Credit score reduced due to a missed payment we were not aware about

beavie911

Just wondering if anyone can help at all

Myself and my partner recently applied for a mortgage, after saving a massive 25% deposit we were surprised to be declined.
After taking out an account with Equifax we discovered what the problem was: my partner had taken out a TV and laptop on finance 4years previous, we discovered that in March 2011 one payment of (£25) was missed, however, he was not aware of this as there wasn't any letters/ phone calls to notify him of this. As he was unaware of this the payments continued every month for another 2 years, however, they have Said each of these payments were one month late! He received a letter 6 months ago to say that the loan was now paid off and he had only one final payment- still no mention off a missed payment!
Is there any way to argue against this as the loan was still paid every month and he was not aware that one month was missed? As a result of this he can't get phone contracts/ car loans / credit cards so how can he improve his score!!
Can we really not get a mortgage for the sake of £25!?
Hope someone can please help

bargainbetty

Send in an appeal to the mortgage provider. Most things are done by automated system. If you file an appeal, a human checks it, and you can provide an explanation of the situation. I've done this before over a £42 missed payment 5 years and 8 months prior to my application, and it worked.

beavie911

Oh okay, will try that then. Did you do this through your mortgage advisor or just write to the company directly? Thanks for your help!

The_Boss

Can I just clarify...you accept there should have been a late payment recorded against one month but the reality was it was marked against 6 months?

I'd consider a notice of correction saying you are disputing it as well as an appeal to underwriter. But you may not ultimately succeed.

The_Boss

bargainbetty wrote: »

Send in an appeal to the mortgage provider. Most things are done by automated system. If you file an appeal, a human checks it, and you can provide an explanation of the situation. I've done this before over a £42 missed payment 5 years and 8 months prior to my application, and it worked.

Would a missed payment that long ago really have been the deciding factor in refusing you though? I'd say it was unlikely.

Hazzinho

Seems unlikely it's the missed payment, 1 missed payment back in 2011 is going to make almost zero difference. Are there any outstanding debts?

beavie911

The payment was missed in March 2011, the direct debit continued to come out for another two years, so it was paid every single month, however- because they payment in march was missed ( and we didn't know) they claim that every payment for the next two years was a month late! Therefore= an awful credit score! We have contacted the lender and argued that they didn't not make us aware there was a missed payment and we only received one final letter to say the payment was cleared but they say there is nothing they can do. Subsequently he has an awful credit report and can't get a mortgage because there was one payment of £25 missed

Candyapple

beavie911 wrote: »

The payment was missed in March 2011, the direct debit continued to come out for another two years, so it was paid every single month, however- because they payment in march was missed ( and we didn't know) they claim that every payment for the next two years was a month late! Therefore= an awful credit score! We have contacted the lender and argued that they didn't not make us aware there was a missed payment and we only received one final letter to say the payment was cleared but they say there is nothing they can do. Subsequently he has an awful credit report and can't get a mortgage because there was one payment of £25 missed

Does he have lots of '1's showing on his credit file for that lender?

beavie911

Yeah and one 2 showing, is this the number of times they have tried to take the DD

Candyapple

beavie911 wrote: »

Yeah and one 2 showing, is this the number of times they have tried to take the DD

No, this is the lender recording how many months late you met your repayment schedule.

You should try writing to the lender again and plead your case, state that you never had any letters/calls informing him of missed/late payment and that it's now affecting mortgage chances and ask as a gesture of goodwill if they could amend the data. Failing that, you could always try complaining to the ICO and see if they can assist.