Two Credit files don't match up - Meeting for an AIP

EatingGlitter

Hiya,

my partner and I are going to the bank on Saturday to get an AIP for buying a house.

We're going to Nationwide and I am aware that they use Experian for their searches.

My Experian account is pretty much clean. A late payment or two 36 months ago and nothing recently. No excessive amounts of searches etc.

However on my Equifax file I have a default from Virgin Media from 2/3 years ago. It was for £62 and when I discovered it I rang and they told me I had to pay it before they could do anything. I paid it and was referred to my credit reference agency who I contacted and then they contacted Virgin.

I never received a default notice etc as it was for a previous address and was under the impression it had been cancelled. Virgin media came back to them saying that it was correct and it now is displayed as settled.

Do I declare this when I go to the Nationwide. It's only on this single credit report and not on the one that they will use. It's such a minimal amount as well.

Conrad

The majority of people forget to tell me about things like this even when I repeatedly ask them to give thier history some thought. When such bad debts are then discovered the case is no prejudiced by the fact it was undisclosed as long as it was a small one off.

EatingGlitter

Conrad wrote: »

The majority of people forget to tell me about things like this even when I repeatedly ask them to give thier history some thought. When such bad debts are then discovered the case is no prejudiced by the fact it was undisclosed as long as it was a small one off.

Thank you Conrad. That's is really helpful. Also, as it was not a credit agreement should this affect it? From what I gather Virgin Media are not in a position to issue these defaults etc.

Experian_company_representative

Phone and utility agreements are not covered by the Consumer Credit Act so they don't have to issue a formal Default Notice. However, ICO guidance says they must still make an attempt to contact you to let you know they plan to register a default on your credit report. If they sent a letter to your previous address then they have done what they had to, assuming you didn't give them your new address.

Your credit report includes information about a wide selection of credit agreements, including utilities. They certainly can legitimately register defaults.

While Nationwide does use Experian, some lenders carry out checks with more than one CRA. I think the best policy is always honesty in these situations.

Good luck!

James Jones

EatingGlitter

Hi James,

Thank you for the advice. I have an email I sent to Virgin Media stating my new address etc. They made it very difficult for me to cancel at the time (kept being passed around from several different people either by email and by phone). I truly believed that I had cancelled it. I've disputed it on my credit file and I've sent a letter off asking if it can be removed as a goodwill gesture etc. I'm worried about it though as I've spent the last two years trying to repair my credit file and this was a bit of a shock.

Will a default, albeit settled, so small as £62 make a massive difference to a mortgage application?

Conrad

EatingGlitter wrote: »

Hi James,

Thank you for the advice. I have an email I sent to Virgin Media stating my new address etc. They made it very difficult for me to cancel at the time (kept being passed around from several different people either by email and by phone). I truly believed that I had cancelled it. I've disputed it on my credit file and I've sent a letter off asking if it can be removed as a goodwill gesture etc. I'm worried about it though as I've spent the last two years trying to repair my credit file and this was a bit of a shock.

Will a default, albeit settled, so small as £62 make a massive difference to a mortgage application?

James is wrong on the 'honesty is always best'. Remember you will be interfacing with cold software, not a real Human when it comes to mortgage scoring. If the late payments end up comming to light, deal with it then - if you simply input 'yes' to the question 'have you ever experienced credit payment issues' the dumb software will almost certainly decline.

This is not about honesty, it's about pragmatism in the same way a teacher may want to honestly report you that your child is just plain disruptive, but such cold honesty would be ineffective. There are times in life when a little lattitude is called for.

EatingGlitter

Hmm, interesting. I've got a few marks on my credit account from a few years ago (a couple of late payments etc from when I graduated to getting a job) I've added a note on the statement of affairs explaining the situation. I will discuss this with the mortgage provider at our meeting and then I guess we can decide what to do from there. I've tried very hard to get my credit file into a good state as my partner has said that if it looks like my file will prevent us from getting a mortgage then he will just go ahead with it on his own, which obviously will give us less to work with even if a higher amount would be more affordable.

Oooh this growing up thing is difficult