the record straight.

 

Credit scoring can be particularly unfair in my opinion. I have a number of late payments on my file on my credit card going back to some two and a half years ago. The result is that I have a credit score in the "poor" category, even though the particular circumstances that lead to those problems are behind me a good two years ago and my payment history on the credit file clearly shows this.

 

Forget the fact that I own my own business that has over 20 million per year going through its client account and that I am a professional earning a very good salary. Credit scoring is a pile of shite in my opinion. As a result when I sell my house this summer I wil be forced to get a mortgage from a sub-prime lender for my next house purchase and I will pay a higher rate of interest because of late payments (no defaults or CCJs) recorded against me years ago and even though the particular debts were paid off early.

 

Dont you just love the banks?

[BankFodder]

Does entering a correction or comments make any difference to the credit score?

I have a feeling that it doesn't at all.

 

The banks' privilileged access - and consequent abuse of the system together with its evident one-sidedness is iniquitous.

It needs a separate campaign all of its own.

Actually I'm convinced that the only way to dismantle it is to attack so hard and so often the defaults which have been entered merely because of the failure to pay invalid penalty charges that eventually the banks and the CRA's realise that they have a massive liability on their hands and they decide to reform it themselves.

To achieve this one needs routinely needs to accompany court claims for return of penalty charges with allegations of breach of contract in respect of the entry of inaccurate information on to the register. If ever these claims are successful - either by default on their merits, it should be followed by an immediate attack on the bank and the CRA in defamation.

A few of these and things might start to move.

 

Every default entry on the register which refers to a penalty charge debt is a defamatory statement.

 

You may be interested to know that in the recent case of Disneyman v Nationwide, we were able to include in a Tomlin order a requirement that the NW take all reasonable steps the cleanse the register. This was a significant concession. It was not strong enough for my liking. I had originally set a penalty of £20,000 if they failed to to this within 4 weeks but the NW baulked at this and our time was too short (1 hr before the hearing) and Disneyman (quite rightly) did not want to lose the other payments which we secured from them. however, there will be more cases.

[Maxie]

I has this very same issues with a client and Land Rover. She had missed a few payment for the totally unacceptable reasona of being in hospital and being ill.

 

I wrote a very 'carefully' worded letter the there director of customer service (George Wood) and in essence said to him look, we can issue a note of correction but we both know, leander will never read them, and if they do they just carry no weight.

 

You see, deafault notices are credit file are given different codes depending on the type of default or arrear. In this case they had issued a several '1' codes denoting 1 month in arrears.

 

I did manage to get them to alter credit file to issues 'Q' codes instead of an actual arrears code. Now, when a creditor look at the credit file they will see that on some months there was a 'Q' or 'Query' on the account but no actual arrears.

 

I might be worth writing to them and asking, as your arrears were only minor, could they edit your credit file. Oh, I also got £250 in 'charges' to the account refunded as well

[clarkey1]

Dear all,

 

I am Still confused?

 

Are they Legally right in saying I am 1 month behind when it’s only 2 days?

 

Regards.

[seylectric]

You are permitted to have your own comments recorded on your credit file. Do so and put the record straight.

 

Not according to Equifax you're not! On several occasions I have asked for a "Notice of correction" to be added to a record; apparently the procedure is that Equifax contact the company to check that the information you have supplied is correct, and if the company say it isn't, Equifax refuse to add the Notice.

 

So effectively despite claiming to be impartial, they always take the company's side in these matters. You're damned right it's unfair!

[lee6370]

This information is automatically recorded with the credit reference agencies, that's why as soon as you are a day late it is sent off.

 

However you can delay the process, and give yourself an extra few days.

 

Under section 12(1) of the Data Protection Act, you have the write to prevent processing of data by automated means, I'm sure that this would cover banks automatically sending this info.

 

http://www.ico.gov.uk/eventual.aspx?id=694

[dave]

Does that mean, that I can demand that the decision to 'bounce' a DD payment due to insufficient funds, be carried out by a human?

 

Bank statement information being, of course, 'personal information'.

[lee6370]

It does, but be careful because this will become manual intervention and they can claim some justification for charging you.

[dave]

True, but they charge anyway ;-)

 

Which means of course, that if the charges don't go up for me, then they must be unlawful for everyone who HASN'T made the request.

[lee6370]

I like your logic.

[Spiceskull]

Not according to Equifax you're not! On several occasions I have asked for a "Notice of correction" to be added to a record; apparently the procedure is that Equifax contact the company to check that the information you have supplied is correct, and if the company say it isn't, Equifax refuse to add the Notice.

So, if the bank says the information they have supplied is correct, when it isn't, surely that is an outright lie. It also opens them up to a charge of misrepresentation and misuse of data, not to mention the issues of defamation BF is keen for us all to exercise our rights over...

 

See the steps I took to get my bank charges back.

Spiceskull v HSBC.

Thank you Consumer Action Group.

Read my blog.

 

[lee6370]

I agree with you, but the banks do have an agruement and they must act responsibly.

 

They have 2 choices

 

1. Record they data and if it's proved to be wrong remove it later.

 

2. Don't record the data in case it's incorrect.

 

They will agrue that if they go with option 2 and it was the wrong option, you might then get more credit, and fall deeper into debt before they can correct the error.

 

Therefore they go with option 1 every time and err on the side of caution.

 

However I think we can bring a case if you have notified them that you dispute the amount, and have them acknowledge that dispute and you then request they do not record any information since it will be false, in this case they should wait until the dispute is settled, to continue to record false informaiton under these circumstances could be in breach of the DPA.

[seylectric]

So, if the bank says the information they have supplied is correct, when it isn't, surely that is an outright lie. It also opens them up to a charge of misrepresentation and misuse of data, not to mention the issues of defamation BF is keen for us all to exercise our rights over...

 

This is what happens, though. Say for example you owe a bank £180 made up entirely of bank charges. You don't agree that the charges are lawful and you believe the bank owes you a total of £460 for the same, but unless you prove otherwise Equifax accept the bank's version. So if the bank doesn't accept it owes you money, neither does Equifax. They refuse to publish your side of the issue if the bank doesn't agree. So where's the impartiality?

 

I too believe it's defamation of character.

[CheeseOnToast]

You are permitted to have your own comments recorded on your credit file. Do so and put the record straight.

 

Credit scoring can be particularly unfair in my opinion. I have a number of late payments on my file on my credit card going back to some two and a half years ago. The result is that I have a credit score in the "poor" category, even though the particular circumstances that lead to those problems are behind me a good two years ago and my payment history on the credit file clearly shows this.

 

Forget the fact that I own my own business that has over 20 million per year going through its client account and that I am a professional earning a very good salary. Credit scoring is a pile of shite in my opinion. As a result when I sell my house this summer I wil be forced to get a mortgage from a sub-prime lender for my next house purchase and I will pay a higher rate of interest because of late payments (no defaults or CCJs) recorded against me years ago and even though the particular debts were paid off early.

 

Dont you just love the banks?

 

Sorry mate but you must have something else on your file, I have got a scatty credit history with a lot of missed payments upto 3months around 2-3 years ago, and missed payments of 2 months just 1 year ago.

 

I recently got a new current account, credit card, flexible loan with cahoot and a mortgage with halifax so maybe you should look into that mate.

[Sarrahk]

HI, i have 2 defaults on my creidt report (!!) nightmare but i dont know what i can do about them. One is from Egg which i think is completely unjustified as i have been repaying them consistently each month through debt payment plan i set up with Consumer credit counselling service (CCCS) two years ago and am now halfway to repaying the debt in full. Are they still justified in putting a default on my file when they are receiving money from me each month and have done so almost from day one (they have always received monthly payments from me although for a time i had an agreement to pay less than the minimumn payments) it seems like i have been punished for falling into financial difficulty two years ago???

 

The second default i have is from vodaphone (absolute sharks) which i am furious about as i paid the debt i owed in full to their collection agency! Even prior to paying off the debt i was giving them montly installments again through CCCS? Are they still justified in leaving a default on my file, surely this cant be the case when it was all paid off to their agencies ??!!

 

Help and tips on this would be much appreciated...

 

Skint Sarrah ! x

[seylectric]

Not much I can say because I know what a nightmare it is, other than ALWAYS pay the company direct - never deal with collection agencies, they can't do anything, not even take you to court because you don't owe them nowt.

 

I always refuse point blank to deal with a debt collection agency.

 

The trouble with defaults is that once you have defaulted they are entitled to say so on your file, and even if you make continued reduced payments in the future you are stiull technically defaulting because you are not paying the amount you are supposed to be paying.

 

The only tip I can suggest for the future is that you insist in writing that you will continue to make payments as long as they remove the default notice from your file. In theroy though not too much chance of it happening as you have to pay them whether they agree to it or not.

[Sarrahk]

aaahh i am doomed! That seems so harsh expecially when the debt is fiinally paid off like with vodaphone.. i think i may try and right to them with confirmation letter from their collection agency that it was paid off .. i hate banks and fat cat companies!!

 

When i am finally rich (! ha yeah dream on! ) i intend to hide all my money in a tin under my bed and never ever put it in a bank or big business again!

[Lizzy]

If the debts are paid contact the company in writing and insist they are showing on your credit report as SATISFIED. This will make a big difference as a defaulted account is rarely if ever updated. This means when other searches are made it looks like you still owe the money so you will certainly not get anymore. Also make sure they put the correct date on it WHEN YOU SATISFIED IT not when they decide to show it as satisfied from when you wrote the letter. If the account is satisfied they have to show it by law (but you usually have to ask).

 

Also I used to be an underwriter for a loan company (well known company) and was always told to IGNORE any notes on a file as anyone can make up what they like !!!! and stick it on. I have to agree reading some of the reasons, obviously I would'nt lend my money based on these essays (sometimes). And I had to pretend it was my money.

 

As far as I was told once a satisfied account is showing I would check to see if any other company had taken a chance on them. If one or two new accounts had been opened and running well then I could allow it too.

 

The only way I can see to get a new account is to unfortunately to take on a sub prime loan or finance who take a higher interest rate. It can be the only way unless you want to wait six years until the default drops off.

 

I know the person who started this thread needs an answer to his few days late payments. I don't know sorry.

[hwild]

I think i'v got about 6 defaults on my credit report!

[thecornflake]

You lot may find this quite interesting -

 

http://money.independent.co.uk/personal_finance/loans_credit/article357748.ece

[Sarrahk]

If the debts are paid contact the company in writing and insist they are showing on your credit report as SATISFIED. This will make a big difference as a defaulted account is rarely if ever updated. This means when other searches are made it looks like you still owe the money so you will certainly not get anymore. Also make sure they put the correct date on it WHEN YOU SATISFIED IT not when they decide to show it as satisfied from when you wrote the letter. If the account is satisfied they have to show it by law (but you usually have to ask).

 

 

Thanks this is useful i am going to write to vodaphone asap

[seylectric]

Persistence is usually the key; don't take "no" for an answer

[Sarrahk]

If the debts are paid contact the company in writing and insist they are showing on your credit report as SATISFIED. This will make a big difference as a defaulted account is rarely if ever updated. This means when other searches are made it looks like you still owe the money so you will certainly not get anymore. Also make sure they put the correct date on it WHEN YOU SATISFIED IT not when they decide to show it as satisfied from when you wrote the letter. If the account is satisfied they have to show it by law (.

 

anyone know which piece of legislation they are obliged to show the account as satisifed under?

[clarkey1]

This topic was closed on 03/07/19.

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