Should I pay now?

somanyworries

I don't even know how to explain my situation so please bear with me.

I am looking to buy a house and have gotten an AIP, thanks to my broker. Who says that my credit score is not all that bad.

I checked it myself and its got a decent score for a mortgage, or so I a told. What I am worried about is that I keep getting contacted by Lowell to settle a debt that is under £80s. The debt is from Tesco mobile from 4 years ago.

It was a sim only plan and they had charged me about £40 one month for data usage. Needless to say at the time I was stupid and was not thinking of credit scores and all sorts. I never paid.

Now I get letters and calls from Lowell. Who say if I pay they will show it as settled on my credit file.

The thing is, it doesn't even show up on my credit file. Even under open and closed accounts.

So far it is just an AIP, I don't want it to be that when I go to get the actual mortgage this comes up to bite me in the backside.

So should I pay it now or not? My concern is that if I pay it, they will somehow put it on my credit file, where there was none to begin with. Or should I hold off until I have my mortgage, hopefully within this year?

Will this show up in the full mortgage credit check? If I am not seeing it now?

I hope that made sense.

Thank you so much for your help in advance!!!

Candyapple

Do you realise that there is no such thing as a credit score? It is only a marketing gimmick used by the credit reference agencies to get you to buy into their guff so you can keep your subscription open and they get to keep your money by giving you monthly numbers that lenders pay no attention to.

Lenders do however have their own in-house 'scoring' policy which will be made up of numerous factors such as your age, how long you've lived at your address, salary, your credit history etc. That is probably what your broker is referring to.

Don't forget that there are 3 credit reference agencies so you will need to check with all 3 of them to see what information they have on you.

Call Credit (Noddle is their free version)
Equifax (ClearScore is their free version)
Experian (pay £2 only to get a copy of your report) http://www.experian.co.uk/consumer/statutory-report.html


Get those first and then come back and let us know what info is on all 3.

Some lenders absolutely will not lend if a default is on your credit files, some disregard defaults from mobile providers, it all depends. Too early to say without knowing if the info is even showing on all 3 of your files, or even 1 of them.

somanyworries

I used Noddle. I have tried ClearScore, but I do not understand why it keeps showing the loading sign when I put in the details for my employment. It just shows loading for absolutely ages.

And when I tried the experian one, I got this message:

Sorry there has been a problem

Unfortunately your application for a credit report has not been accepted because there is a problem with the service.

Your card has not been debited.


You may wish to send a written application....


Only noddle worked without a hitch. Although I remember I used Experians free Credit Match or whatever service and they gave me like 922 score (but as you say its a gimmick).

Any help on getting clearscore and experian to work? Clearscore is still showing the loading sign as we speak.

Candyapple

No idea about Clearscore and the loading problem, can you not log into your account and just view your report? Clearscore only use the employment data you give them to spam you with marketing offers for credit cards/loans. It's not essential to opening your account.

As for Experian, just print off the pdf copy and send it in the post if you are having problems online.

somanyworries

Okay I just signed up to ClearScore again with a new email and it worked nicely.

456 out of 700, I guess thats good? Yes I know, I know its gimmicky, but its reassuring lol.

Anyways to be honest I dont know where to look, where should I start?

Many thanks again. Sorry I am new to all of this.

EDIT: I got 1 negative for You have no active credit card accounts.

Which is true, i've never had a credit card.

somanyworries

I've looked through Clear Score I cannot find anything related to it. Any specific menus I should be looking in?

Candyapple

For Clearscore, first of all it will say on the overview page near the bottom under positives:

'You have no accounts in Default or Repossession'.

Does yours say this?

To see if the Tesco/Lowells account is even showing go to 'Report', then 'Accounts' and see if you can find it there, or it might be under the 'Closed' accounts section.

In Noddle click on 'My Credit Report' then 'Financial Account Information' then scroll down to 'Other accounts' as this is where Telecoms would be. Is the account showing there? Or in the closed accounts section?

With regards to Experian, you definitely need a copy of this as well. Just because it might not be showing on Equifax or Call Credit, does not mean it won't be showing on your Experian file. Pay the £2 and either view a copy of your file online or ask for the paper copy to be sent to your address.

somanyworries

@all

Thank you for the replies, I am waiting on Experian, who said they will email me within 24hours to give me something (cant remember what now), and then within 4 days to tell me report is ready. I think they just want me to sign up for their 14.99 a month service. I would've taken the free offer, but I used it up like 2 years ago, and I had no idea what it even meant back then. Lol.

I have checked Noddle and ClearScore, they seem fine. Thank God. Now I am waiting on the Experian. My heart really is beating.

Blinking_Giraffe

As per CandyApple, nothing showing up under closed accounts? As regards to Experian they will send you a code so that yo can log onto their website to see your statutory report - for a limited period of time.. No need to pay the monthly subs.

I believe that Tesco use Equifax and Call Credit so you might already be in the clear.. I'm surprised that Tesco haven't got it logged as a default.

Do you pay or don't you? Lowell buy up old debts with no proof. I came to these forums with such a problem with a debt that wasn't my daughter's and beat them. It sounds like you recognise it as your debt so if your credit files are clear and you pay it no further damage can be done. Personally, I would ask them to prove that it is your debt which could lenghten the period of time that by the time a decision has to be made you could already have your mortgage. And, if you do contact them - in writing only.

Blinking_Giraffe

http://www.legalbeagles.info/forums/showthread.php?83284-Lowell-Default-woes!

Just doing a bit reading and came upon this {not sure if I can paste links} on Legale Beagles. I know that Lowells are a nasty bunch so how knows. Qyoute below

"I log on to my Experian to discover that Lowell had updated my credit file on the 26/06/2016 and added a default backdate to December 2012?!

This has sent my score plummeting to 777 and the default is now active on my credit file. My previous near perfect score has been decimated by paying a debt in full on the day of notification!

I spoke to Experian today and they confirmed the default was not present until the 26/06/16 so effectively I have now been penalised for paying a debt! Experian have raised it as a query with Lowell however.

I also spoke to Lowell who said there is nothing they can do and I will have to wait a further 2 years for this be removed. "

Nasqueron

It is my understanding if you pay or acknowledge a debt inside the 6 years between the default and the debt being statute barred then the clock is, if not reset, at least "stopped" so it won't vanish

In that example, if the debt was defaulted 12/2012 then it wouldn't be statute barred until 12/2018 and acknowledging the debt confirms this - perhaps the original owner of the debt didn't post the default but it sounds like it was correct - it should show the debt is satisfied but the default was correct