Credit File Problem

Strangey84

Hello,

My partner is a Financial advisor and needs to mantain a clean credit report for her work which she always has, however we have recently had a big problem.

We bougfht a sofa from CSL on 4 years interest free credit and had been paying the money back as required. Out of the blue we got a letter from a debt recovery agency stating we had missed 4 payments. When we checked this out it was accurate but the Direct Debit was canceled by the originator. We know this as the bank manager ran a search and gave us the details showing the DD was cancelled by CREATION FINANCE. We brought the account to good standing and notified them of their error but the account is now showing on my partners credit file as 4 missed payments which was a fault of creation not ours.

Is their anyway of clearing this up?

JohalaReewi

You could report it as an error to the credit reference agency.

You can put a notice of correction on your credit file to say the missed payments were because the company failed to collect them and not because you couldn't pay them.

But I have to say why didn't you spot that 4 payments had not been collected? Don't you check your bank statements?

Strangey84

hi,

Thanks for the response, we didnt notice the payments as everything is paid by direct debit and the amount we pay is 33 pounds a month so relatively small. It was merely an oversight on our behalf.

Tixy

Will the bank provide something in writing to confirm that the DD was cancelled by the creditor?

Either way I would write a letter to Creation explaining the circumstances and ask them to consider remove the negative data from your credit file. They may be willing to remove them as although you should have spotted that the payment did not go out asif they cancelled the DD and didn't write to you as soon as the first payment was missed. (Thats assuming they didn't write to you for those first 3months before the debt collector wrote to you).

happy_bunny_2

Make a written complaint to creation, giving the evidence you have.

If they fob you off, refer to FOS.

matttye

Creation should remove the negative entries.

Whether you should have noticed the payments going out is neither here nor there, because it is the fact that Creation has cancelled the DD that has caused the problem. Had they not cancelled the DD, payments would be up to date.