Experian Help

Brighton_Grouch

I was wondering whether anyone could help me shed some light on Experian credit reports…

I have recently joined creditexpert.co.uk to get a handle on my debts as I have stupidly ignored them for the last few years.

First question is about what appears on the file. I have added every address in my adult life yet about 3 of my debts don’t appear. These include HFC and Halifax. Any idea why? I’m thinking it’s because there are several different agencies and my other debts might appear with another one. Is this right?

But the matter is confused by my HFC debt. I took a loan out in 2001 with them and then in 2004, borrowed a bit more and then got into difficulties and have buried my head in the sand since 2005.

On my credit report, it shows a file as settled on the date that I reconfigured the loan in 2004 but no subsequent file with my new debt that has now defaulted. This seems strange to me as I have had contact with them and made payments since then (In early 2006) and if it was a case of different companies reporting debts to different agencies, surely HFC would put both records with the same agency. I’m a little confused.

I have had absolutely no contact with them in almost 3 years and no record of the debt on the file despite owing them 10K. My first thought was that this debt has vanished but I know this is too good to be true. Anyone heard of this happening before or can you give me any advice as to what steps to take? I don’t want to flag this up to them if there is any way it might have accidentally slipped off the system. But equally I am trying to pay off my debts and I don’t want this to come and bite me in the !!!! further down the line.

Thanks in advance.

Benson

Brighton_Grouch

Just wanted to give this a bump as it's down on page 3 already. It's amazing how quick something vanishes on here if you don't get instant replies!

GeorgeUK

There are 3 credit reference agencies. Not all of your debts will be listed with just 1 so the details may as you say be with another CRA.

Updating your address detials on creditexpert may in itself flag up to these agencies where you are if they have been unable to contact you.

A debt becomes statute barred after 6 years (5 in Scotland) since the last payment or written acknowledgement of the debt. After this time the debt is unenforcable (if there is no CCJ).

Even if they were to contact you, or a debt collection agency did, you could request a copy of the customer credit agreement (CCA). If they were unable to provide on, with all the required terms, then the debt may still be unenforcable.

Brighton_Grouch

Thanks George, but how would that affect my credit rating?

I have come into a lump sum of cash and I want to use it to pay off my debts immediately. I haven’t got enough to cover all, only about 50% but I think with the way these debt recovery companies are desperate for money, they should accept 50% as a full and final settlement immediately.

What I want to do is get them all as settled on my report so that I can begin to repair my rating. I think if I settle (Or satisfy as I think it might be called) all these debts now then in two years time my credit will have improved sufficiently to start feeling like a functioning member of society. I really want to get a mortgage and buy my own place by the end of 2010 but right now my credit rating is in the gutter.

If I pay all these off but don’t touch this one that may or may not still exist, what will be the effect if they pop up again in the next 18 months after I have used up all my lump sum? Could the record appear on my credit report later? It would just seem strange to me that if this company (Beneficial Finance) has logged one of my debts on Experian, that they would use another agency for the newer debt. Does that make sense?

GeorgeUK

Do you currently have defaults on you credit file? If so, these will remain there for 6 years from the default date.

If a debt is with the original creditor, 50%-75% is generally offerred. If the debt is with a DCA though, 25%-50%. Make sure they agree that it is a "full and final" settlement rather than a partial settlement and don't pay anything until you have written confirmation.

They will probably show as "partial" on your credit report, but there is a nationaldebtline letter you can use when making the offers.

Dear Sir/Madam

Re: xxxxxx

We write with reference to the money which you are claming on the above account.

We can confirm that we are unable to offer to pay the money which we owe in full. However, I can raise £xxx and I want to offer this an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate
company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

We look forward to receiving your reply.

Yours faithfully

Brighton_Grouch

Thanks again George, very helpful.

They've all gone into default around mid 2005.

So hypothetically, will satisfying these debts help my score immediately at all? Or will it be six years from the default before I can start applying for a mortgage?

Is their anything I can do in the short to medium term after paying these debts off to get my credit rating back up? Or do I literally have to just wait for these to drop off my file?

The thing is, they all long ago stopped chasing me so what difference would it make to my report and financially to settle now rather than just waiting for them to drop off?

Brighton_Grouch

Just a cheeky bump because it;s amazing how quickly these things fall down the forum.

Thanks.

LilacPixie

AFAIK The debts/defaults showing as settled looks slightly better than an unpaid default but I would imagine that you have little to no chance of a high street mortgage in the present climant if you have a less than perfect credit score.

You also have to consider that the best deals are only availible to those with a 40% deposit.

GeorgeUK

I don't know about improving your score immediately, but it will definately be better than having outstanding defaults on your file (do you know if there are actually defaults that have been registered?)

What creditors are wanting to see is that you are able to make payments on time. If you don't currently use a credit card i would suggest you get one so that you can show a good payment history. Make sure you clear the balance each month and just put a small purchase on the card.

Brighton_Grouch

Thanks guys,

They are registering as defaults on the file.

At the moment I can't even get a debit card with Nationwide, never mind a credit card. Hopefully when I have gone through this process though that will enable me to get a card and I will simply put something like a Lovefilm membership on it and pay it off monthly.

I have started calling round creditors this morning and some are more helpful than others. Managed to arrange a fair amount with most but Natwest and RBS have been quite harsh. The amount agreed is OK but they say it is their policy to note 'Partially settled' on the credit file rather than settled. Everyone else has been happy to just state settled. Is this something you think I can negotiate with them or is a policy like that usually set in stone?

GeorgeUK

You can't really demand that they put satisfied as technically it wasn't. You may also find that some others don't put satisfied on the credit report - that's why we advise writing to make these offers. It's hard to prove what was said over the phone unless you are recording it or can get a copy of the recording.

Don't make any payments until you get written confirmation that it is a full and final settlement and not a partial settlement.