Payday loan accounts & credit rating

[psmith14]

Hi all, been a while since i last posted about my issues with payday loan companies.

 

Fortunately i have managed to stay away from these companies but i was just wondering if simply having accounts with these companies will affect my credit rating.

 

For example, i still have open accounts with Wonga and Quickquid. I have no active loans out with them but is it worth ringing round each payday loan company (around 8) asking them to close my account?

 

Thanks in advance,

PSMITH

[renegadeimp]

If nothing has been recorded on the file and no searches have been made thrn it wont affect it.

[psmith14]

Hi renegadeimp

 

If this is the case, i shall just leave them open and not log in.

 

Will they not randomly check/search my credit file because i simply have an account?

 

Regards

PSmith

[renegadeimp]

They can check your file at any time, but they would need a good reason to do so. They could simply perform a general search that wouldnt be recorded, but if they were to make a table 1 search, you definitely need to get full complaints in.

[Heropanda]

My credit report has been ruined by Safeloans, because i've been an arse i've got 20 entries from them on my file, not one item with 20 months history but 20 lines with 1 month history. So check how they report it if i were you, if its per loan you might already be buggered...

[renegadeimp]

You need to complain about that. they should be adding one entry. Not dozens.

[Heropanda]

You need to complain about that. they should be adding one entry. Not dozens.

 

On what basis though? I mentioned it to them once and they just said each application is a separate credit agreement and therefore should be recorded, i didn't have the legal nous to counter that argument...

 

Looking through my credit file i can see that:-

 

Callcredit / Noddle

Quickbridge (Wonga)

Quickquid

Active Securities (247 Moneybox)

Microcredit

Lending Stream

 

All record multiple entries per account

 

and on Experian its

 

Lending Stream

Cash Bob

Safeloans

 

recording multiple entries.

 

Not sure on equifax

[renegadeimp]

Once account, one entry. Period.

[psmith14]

Thank you for your help regarding this.

 

Regards.

[acid53]

Hi, I've recently checked my credit file and noticed the same pattern with Wonga, Safeloans and Cashbob all recording multiple entries for loans. My Wonga aco**** is closed and I am coming to the end of a repayment plan with Safeloans and Cashbob. On what basis, can I approach them to advise them that it should be just be one account? thanks

[acid53]

any thoughts on what basis I should contact the lenders to ask them to remove the multiple entries? Renegade, I note your comment, one account, one entry. Could you elaborate a bit on this, please? thanks

[Ocelot0411]

I think its per credit agreement and I think that's what Renegade is driving at. So for example with Wonga if you havea loan pay it off then thats one agreement, if you take out another loan its a seperate agreement and therefore two entries. I don't think there is much you can do about that as they are in fact two seperate credit agreements. If for example though you have a loan with Minicredit you only have one agreement (a rolling credit agreement) so one agreement = one account no matter how many times you borrow from them.

 

There are other ways of getting them off your credit files though albeit a rather lengthy and onerous process. Worth it though.

[Ocelot0411]

Actually sorry I have just read Renegade's post again and he is actually saying one account regardless of how many credit agreements. i have to say I don't know if that's correct but it would be good if it was. Can you elaborate Renegade?

[citizenB]

Hi all, been a while since i last posted about my issues with payday loan companies.

 

Fortunately i have managed to stay away from these companies but i was just wondering if simply having accounts with these companies will affect my credit rating.

 

For example, i still have open accounts with Wonga and Quickquid. I have no active loans out with them but is it worth ringing round each payday loan company (around 8) asking them to close my account?

 

Thanks in advance,

PSMITH

 

In answer to your question - yes, they can and do have a negative effect on your credit rating, despite the fact that you might have paid them on or before time. The very fact that you even considered taking one out apparently gives the impression that you were in desperate need of a quick boost of funds at some point. Mainstream lenders are down scoring when it comes to mortgages and preferential interest rate loans and credit cards.

 

Have a read of the following. orfoster has been in contact with a couple of the companies asking them to remove their footprints as they misled him by advising that using them and paying them back on time would actually improve the credit rating when that couldn't be further from the truth. He has had success with one company and is persisting with another.

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?398164-Pay-Day-Loans-damage-to-your-future-credit-rating

[Ocelot0411]

That's precisiely what I am doing at the moment.

[acid53]

thanks ocelot - very interesting about cashbob, im about to escalate this now having emailed them 3 times but to no avail. what is the lenghty process of getting multiple accounts removed you refer to?

[orfoster]

thanks ocelot - very interesting about cashbob, im about to escalate this now having emailed them 3 times but to no avail. what is the lenghty process of getting multiple accounts removed you refer to?

 

Have you followed their complaints procedure? Does Cashbob advertise on it's site that it will/may/if pigs might fly improve your credit file?

[Ocelot0411]

I gave up on Cashbob responding so just went straight to the CRA and said why are you letting an unlicenced company record info on my credit files? Will be much quicker than waiting for a response from them. Have also emailed OFT to alert them to this.

In relation to the removing mulitple entries thing, first thing to do is CCA them and see what agreements exisit - I reckon if only one agreement (minicredit style, one agreement for mulitple loans = one entry). The other way of doing it is as Citizen B is alluding to above. Most of this lot have said that a payday loan will improve your credit rating - hogwash and misrepresentation if you ask me. Even if they didn't advertise that the fact is this is against the principles of fairness and transparancy as this is well known within their industry but they conveniently forget to mention it.

So complain, complain again, escalate to CEO, advise that this will go to FOS and Trading Standards, Advertising Standards authority, OFT and ultimately court. DONT forget your local MP and those MPs who are the main players in fighting the payday industry. This is such a political hot spud at the mo that I think this is the best time to be doing this. Simply do not back down and don't threaten the above DO IT.

[acid53]

thanks ocelot - i never thought about it in those terms but yeah one agreement should equate to single entry

[rodgerramjet]

Fascinating reading this thread. I've paid back all the loans but would love to see them removed.

 

Is it not correct that you can dispute the information on your report with the CRA and if the company don't respond within 28 days the information is suppressed ?

 

That being the case how likely are PDL companies to follow up on a dispute raised by say experian? and if they don't then voi la information gone from credit file.

 

Fanciful thinking maybe but worth a shot.

 

I was never advised that they would trash my file.

 

All my nightmares were paid in full and I sent letters about how I'd never use them again and if my details did come across there systems it was more than likely fraud and they wouldn't get a penny out of me.

 

Nothing to lose so going to chance it.

[PDLVictim]

That's a great idea. PDL are probably really busy with other things these days I will try this as well

[rodgerramjet]

I've been thinking more about this and peachy advertise in there website that they offer short term loans, yet in the t&c s it talks about an advance. Now like many folk and specially on the downward spiral of PDLs I never thought to check how the loan would be described as in the terms and conditions. Neither was it stated up front that the loan was classed as an advance and would be reported to CRAs as such.

 

Surely that's devious if not blatant lying about things.

 

This might be how I choose to fight this.

 

Any thoughts ?

[rodgerramjet]

Only company I would accept this from is wage day advance as the name gives all the info you need.