Loan still showing on report after paying off

worth1g

Hi, just after a little advice please. I took out a 4 year loan for a car. After 3 years, which is over 6 months ago, I paid the loan off early.
Today I applied for a mortgage and got knocked back as they said I had not declared my outstanding loan.
After looking into the credit file it is the loan for the car that I paid off which still shows over £600 outstanding.
I have spoken to the loan company who confirm I paid it off and are going to look into it but in the mean time I am losing out on a great rate for a mortgage through no fault of my own.
Any advice on how I can quickly remove this from my or what I should do would be greatly received. Thank you.

National_Debtline

Hi there worth1g.


This is an unfortunate example of why it's so crucial to check one's credit report immediately prior to a mortgage application.


I don't know if the lender has declined you simply because they believe that your application contained misleading information, or if they would have turned you down due to having an outstanding debt of £600 (this would seem harsh if your application was otherwise acceptable).


I would start by contacting the credit reference agencies to add a notice of correction to your report. Also, the loan company need to do more than "look into" the matter - they need to correct the entry on your report with immediate effect. A formal complaint may be needed to hasten them.


You may be able to re-submit an application for the mortgage after taking these steps - the lender's underwriters will have to read the notice of correction as opposed to just putting your application through a computerised system.


If you end up losing out on a preferential mortgage deal as a result of these problems, you may be able to seek redress through a complaint to the Financial Ombudsman. I may be wrong, but I think I can recall a case where a creditor was asked to compensate a borrower to make up for the lower interest rate he had missed out on as a result of their processing his data incorrectly.


Good luck


Dennis
@natdebtline

dobbollah

i use noddle.....free to use.....my wife had an account on there from 2011 that had some how slipped through the net. I opened a dispute on the account and it got sorted.....