Unfair late payment markers

Mazfitz83

I need to buy a new car so thought I'd check my credit reports first to make sure everything is in order. Experian looks fine, score is 953 which is 8 points away from excellent (I know, the score means nothing!) Everything on my report is showing as up to date, all payments made on time.

My score on Equifax is good (albeit at the lower end I think, 453) When I look at the details it's showing my repayment conduct assessment as being poor. I've looked through all the listed accounts, and everything is up to date and on time, bar one account. Background is that this account was owned by Santander/New Day, and was sold on in 2014. The account was paid every month by direct debit, but when it was sold the direct debit was cancelled. I wasn't immediately aware of this fact (both the sale or cancellation) but as soon as I found out I rang to get the direct debit set back up. No problems since. The person I spoke to on the phone said it would be fine as it hadn't gone into default, when I asked about the error effecting my credit. Liar! So now almost 2 years on I have a late payment marker for 3 months, which is going to have a massive impact on my ability to obtain credit. I've asked them if they could remove it due to the fact that it was essentially a technical error rather than me actually avoiding the payment. They've said there's nothing they can do, so I've raised it to an official complaint.

So, bearing in mind everything else is up to date and these are the only payments I've 'missed', am I likely to be refused credit on the basis of them? I've opened one credit account since the late payments were logged (Mothercare baby plan), but I'm guessing that this was only credit checked with Experian, as I can't see a search on Equifax.

Mazfitz83

Oh and to add insult to injury, the payment was only for £5!!!! My entire credit history could be ruined over the sake of £5. As if I'd purposefully not pay such a petty amount. It also infuriates me that my SIL was able to buy a car on finance despite having shockingly bad credit previously - defaulting on loans, not paying off previous car finance etc. But because this was over 6 years ago it'll be off her report, yet my payments are impeccable bar this error, and I'll likely be declined!

National_Debtline

Hi

I know it's frustrating but I wouldn't say your entire credit history is ruined because of a few late payments. Creditors would interpret the information on your file based on their own criteria if you apply for credit. The late payments may not be an issue at all.

James
@natdebtline

Mazfitz83

National_Debtline wrote: »

Hi

I know it's frustrating but I wouldn't say your entire credit history is ruined because of a few late payments. Creditors would interpret the information on your file based on their own criteria if you apply for credit. The late payments may not be an issue at all.

James
@natdebtline

Thanks for the response. Everything I've read online though indicates that a 90 day late payment is one of the worse things for effecting your credit, and it's viewed as badly as a CCJ etc. Under the circumstances of how it arose, what do you think are the chances of me getting them to remove it?

Arleen

One late payment (that was paid after 3 months, not went into default) two years ago is not going to make you unworthy of any credit. It may stop you from passing automatic-acceptance and having to be looked over by a person. And if that is your only issue, beside having a pristine and long history then I can't imagine this as being a major hurdle.
People who say that it is viewed as badly as CCJ are not exactly wrong either, assuming that it's just an account in arrears, not a late payment that was paid since. That is because most of late accounts tend to default, and are treated as such in many cases.

As for getting it removed, I don't see why. It's up to you to keep up with payments, and they for sure notified you of both direct debit cancellation and the need to set up new payment methods. If they didn't do that, that may be grounds to get it removed but that is a very long shot.

GingerBob_3

Arleen wrote: »

One late payment (that was paid after 3 months, not went into default) two years ago is not going to make you unworthy of any credit. It may stop you from passing automatic-acceptance and having to be looked over by a person. And if that is your only issue, beside having a pristine and long history then I can't imagine this as being a major hurdle.
People who say that it is viewed as badly as CCJ are not exactly wrong either, assuming that it's just an account in arrears, not a late payment that was paid since. That is because most of late accounts tend to default, and are treated as such in many cases.

As for getting it removed, I don't see why. It's up to you to keep up with payments, and they for sure notified you of both direct debit cancellation and the need to set up new payment methods. If they didn't do that, that may be grounds to get it removed but that is a very long shot.

Because it is promoting the idea that this person is a bad payer and can't be trusted with credit, neither of which appear to be true. In this case it's not a direct lie being perpetrated by the CRAs, but it's the next best thing - information which is highly likely to be misinterpreted.

Arleen

As mentioned before one late payment doesn't make you a bad payer. It only reflects the reality that in your entire credit history two years ago you had a 3 months slip for 5 pounds, nothing more, nothing less. And this is the whole point of having CRAs as a whole, to give potential lenders a clear and honest picture of how given person runs their accounts.

It will really help you to understand three things that are at play here:
1. One late payment on otherwise premium history is not end of the world, especially if it was settled after those 3 months and it now properly shows as settled.
2. This entry is your fault as you were notified of direct debit cancellation (had to be) and changes in the way you have to pay in the future. If they didn't then that is a ground to have it removed and if you can't settle it up with them, escalate further but it is a very long shot.
3. Credit score is meaningless, lenders don't see it and thus they don't use it. They only see your file, and that is the important part.

Thrugelmir

Mazfitz83 wrote: »

which is going to have a massive impact on my ability to obtain credit.

Says who...?

Mazfitz83

GingerBob wrote: »

Because it is promoting the idea that this person is a bad payer and can't be trusted with credit, neither of which appear to be true. In this case it's not a direct lie being perpetrated by the CRAs, but it's the next best thing - information which is highly likely to be misinterpreted.

Exactly this. From what I've read, a 90 day late payment is viewed really badly no matter how clean the rest of your report is. The lenders are just going to see this and computer will say no because it looks like I don't pay things. Everything I have is paid by direct debit and is always on time.

Mazfitz83

Arleen wrote: »

As mentioned before one late payment doesn't make you a bad payer. It only reflects the reality that in your entire credit history two years ago you had a 3 months slip for 5 pounds, nothing more, nothing less. And this is the whole point of having CRAs as a whole, to give potential lenders a clear and honest picture of how given person runs their accounts.

It will really help you to understand three things that are at play here:
1. One late payment on otherwise premium history is not end of the world, especially if it was settled after those 3 months and it now properly shows as settled.
2. This entry is your fault as you were notified of direct debit cancellation (had to be) and changes in the way you have to pay in the future. If they didn't then that is a ground to have it removed and if you can't settle it up with them, escalate further but it is a very long shot.
3. Credit score is meaningless, lenders don't see it and thus they don't use it. They only see your file, and that is the important part.

I've discussed this with them and they sent 2 letters, one to say that the account had been sold to them by Santander, and another letter to remind me that it'd changed hands and to arrange payment methods. I don't dispute this as obviously they will have sent letters, but for whatever reason I didn't receive anything. The first letter I physically received was the one saying I'd not paid for 3 months and that I risked my account going into default. Obviously I then rang them straight away to find out what had happened and get my payments sorted. I can remember the advisor at the time saying not to worry about my credit as the account hadn't gone into default.

I have no reason to lie about this - every payment prior was paid by direct debit, and every payment since, along with all my other payments to other creditors. I pay everything that is due, so why on earth would I purposefully ignore a letter asking me to reinstate a payment method, for a measly £5 a month?! Why would I read this letter and think, oh I'm not going to bother paying this for a couple of months?! Under the circumstances I don't see why they can't remove the entries, they know exactly why it happened and that it wasn't intentially not paid, the account has been ran perfectly since, and what does it really matter to them? It means everything to me if it could impact on me getting a bigger car which I need (a surprise 3rd child that doesn't fit safely in our car, and unfortunately I can't save to buy a decent one outright cash, because where do I put her while I do?!) I also wanted to apply for a mortgage next year to buy the house we currently rent, it could impact on this too. A £5 error is potentially playing a big part in my life.

Mazfitz83

Thrugelmir wrote: »

Says who...?

Everything that I've read says that late payments can seriously effect your ability to obtain credit in the future.