Mortgage Lender stopped reporting to Credit Reference Agencies

Rosenhaus

In January 2014 I obtained my Statutory Credit Reports from all 3 CRA, and found that NRAM, my mortgage lender, had stopped reporting the status of my account to Experian and Equifax since January 2013 when the O/S Mortgage was £35,507 and status 6, because of arrears. I called NRAM and told them and they called me back and said they would investigate and correct if necessary, I never heard back from them but assumed it would be dealt with.

The arrears were cleared in September 2013 and payments have been on time since then, the O/S Mortgage is now £25,034, however having now obtained all 3 CRA reports again I see NRAM never did start reporting again and the reports still show the balance as £35,507 and status 6.

Am I correct in thinking that NRAM have a responsibly to report an accurate picture of my mortgage account and that I should make a formal compliant, in writing, to them to correct the report. Also should I contact the Credit Agencies directly and post a notice of correction myself.

thanks for any help in this,

fermi

Yes, they do have a duty to do that. Yes, complain.

Rosenhaus

Thanks fermi for your quick reply and also for the 'sticky' in this forum which I have been checking out...it's very helpful.

I will write this weekend to NRAM but in the event they are not responsive am I correct in saying I should then complain to the Information Commissioner’s Office rather than the Financial Ombudsman Service which the NRAM page suggests.

thanks again,

fermi

You can and should complain to both.

Reporting to credit files on this type of debt is one area where they can both look at complaints. Their perspective and basis for assessing and deciding complaints is just a bit different.

PaulW922

NRAM has the choice of either reporting accurate information or reporting none at all. I would suggest you attach a print out of your credit file to your complaint (or the relevant bit of it) should NRAM decide to write back and tell you that the data they are reporting is correct.

stclair

fermi wrote: »

Yes, they do have a duty to do that. Yes, complain.

You will find lenders say they "may" report to credit reference agencies not "will". Lenders are under no obligation to report account conduct to a credit reference agency. As long as the information is correct whilst it was being reported. It may have stopped reporting for a number of reason such as data cleansing. BT stopped reporting their accounts for years then started again.

fermi

No. If they choose to report then any record MUST be kept accurate and up to date.

NRAM here has been reporting and has failed in that obligation under the DPA to keep the record accurate and up to date.

As you say a lender could choose not to report at all, but here they have so if it is to remain it must be accurate and up to date.

NRAM have only 2 options.

- Update the record they have recorded.
- Or remove the entry in it's entirety.

Leaving it as it is breaches DPA requirement for reporting.

fermi

PaulW922 wrote: »

NRAM has the choice of either reporting accurate information or reporting none at all. I would suggest you attach a print out of your credit file to your complaint (or the relevant bit of it) should NRAM decide to write back and tell you that the data they are reporting is correct.

Yes, that is correct.

A creditor can't just abandon reporting a particular record if that means it is no longer accurate and up to date.

Would be like a creditor recording a default then refusing to update the account any further to show that it was later settled.

They would have failed under their DPA obligations. This is no different leaving a record a 6 moths in arrears when that now does not represent the current situation.

stclair

fermi wrote: »

Yes, that is correct.

A creditor can't just abandon reporting a particular record if that means it is no longer accurate and up to date.

Would be like a creditor recording a default then refusing to update the account any further to show that it was later settled.

They would have failed under their DPA obligations. This is no different leaving a record a 6 moths in arrears when that now does not represent the current situation.

I think as long as the information was accurate at the time it stopped reporting its not a problem. Unless you have evidence to suggest otherwise to assist the OP with their case. Also it will also assist myself as Barclaycard have stopped reported by account and it's been passed to the FOS no joy. So I'll happy to read any legislation etc you can provide.

fermi

No, a record must be kept accurate and up to date. Just leaving where it should be updated it is a breach of the DPA.

They can't just choose to abandon it and leave the last status as something that is not currently accurate and up to date.

As said, if that was the case the lender could:

- Record a default and then not ever mark it as satisfied if they just can't be bothered to update any more
- Not update a record in bankruptcy to the correct default date or mark it as satified as of the discharge date if they just choose to stop reporting.
- And any other example where there is a significant (or even small for that matter) change in the status of the information that should be reported to comply with the DPA requirements.

ICO&SCOR wrote:

Data that is reported on your credit file must be fair, accurate, consistent, complete and up to date.

matttye

Fermi is obviously correct, as if the lender doesn't update the account your credit file will show you owe more than you actually do (if you are paying down a debt) and this will give other lenders the wrong impression about you.