Moorgate collections: Does having this affect my credit rating?

Azwak

6+ years ago I defaulted on a NBNA credit card. The debt was bought by Moorgate finance services. On my credit report it shows the debt as settled for NBNA and I am paying moorgate £25 monthly (interest free).
I haven't payed Moorgate the the balance as figured it's interest free so there no rush (no missed payments either).

I am now applying for a mortgage and wondered if having that company which is known as a collections company, on my credit report will cause an issue?
Thanks

Tixy

What does your credit file show for this debt - if it still shows the original creditor's entry what default date is shown on that entry? and what default date is shown on the Moorgate entry?

If you defaulted over 6years ago then the debt should have dropped off your credit files by now.

In terms of a mortgage - when they perfom a credit search then see an anonymised version of your credit report - so they won't see who owns the debt.
That said when you declare your debts to them on the application they will of course take the debt in to consideration. And the fact that it is a defaulted debt with a debt collection agency and that you are not paying interest could concern them.

Azwak

May 2008 is when the arrangement started.
On noodle it has the green A dot (Arears?) on each date up until Jan 2000 then was back in credit with the Green OK dots on each month after.

The NBNA account has gone off the report.

My bank said I have a really good score for how I manage my account and have given me an intention to lend letter but noodle says my credit rating is 2/5 so i'm worried when it comes to the crunch and make an offer, I won't be able to get the mortgage.

Tixy

Have you checked your credit report for all 3 credit reference agencies? - that is a must if you are thinking of applying for a mortgage.

May 2008 is when you made an arrangement with the debt collection company? or when you first fell in to arrears with the creditor?

A debt being passed to a debt collection agent is a indisbutable indicator of a default. Therefore a default should have been entered on your credit file no later than the date the account was passed to the debt collector. And the default would then fall off 6years later and the whole account would no longer show on your credit file.

If the debt collector took over the account in May 2008 then I would be writing to them to say that they should have entered a default in may 2008 and that therefore the whole account should drop off your file by the end of this month.

Azwak

Wow! Now there's a shock. Following your advise I've enrolled on experian. It has shown up that Virgin media have been defaulting me for 4 years over £27 that they say I did not pay for a final invoice when I moved house. This has enraged me!
I'm now in the process of contacting Virgin to resolve this.

On the flip side, experian does not show up the moorgate account. And all defaults from my history are no longer visible. They also say I am in the 'good' category compared to 2/5 on noodle.

I suppose there is light at the end of the tunnel but it's so frustrating, as I'm ready to buy a house.

thebritishbloke

You may/may not get a mortgage with that on there, difficult to say considering it's for £27. I'd go to a mortgage broker and discuss it with them.

Ignore your credit 'score'. It's an arbitrary number that means nothing.