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Removal of successfully settled payday loans from credit report


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hi all ..

.this is just a quick email really but

 

im trying to remove successfully settled payday loans from my credit report

as they are stopping me from getting a mortgage.

 

I thought it would be useful to keep you posted

I found this email on the CAG forums, copied in the ICO, FCA and my local MP and sent it off..

..now to keep my fingers crossedxx

 

Dear Wonga.com/Experian,

 

I have used your service a number of times over recent years, always repaying my loans on time and in full.

 

I have never been late with a payment, or defaulted on a sum.

A large part of my decision to use your service was your promise

on your website at the time that you would report my good conduct to credit reference agencies,

and this would improve my credit standing.

 

I kept faith with my part of this agreement and paid all my debts to you on time.

 

At the time, your services showed upon my credit file as “Loan”,

and my full and prompt payment of account did indeed have a positive impact on my credit file.

 

However, it seems that since then, yourselves or your agents Experian,

have decided to list them separately as “payday loans”,

and this has now been quoted to me by other lenders as the reason for them declining my applications,

and has in fact now cost me a mortgage and the home of my dreams.

 

As such, I feel I am being made to suffer undue hardship because of this retrospective change,

especially as at no time did I breach any agreement with yourselves,

and always met my promise to pay.

 

Note that this change means that the advertising you ran at the time

stating that use of your services would improve my credit rating is now incorrect.

 

As I entered into an agreement with you on the basis of this advertising,

I believe this has formed a collateral contract.

I also believe that this retrospective change is a breach of the FCA’s principle of Treating Customers Fairly.

 

There is no requirement in statute or otherwise for you to report the performance of my account to any 3rd party,

this is just something you have taken the decision to do.

There is no law or statute preventing you from removing this information from my credit file.

 

I would like to request you remove all settled accounts from my credit file,

as a goodwill gesture, in order to resolve my complaint.

 

I look forward to hearing from you.

Edited by citizenB
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There is no harm in trying. Please do let us know how they respond :)

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Good luck but don't hold your breathe.

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first time I've ever heard of a mortgage company refusing a mortgage

'because' the OP 'had' a PDL.

 

 

if the loan was administered properly , as it was, there should be no reason to refuse the mortgage.

 

 

what are they going to do next,

refuse a mortgage because someone had a car loan years ago.

 

 

then where will it lead?

 

 

you cant have any passed history on your credit file

else you cant get a mortgage?

 

 

then they'll say

'you are a risk to us, as we cant see how you've managed you finances in the past

because your CRA file is blank!

 

 

somethings not right here.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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  • 2 weeks later...
first time I've ever heard of a mortgage company refusing a mortgage

'because' the OP 'had' a PDL.

 

 

if the loan was administered properly , as it was, there should be no reason to refuse the mortgage.

 

 

what are they going to do next,

refuse a mortgage because someone had a car loan years ago.

 

 

then where will it lead?

 

 

you cant have any passed history on your credit file

else you cant get a mortgage?

 

 

then they'll say

'you are a risk to us, as we cant see how you've managed you finances in the past

because your CRA file is blank!

 

 

somethings not right here.

 

 

dx

 

The OP is correct. Mainstream Mortgage Lenders (High Street Banks, Reputable Mortgage Companies) will refuse you a Mortgage if you have taken out a Payday Loan. There are a few that may lend providing you have had no more than 2 Payday Loans.

 

This is because they see you as someone who cannot manage their finances and cannot get a Personal Loan from a Bank and have resorted to high interest short term loans. It does not matter to them whether it was an emergency or not.

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  • 1 month later...
hi all ..

.this is just a quick email really but

 

im trying to remove successfully settled payday loans from my credit report

as they are stopping me from getting a mortgage.

 

I thought it would be useful to keep you posted

I found this email on the CAG forums, copied in the ICO, FCA and my local MP and sent it off..

..now to keep my fingers crossedxx

 

Dear Wonga.com/Experian,

 

I have used your service a number of times over recent years, always repaying my loans on time and in full.

 

I have never been late with a payment, or defaulted on a sum.

A large part of my decision to use your service was your promise

on your website at the time that you would report my good conduct to credit reference agencies,

and this would improve my credit standing.

 

I kept faith with my part of this agreement and paid all my debts to you on time.

 

At the time, your services showed upon my credit file as “Loan”,

and my full and prompt payment of account did indeed have a positive impact on my credit file.

 

However, it seems that since then, yourselves or your agents Experian,

have decided to list them separately as “payday loans”,

and this has now been quoted to me by other lenders as the reason for them declining my applications,

and has in fact now cost me a mortgage and the home of my dreams.

 

As such, I feel I am being made to suffer undue hardship because of this retrospective change,

especially as at no time did I breach any agreement with yourselves,

and always met my promise to pay.

 

Note that this change means that the advertising you ran at the time

stating that use of your services would improve my credit rating is now incorrect.

 

As I entered into an agreement with you on the basis of this advertising,

I believe this has formed a collateral contract.

I also believe that this retrospective change is a breach of the FCA’s principle of Treating Customers Fairly.

 

There is no requirement in statute or otherwise for you to report the performance of my account to any 3rd party,

this is just something you have taken the decision to do.

There is no law or statute preventing you from removing this information from my credit file.

 

I would like to request you remove all settled accounts from my credit file,

as a goodwill gesture, in order to resolve my complaint.

 

I look forward to hearing from you.

 

Hi I was just wondering if you have had any success with this, I came across your thread and I'm in a very similar situation?!?!?

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I'm having a similar battle with Wonga over a loan taken out this time last year for the very purpose of improving my credit file. It seems they are happy to remove some loans if they feel you became inelgible under the new guidelines. My argument is one they advertised that taking the PDL would improve my credit rating and also that my financial statue was no different for the first loan hence under the new guidelines I wouldn't have been eligible.

Im finding they just keep repeating that they have to report the correct information to the CRA's, however when I challenge them on the removal of the second loans details from my credit file they don't seem to have an answer. I'm wondering if there is a cut off date for older loans which the new guidelines don't apply to?

i can confirm 100% that a PDL will effect your ability to obtain a mortgage, 1 may scrape through but multiple loans would make it near on impossible to get a mortgage, likewise multiple betting transactions.

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I'm having a similar battle with Wonga over a loan taken out this time last year for the very purpose of improving my credit file. It seems they are happy to remove some loans if they feel you became inelgible under the new guidelines. My argument is one they advertised that taking the PDL would improve my credit rating and also that my financial statue was no different for the first loan hence under the new guidelines I wouldn't have been eligible.

Im finding they just keep repeating that they have to report the correct information to the CRA's, however when I challenge them on the removal of the second loans details from my credit file they don't seem to have an answer. I'm wondering if there is a cut off date for older loans which the new guidelines don't apply to?

i can confirm 100% that a PDL will effect your ability to obtain a mortgage, 1 may scrape through but multiple loans would make it near on impossible to get a mortgage, likewise multiple betting transactions.

 

Yeah I've just applied for a mortgage and it's been declined on this basis, I have emailed the 4 lenders I have taken loans out with asking for the information to be removed, I know they don't have to record anything so hopefully I can convince them, if not I will go on a letter writing campaign!

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They wont remove it. It was added as an accurate record of the status of account. It's one of the reasons weve always said not to have one. You could take out a 200 loan with them, pay it back in full 4 days later, and they will still record it, and you will still get declined for a mortgage.

 

To a lender, use of a PDL makes you appear desperate for cash as you have been turned down by all other lenders.

Any advice i give is my own and is based solely on personal experience. If in any doubt about a situation , please contact a certified legal representative or debt counsellor..

 

 

If my advice helps you, click the star icon at the bottom of my post and feel free to say thanks

:D

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So why did they remove the second loan I took out with them? I fail to understand why if a loan was re-payed on time in full why under the new guidelines all Wonga activity on my CF should stay. My financial status is no different from the first loan taken out in Jan to the second taken out later in the year. It seems Wonga are picking and choosing which loans to remove from CF which surely makes the whole of your argument redundant.

I could understand if any bad information was retained but the fact that Wonga openly advertised that PDL were a good thing makes a case for removal of all loans paid on time.

 

Halifax have stated that they view a PDL as they would any other type of loan and it alone would not make you ineligible for a mortgage with them, of course multiple loans every month would have an effect but its really only the last 18 months to two years thats is looked at closely.

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  • 6 months later...

I just wanted to know if you have successfully removed wonga from your credit file.

 

I am in the very same situation but company is Sunny Loans, Shall I send the same letter and expect a positive response?

 

Looking forward to your response.

 

Thanks

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Best to start a new thread

Of your own

 

DX

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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  • 2 months later...

Hi - I was wondering if you ever got this resolved or even a reply ? I have recently been refused an excellent role within finance post a credit check (despite the role not being classified as a controlled function by the FCA) and when I checked Experian, fully settled payday loans from 1 year ago were on my file - 1 loan, rolled over 6 months turned up a individual entries. I was only helping my husband in the short term in a new business start up and when I talked to Money Shop at the time, they never referenced it would have a negative impact on my report.

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Start a new thread of your own

As per the last three posters

Thread closed

 

As the original question is now +6mts old

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Share on other sites

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Thread Locked

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If you need to add something to this thread then

 

Please click the "Report " link

 

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Please

Start your own new thread

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Thanks

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