Late credit card payment

jayship

A friend of ours had a credit card from Capital One for his wife and had an outstanding payment of £280. He usually pays between 30-40% each month of the balance.

In 2014 they moved house and due to an oversight did not make a payment until he received a letter from a collection agency demanding payment. He got in touch with them and settled the account in full.

He now wants to buy a property as he has the required deposit. The broker is arranging a mortgage in his name only which limits the amount he can borrow and is not enough to buy a property in London. The broker has excluded his wife due to the credit card default although she no longer has a credit card or any outstanding debt.

Is there any way of correcting this anomaly to allow her name to be included in the mortgage application. Forum members advice will be appreciated.

She no longer has a credit card or any outstanding debt

Dobbibill

I'm sure there will be someone along soon who can advise you with regards to the mortgage application but what they have reported to the CRAs is factually correct.

How long ago did they settle the debt? That may help others to tailor their advice/support.

andyfromotley

What does it show as on her credit record. If it is a default then this will be very problematic for obtaining a mortgage, probably until it drops off her credit history. (this is likely if it was passed to a DCA)

If it show as a missed payment or a few missed payments then not so much. It will reduce the pool of lenders but a mortgage is still possible with missed payment markers which are ussually viewed much less seriously.

Was it their choice or the brokers to exclude her? Talk to your broker about it. Some brokers specialise in adverse credit customers and have a great knowledge of the market. Seek one out and take their advice.

Ebe_Scrooge

jayship wrote: »

Is there any way of correcting this anomaly to allow her name to be included in the mortgage application. Forum members advice will be appreciated.

Sorry, this is not an "anomaly", it is factually correct. She failed to pay her commitments on time. The best you can do is find a lender who will overlook one "anomaly" in an otherwise "OK" credit record.

jayship

Thanks for the replies.
The debt was settled in June 2014 when they received a letter from the DCA. Contacted them and paid in full.
The broker decided not to include the name of his wife.
She has a clean history otherwise. This is an expensive mistake due to an oversight.
Have asked him to apply for a report from the CRA to establish what has been reported and if it has now been endorsed as paid in full

Ben8282

Your OP implies a single missed payment due to an oversight when moving home. A single missed payment does not result in the account being passed to collectors. Please provide more factually correct information.

jellie

Ben8282 wrote: »

Your OP implies a single missed payment due to an oversight when moving home. A single missed payment does not result in the account being passed to collectors. Please provide more factually correct information.

Actually, the OP implies a number of missed payments:

jayship wrote: »

.....did not make a payment until he received a letter from a collection agency demanding payment.

Thrugelmir

An oversight appears to be an understatement.

jayship

Thanks to forum readers for further input

These are the facts.
This was the only one payment that was missed and has no other default.
They moved house and forgot to tell the credit card company Capital One. Just 2-3 months later they received a letter from DCA demanding payment and it was settled in full over the phone.

He spoke to the credit card company today and they were unable to do anything as it was nearly 2 years ago. It was suggested that they get in touch with credit reference agency to get advice. He is in the process to apply for a detailed report from 2 Credit Reference agency.

Thanks for your input which is appreciated.

bengal-stripe

jayship wrote: »

This was the only one payment that was missed.......Just 2-3 months later they received a letter from DCA demanding payment and it was settled in full over the phone.

What about the payments due one month, two months later? I presume they didn't pay those either.

So your friends must have missed at least three payments.

jayship

I agree that the in between payments would not have been paid prior to receiving the letter demanding outstanding payment which was settled in full straight away.

In hindsight it will have consequences and cannot turn the clock back. Is there any other way to make amends?