Getting a company to close an account?

dizzybare

Hi
Daughter and fianc!e trying to get mortgage on shared ownership house.

Fianc!e missed a payment on a catalogue so has a poor credit rating

Now been advised that the company have not. 'Closed the account' so in effect the account is showing as still in arrears?

Company say that they can close account from today, but it should have been closed over 2 years ago so it's not a true reflection of fianc!es credit rating.

Company said (effectively) hard cheese! they can't backdate it.

Daughter has 25% deposit saved but can't afford house on her single wage

Is there anything they can do?
Thanks

Tixy

If the account on his credit file is showing as a nil balance then it should make very little difference that the account was not closed. That missed payment would still be visible to a potential lender either way.

You say it should have been closed 2 years ago, did he write to them to ask them to close the account?

A single missed payment from 2 years ago is unlikely to cause a mortgage application to be declined if all other payments on his credit file are shown as being paid on time.

happy_bunny_2

Write to them, complaining it should gave been closed 2 years earlier.

As Tixy says, should not prevent a mortgage.

Does it show as 1 month late for all months for the last 2 years? Or just a late payment 2 years ago then up to date from then?

happy_bunny_2

What they say on the phone and what they will put in writing are often very different. Of course they can change the date it was closed.

Thrugelmir

dizzybare wrote: »

Fianc!e missed a payment on a catalogue so has a poor credit rating

Requires more than a single missed payment to have a "poor" rating. If the rating is poor then there are factors to be considered.

dizzybare

Thanks for all the replies

I've talked to daughter who insists there is only one problem on fianc!es records.

I've explained to her that this wouldn't be as detrimental to their mortgage application as the effect it seems to be having ( refused mortgage yesterday) but she insists that was the position a few years ago but in the current economical climate even 1 default is detrimental and because it's a shared ownership house it seven harder to get a mortgage. She 'knows best and I'm out of date with mortgages having cleared mine several years ago!'

Think it's time to ask to see his credit rating as I'm unwilling to help them further by standing as any sort of guarantor on current information.

Thanks again everyone. 🐲

Thrugelmir

dizzybare wrote: »

even 1 default is detrimental

Late payment is not a default. In fact a considerable difference.

enginesuck

Can anyone define when a late payment becomes a default ? I think I know but would like to see it in black and white - Thanks in Advance

Tixy

enginesuck wrote: »

Can anyone define when a late payment becomes a default ? I think I know but would like to see it in black and white - Thanks in Advance

A missed/late payment is when you don't make a contracted payment on time. This is recorded as a '1' marker on your credit file in the payment history section of the credit account entry to indicate you missed a payment.

A default is when the lender considers that the contract has broken down. This would typically be after getting at least 3months behind with repayment. On the credit file this is very clearly marked on the account as status default and will show a date of default and amount defaulted in the top/main section of the credit account.

Tixy

dizzybare wrote: »

but she insists that was the position a few years ago but in the current economical climate even 1 default is detrimental and because it's a shared ownership house it seven harder to get a mortgage.

If it is recorded as a default then yes it could well be enough of a factor on its own to mean most mortgage lenders will decline him.

Be worth you/them understanding if it is a default, or a single missed payment on his credit file.
And establishing with him if he simply paid 1 month late, or if he paid the missed payment some months later.