Blacklists by lenders - do they exist?

[Jessica87]

I got myself into trouble with a Halifax student overdraft many many years ago and the fees racked up so much I couldn't afford to pay it back before the debt was sold off. I moved away and sort of lost track of it.

 

The debt became statue barred and fell off my credit file around 2011.

 

Am I as good as dead to Halifax for any future business or will I be long forgotten by now, or in the near future? I'm looking for a mortgage and Halifax look promising but it seems like a bad idea to approach them or any of their group companies.

 

What happens to people who do this with a few lenders? If you mess about with a few you could wipe out the majority of the high street lenders because they all seem to be owned by each other to various degrees.

[obiter dictum]

My own opinion is not to worry. Creditors now ditch and terminate overdue accounts now at the drop of a hat. They simply sell the debt to a collection agency and use it as a tax wright off. Very few lenders keep personal information beyond six years after the account has been terminated.

 

I defauted on a Cap 1 card in 2010 and sold to a DCA. Cap 1 have just given me a credit card two months ago with a credit limit of 2 k

[martin2006]

If they sold the debt on then it will be in some form of archives by now and shouldn't affect anything.

From a lending point of view they only check for the last 6 years.

 

For example, i got into trouble a while back with 2 cap 1 credit cards which have now gone from my files, i applied and was accepted for a cap 1 card a few months back.

 

I suppose if they permanently blacklisted people forever (of which there is no evidence) they would run out of customers eventually!

[Jessica87]

Thanks, this makes sense, I was under the impression they would need to remove your data after a while as they no longer have a business need to retain it but maybe if you still *technically* owe money, they would have a reason to keep your name on file.

 

I guess there is only one way to find out but I'd rather avoid the embarrassment!

[martin2006]

Only in readily available format for last 6 yrs, anything sold on or older is archived into a "relevant filing system"

[Jessica87]

Would they consult the relevant filing system on a loan application? Perhaps a mortgage application rather than a small loan/credit card?

[martin2006]

No i dont think so, if your credit is now good you could always test the water with a credit card application, just be aware that if unsuccessful it leaves a hard search on your cra file.

Maybe try the "check availability" in the offers section on noddle or clearscore, this will only leave a soft search not visible to lenders

[dx100uk]

they would most probably see it in their own internal data search

but if it makes any odds to them or if they even search that on a mortgage application...who knows...

 

 

don't forget a debt in E&W still exists even if SB'd.

[tony3x]

on a mortgage decision in principle Halifax are one of the lenders that only do a soft search so no footprint is left.

[obiter dictum]

Most credit card applications now allow you a soft cedit check option prior to the hard check. It will say if you are going to be accepted before the main hard credit check that will be recorded. That soft check is not recorded on your credit files to other lenders. Cap 1 did that with me

[fkofilee]

Ditto for Cap one here... Fell foul in 2011 with a card and then they accepted me this year...

[lee_st3]

on a mortgage decision in principle Halifax are one of the lenders that only do a soft search so no footprint is left.

 

 

Santander are the same for a DIP. No full credit search until you actually apply

[renegadeimp]

Then when you apply they refuse you

[obiter dictum]

Often wondered what credit companies DO NOT see in a soft credit check compared to a FULL credit check.