Withdrew from payday loan - credit file?

molerat

Agreed - complaint then FOS and ICO if they do not remove it. It may be worth getting in touch anyway and get their view on the situation. If you have not entered into a credit agreement there is nothing to report.

DevCoder

When were the other payday loans and how many?

Mortgage lenders will look further than 12 months in their consideration.

poppasmurf_bewdley

I would disagree that there is a difference between 'settled' and 'cancelled'.

You entered into an agreement for a loan, and cancelled it two days later and presumably paid back the money. This settled the matter, hence the term 'settled' on your credit file.

You cannot really expect there to be no mention of the matter at all on your file. And any company thinking of offering you a mortgage would, in my opinion, see no difference between 'settled' and 'cancelled' either. In fact, cancelled could have an unfavourable aspect for you in that the mortgage company may think that the loan company cancelled the agreement for some reason.

Lemonsqueezer78

Its an interesting question...I happen to think that the OP has a pretty good case, actually.

Conjecture, I admit since I am not a lawyer, but if the OP has exercised their right to utilise their statutory cooling off period to withdraw from a loan agreement - and the commitment provided was that this occurrence would mean it would be as if the OP had never taken out the loan, then in my view that should include the removal of this credit account data. Why should a loan account show there in any status, if - according to their own T&Cs - no loan agreement was ever entered into?

If the OP makes a clear and reasonable complaint to the ICO and/or the FOS (reasonable for me would be that the searches should remain, but the account information itself should be removed) I think it's possible he could have a complaint like that upheld.

Especially in light of the fact that PDL can and do have a documented negative impact against your ability to obtain credit in some cases.

molerat

poppasmurf_bewdley wrote: »

I would disagree that there is a difference between 'settled' and 'cancelled'.

You entered into an agreement for a loan, and cancelled it two days later and presumably paid back the money. This settled the matter, hence the term 'settled' on your credit file.

You cannot really expect there to be no mention of the matter at all on your file. And any company thinking of offering you a mortgage would, in my opinion, see no difference between 'settled' and 'cancelled' either. In fact, cancelled could have an unfavourable aspect for you in that the mortgage company may think that the loan company cancelled the agreement for some reason.

But the CCA states re cancellation within the cooling off period

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

How can you report something that, in law, never happened. The associated searches and cancelling / settling the loan outside the statutory cooling off period should of course be reported.

poppasmurf_bewdley

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

The agreement yes. But it says nothing about the credit file.

Lemonsqueezer78

poppasmurf_bewdley wrote: »

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

The agreement yes. But it says nothing about the credit file.

But what justification is there for registering an account for a loan agreement that was not entered in to?

Look at it this way; if an account - ANY account - just suddenly appeared on my credit file for something I had actually never taken out, I would absolutely be able to complain both to the company in question, the CRA and the ICO and I could have the account in question removed from my file. End of. The claim made in these terms and conditions assures - in writing - the same thing. It should be treated as if it had never been entered into. That statement - and the effect of that statement - is crystal clear in my view.

If the agreement is truly treated as if it had never been entered in to - there is therefore absolutely no justification for an account to be shown on the CRA at all. I wouldn't accept this any more than I would accept any company randomly updating an account on my credit file. If there was no agreement,then there is no justification - or even right - to record that account data against me.

[Deleted User]

How did you get on OP?

And, can I ask did your account close automatically with this loan company? (I am just curious having logged onto some kind of revamped Sonny and kind of being reminded there is still an open account)