Creation Finance Loan

Bellaboo1309

I will make this as short as possible but please ask for further clarification on any points.

Partner had a loan with Barclays but took a loan out online after he was offered a lower rate by Creation.

When the loan came through the rate higher than they originally offered so my partner phoned to query it and they said there was nothing they could do. He decieded he was probably better to cancel it and they said they couldn't do that as funds were already released and if he wanted to cancel he needed to phone back with funds to do so.

After a couple of weeks he decided to keep the loan as it was still a slightly lower rate than Barclays.

Waited a month, no direct debit taken so he emailed them and spoke to them. They said they had sorted it and it would be fine the following month. Same thing happend again the month after. All the while he received no correspondence from Creation on the matter. Eventually almost 4 months later his perfect credit file showed 6 missed payments and a default. After lots of arguing and being told we could not complain by the company we contacted the Financial Ombudsman.

They sent a complaint to Creation Finance who advised my parter was at fault for not paying the money back after cancelling the loan despite his understanding being that nothing was to happen with the loan til he called back.

He then advised he did not agree with this and the FO looked into it. They came back and found in his favour and said that Creation Finance should return credit file back to it's original state and they agreed to pay compensation. This was before Christmas. They only finally paid the compensation of £200 a month ago (then only offered £150 but reluctantly upped it) and have still yet to return the credit file to it's original state despite them advising since January it would be done within 28 days.

We have now heard from the FO advising that Creation Finance want debit card details for up to date identification and to run a credit check which they will subsequently delete, then they will return credit file to original condition. They have also advised further compensation of £250!

Does it sound like they are actually trying to submit a new loan application without actually tellng him? The compensation figure is quite unexpected as it took months to even get £200 from them.

Any thoughts or advice please? Ths has been ongoing since Sept 2013 and we have had enough!!

Also his credit file got worse at the start of March as they once again marked another missed payment! It has gone from poor to very poor! Could this impact on my credit score? We have a joint bank account and mortgage. I received a letter from my credit card company advising that due to recent changes in my credit score (only change is that it has gone up from 800 to 865) they are upping my interest rate by 5%

Thanks

DCFC79

In response to your last paragraph if you have a joint account then yes your financially linked so if you miss a payment it will affect your partners and vice versa.

No lender can see your credit score, it doesn't exist as far as lenders go.

Bellaboo1309

Thanks for the response. To clarify does that mean that my random increase in interest (first time it has happended in 13 years) could actually be due to my partner and not myself because of our financial linking?