Credit file clean up secured loan!

freddy911

Anyone have any Experiance of cleaning up secured loan and mortgage accounts post br and house sale? Can I just send the std letter I used for all my other accounts? Or is there another version for secured accounts?

fermi

Can be more complicated while the house is unsold, but essentially after that it is much the same.

See the sections in: https://forums.moneysavingexpert.com/discussion/3172602

Consequently, a lender should file a default no later than six months after the date of a successful court application to proceed with possession unless

• the customer has made reasonable and agreed arrangements to repay,
• the lender can justify not filing a default on an exceptional basis. For example, the lender is fully informed of the circumstances and knows that payments will start again, or
• the loan has been included in a bankruptcy in which case the default should be filed in accordance with the guidance in paragraphs 47 – 48.

So even in an extreme case, where there is no bankruptcy, the lender should report the default within 6 months of the repossession.

But as there is the bankruptcy here, 47-48 applies, so...

a lender should backdate the default filed to the date of the bankruptcy or IVA if the customer requests this.

So if that is indeed applicable, then the standard letter pretty much covers it. Although you may want to tweak to reference the above.

Saying that, not seen many responses/results on that, so can't guarantee 100% that the ICO etc would uphold that interpretation.