Debt management agencies and credit scoring

dustcollector

Can anyone advise. I got in a complete mess back in 2004 and started a debt managment plan. Older and wiser I'm trying to clear things up. I have just got my equifax report and obvioulsy lots of missed payment to my creditors which gaves me a low credit score!!! Although they have infact accepted payments for the last five years - they're getting what they want - my debt managment company are making money. I think its unfair that nothing is updated of these reports stating I'm not making payments!!! I don't expect a clear report but something to guide to people looking at my credit report that I'm making an big effort to sort out my finances. I think this is only fair as its too easy for banks to gave bad information on our reports. Does anyone through the best way to start complaining? and if I'll get anywhere

DarkConvict

If the information is incorrect you must tell the companies involved to update their records. many will mark the file with defaults but rarely will they remove them or update the record unless you request it.
Under Data Protection the information must be accurate so you have a right for it to be corrected.

Im sure there is a template later somewhere to send them, *tries to find it* *Found*

Possible templates here - http://www.consumeractiongroup.co.uk/resources/templates-library/49-challenge-a-default-on-a-disputed-account
To view the above templates you may need to register on the site first for free.

Not sure if this site MoneySavignExpert has any templates yet for defaults on a credit file.
Found this post which might be handy - Default Removal - Debt Paid in Full

Dealing with defaults on your file.

One of the major problems people face are past debt defaults on your file, these can easily hamper most apppications to get new credit and if they're genuine and fair are tough to deal with. There are a few things you can try though especially if the default is unfair.

Complain to the Ombudsman. First write to the company and complain the default isn't fair and lay out your terms. Ask it to wipe the fault from your file, which it can do if it's disputed. If that fails, complain to the Financial Ombudsman the free independent arbiteur of disputes, it can rule both that the debt is unfair and that the default can be wiped.

Negotiate with the lender. If you are prepared to settle the debt, either in part or in full, then you can enter a negotiation with whomever you owe the money. As part of this you can make a condition of settlement that the default is wiped off your credit file. Companies are allowed to do this for disputed defaults.

Add a 'Notice of Correction'. If all else fails, and you believe the default's justifiably unfair, add a notice of correction to the file explaining the problem eg,saying: "It was a joint account and the debt was run up once I no longer had access by my errant ex-husband/wife." This will slow applications down, as most companies will look at it manually, but as a substantial default is likely to stop you getting credit anyway, that's usually not a problem, providing it helps.

Source : http://www.moneysavingexpert.com/loans/credit-rating-credit-score#fraud

MyLastFiver

If you are making reduced payments, ie less than the contractual minimums, then lenders are entitled to enter missed payments on your file. Some do this systematically, some sporadically and some not at all, but I think you would have difficulty disputing entries if they are accurate.

DarkConvict

They have accepted these new minimum payments, so it is not a default. It would only be a default if you fail to make the requested minimum payment.

- My mistake, see below.

fermi

If you fail to make the contractual (minimum or not) payments, then the the lender is entitled to default you.

Most people on a DMP will not be paying the contractual minimum, so the lender is likely to record a default.

As a DMP is an informal arrangement, then even if the lender accepts lower than contactual payements via the DMP for a period, they are still entitled to record a default.

Once a default has been recorded then the lender is no longer required to report monthly payment information to the credit reference agencies. The account's status stays at 'D'/'8', a default.

However. the lender should continue to update the outstanding balance on the account to reflect moneys paid off.

DarkConvict

My mistake, i thought these informal arrangement would still count as they have agreed to it.

MyLastFiver

DarkConvict wrote: »

They have accepted these new minimum payments, so it is not a default. It would only be a default if you fail to make the requested minimum payment.

Ah right. Is that so? Well silly me. :rolleyes:

Good luck disputing those entries then. Do let us know how you get on :rotfl::rotfl::rotfl: