I've ruined my husbands credit rating, help!

koliver1312

Hi, Can anyone offer any advice please?

My husband has just received a letter from credit card company to say he has defaulted and not paid the last two months minimum payments. This is entirely my fault as I was meant to pay it off in full a few months ago. However I didn't check the statement for the next two months and there were interest payments. He didn't receive paper statements so this went unnoticed.

We would now like to remortgage, however this is now mentioned on his credit file. Is it worth contacting credit agencies to say this was a stupid mistake. (minimum payments were only £5!)

Please only respond if you have positive advice to offer, I feel awful about this and don't need anyone to tell me how bad the situation is!
Many thanks

The_Boss

koliver1312 wrote: »

Please only respond if you have positive advice to offer

Unfortunately no positive advice can be offered except to ensure these payments are now made and not to miss future payments to ensure the negative effect is minimised. Neither the credit reference agency or the lender will remove the data from your credit file.

dancingfairy

Unfortunately I don't think there is much you can really do.
It is an accurate representation of the situation. You can try and appeal to their good nature, but having missed 2 payments (and not just paying a few days late or something) I feel your chances are limited.
Obviously over time the effect will diminsh and it will drop off after 6 years.
It's just such a shame it's so near to the point where you wanted to remortgage, as it will probably mean you will get offered a poorer rate
Maybe try a mortgage broker and see if they can suggest anyone who can help you.
If you can't find favourable remortgage terms then maybe wait 6- 9 months when it's obvious the default was just a blip and then try again.
Sorry I can't be more positive.
df

lonestarfan

Have you rung the Credit card company and explained and asked them if they can change the credit agency.
I did this once - it was about £1.79 and they charged me a late payment fee but they reversed it. They said they hadn't reported it to the credit agency anyway. Has your default definitely been reported and have the credit card company definitely said they can't remove it?

The_Boss

lonestarfan wrote: »

Has your default definitely been reported and have the credit card company definitely said they can't remove it?

The OP said that it had been reported to the CRAs in their post.

For two consecutive missed payments they will certainly not reverse anything out of 'good will'. Sometimes they will reverse a late payment fee, but missed payments are obviously more serious.

happycamel_2

One positive step would be to get at least the minimum payments on direct debit so the credit file can't be further impacted. I can't see how this accurate reporting can be removed though although it may not have too much impact on a remortgage once it is a few months in the past and if you are sticking with the same lender and have always conducted your mortgage correctly. It would be best to contact them and explain.

matttye

ICO guidance says a default should be placed for around six months of missed payments - not just two!

Plus they should have sent you a default notice explaining how you could rectify the situation before a default was actually placed on his file.

I think you have a fair shot of contesting this.

The_Boss

matttye wrote: »

ICO guidance says a default should be placed for around six months of missed payments - not just two!

Plus they should have sent you a default notice explaining how you could rectify the situation before a default was actually placed on his file.

I think you have a fair shot of contesting this.

I assumed they hsve used the word default in terms of the missed payments but recorded them as missed and not an actual default. If it is an actual default then surely this would be from there being issues for more than two months.

matttye

The_Boss wrote: »

I assumed they hsve used the word default in terms of the missed payments but recorded them as missed and not an actual default. If it is an actual default then surely this would be from there being issues for more than two months.

If it is missed payments they don't really have any chance of getting them removed, but if it's a default... A default notice is required, and it needs to give the debtor an opportunity to rectify the situation.

ValHaller

matttye wrote: »

ICO guidance says a default should be placed for around six months of missed payments - not just two!

Plus they should have sent you a default notice explaining how you could rectify the situation before a default was actually placed on his file.

I think you have a fair shot of contesting this.

I think that OP has just received the default notice. From memory, I think that the 6 months comes into the question of how quickly a default should be placed on the file and 2 missed payments looks like a fair criterion for a default., although i stand to be corrected.

If the letter is a default notice, it will state what is required to avoid a default. The credit record will still show missed or late payments most probably

A good broker may be able to find a deal with a lender prepared to overlook trivial adverse, particularly if bank statements show that this was ineptitude rather than failure to have enough money.

matttye

ValHaller wrote: »

I think that OP has just received the default notice. From memory, I think that the 6 months comes into the question of how quickly a default should be placed on the file and 2 missed payments looks like a fair criterion for a default., although i stand to be corrected.

If the letter is a default notice, it will state what is required to avoid a default. The credit record will still show missed or late payments most probably

A good broker may be able to find a deal with a lender prepared to overlook trivial adverse, particularly if bank statements show that this was ineptitude rather than failure to have enough money.

http://ico.org.uk/for_organisations/sector_guides/~/media/documents/library/Data_Protection/Detailed_specialist_guides/default_tgn_version_v3%20%20doc.ashx

"11 Time framework
Although there will be some flexibility in the definition of a breakdown, we believe there should be general rules for the minimum period of arrears which should exist before a default can be filed. Equally there should be a maximum period after which, if anything is to be recorded with a credit reference agency, a default must be filed. The following are in line with the practices currently adopted by most lenders.

- Accounts should not be routinely filed as being in default where full payments or those due under a rescheduled agreement are fewer than three consecutive months in arrears.

- Accounts should normally be filed as being in default where those payments due have not been received for six months."

It seems I was mistaken and six months is the maximum amount of months in arrears rather than the minimum, but they indicate that defaults should not be filed where payments are less than three months in arrears.

Section 87&88 of the Consumer Credit Act deal with the need for default notices and what they must contain.