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Correcting my credit report?

My name is Shahban Aziz. I was wondering if you could help me on this very complicated matter that has been dragging on for a while now:

Around three years ago whilst a student at University I got into arrears on an 'Orange' mobile phone bill which showed up as a severe default on my credit report. This debt was then passed on to a debt collection agency. After discussions with this company, I was advised that if I paid the account the debt would not appear as a default on my credit report. After hearing this, I paid off the amount in full in one payment and assumed this was the end of the matter.

However, after subsequently viewing my credit report, I have noticed that although the balance is listed as 'settled', it remains as a default and is the only default on my credit report - resulting it it severely lowering my credit score even though I have no other adverse credit!

I have since contacted Orange who advised me they could not do anything and that I should contact the agency who promised to me that the credit report would wipe out the default when I pay (i.e. not show that there were any missed payments as promisedby them).

Could you please advise which of the following choices would be best:

1) Get the collection agency to send me all the notes on the account (even though it has been 2 years+ now) and try to get them to remove the default as they misinformed me in order to get my money.

2) Keep calling the original creditor (Orange) as the default states it was an Orange account I defaulted on?

3) Issue a notice of correction on my credit report explaining there is a dispute or even perhaps (as advised elsewhere) issue a notice stating that the debt was whilst I was a student but I am working now - which may offer an explanation when creditors read this (also what wording would I please use??)

4.) Forget about the default as in another 3 and a half years it will not appear on my report anymore.

5.) Any other suggestions you may have?

Thank you for your help in this matter and I do apologise for the length of this question. Any advice is appreciated as I may wish to purchase a house once house prices fall further and for this I want a good credit rating.

Shahban Aziz

Comments

  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    According to your credit report, who issued the default on your account?

    Did you receive a notice of default from the company?

    How long after receiving the default notice did you pay the debt off?
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
  • On the credit report it says "8 missed payments - agreement terminated" or something like that - i.e. the worst it can get and mentions Orange and not the debt collection agency.

    I avoided many letters at the time :-( but paid quite soon when the debt collection agency got involved and the balance had mounted up.

    If I issue a correction should I issue it as a dispute that I believed it would be taken off or just emntion it was whilst I was a student and now I do have liquidity and creditors should not look down on me because of my one mistake!

    Regards
  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    You should have a certain amount of time to pay after receiving a default notice. Not sure if it is 28 days or something. If you hadn't paid by then, there is very little you could do to remove it.

    If you put a notice of correction on your file, it will stop automated credit checks from happening so that manual intervention is required. I would agree that this is probably the best course of action if the DCA do not agree to remove the default as originally advised. You have nothing to lose by asking them to remove it, but you probably won't be able to prove what was agreed.

    I would mention that you were a student when this happened. I missed alot of mail when i was a student when i went home between terms, but i would also state that although the Agency that put the default on your file had agreed to remove it if you paid within a certain timeframe, which you did, they did not agree to that in writing so you are now unable to remove the default.
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
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