Withdrew from payday loan - credit file?

nickbhoy172

Hi There,

I'm looking for some advice from anyone who's had a similar occurence to do with withdrawing from a payday loan agreement.

Back in February I took a loan of £150 from Sunny.

Two days later I changed my mind and withdrew from the agreement as per their T's and Cs and the Consumer Credit Act 1974.

Section 66A paragraph (7) states:
7)Subject as follows, where the debtor withdraws from a regulated consumer credit agreement under this section—

(a)the agreement shall be treated as if it had never been entered into, and

I then looked on my credit report and saw in the 'Settled Accounts' section this loan. I was quite disappointed in this as it was my feeling that this was not a settled credit account but a cancelled credit account. There is effectively no distinction on this between the two.

I am taking it up with their internal complaints but has anyone else withdrew from a payday loan and if so did it leave a mark on your credit report?

Thanks,
nick

Stevie_Palimo

Well there clearly is a difference between settled and cancelled that would stand out like a sore thumb.

If you hoping for it to be removed completely I don't see how or why it would affect you as no loan was actually taken up so no real issue for you here.

nickbhoy172

Hi Steve,

Glad you agree there is a clear distinction between settled and cancelled.

This entry in my credit report for the cancelled loan is identical to others where a loan was taken up though and that's my problem.

I don't think it's reflective of what happened.

Stevie_Palimo

Personally I think there is far more in life worth worrying about than a credit report and would not let it eat me up like you seem to be doing.

If it is cancelled what is the actual issue for you here ?

nickbhoy172

I should have said, the reason I'm concerned is I will be applying for a mortgage soon (next few months) and am aware that some mortgage providers don't look too kindly on pay day loans entries.

I know it's a detail (cancelled/settled) but it could be quite important here...

DCFC79

nickbhoy172 wrote: »

I should have said, the reason I'm concerned is I will be applying for a mortgage soon (next few months) and am aware that some mortgage providers don't look too kindly on pay day loans entries.

I know it's a detail (cancelled/settled) but it could be quite important here...

Is it the only pay day loan entry on your file ?

Stevie_Palimo

Well then you are the sole mercy of the lender in question and rather than complain why not try and ask in a polite fashion about having this removed from your file and yes having this listed in any way shape or form probably will be a negative impact on your credit file.

If they refuse then it is there 6 years I believe and your argument should it arise with the lender in question is look it shows I never took it out.

nickbhoy172

DCFC79 wrote: »

Is it the only pay day loan entry on your file ?

It's not but it's the only one in the past year hence my concern

molerat

(a)the agreement shall be treated as if it had never been entered into, and

Which really means it should not be on the report at all but any associated searches should possibly remain.

nickbhoy172

Stevie_Palimo wrote: »

Well then you are the sole mercy of the lender in question and rather than complain why not try and ask in a polite fashion about having this removed from your file and yes having this listed in any way shape or form probably will be a negative impact on your credit file.

If they refuse then it is there 6 years I believe and your argument should it arise with the lender in question is look it shows I never took it out.

I have politely asked and I'm now politely opening up a complaint as they refused.

I wouldn't say I'm at the lender's mercy more the financial ombudsman should it get that far. Hopefully not.

nickbhoy172

molerat wrote: »

Which really means it should not be on the report at all but any associated searches should possibly remain.

Thanks for the reply that was my reading of the Act as well, I was hoping someone else had been in this situation but I suppose it's not that common.

I'm going to take it to the ombudsman anyway should they refuse (which I think they will) so I'll be interested to see their interpretation