Incorrect default on Credit report affecting credit rating

Milesy4

Hi,

I'm new to the forum. I was hoping for some help or advice on an issue I currently have.

I have recently been looking into getting a mortgage for a house. I would be a first time buyer and up until now I have never had real reason to get credit. When approaching the bank for a Decision In Principle for a home I was declined due to my credit history. I found this both strange and bizarre because I have never previously asked for credit and have never ever missed any payments on any of my accounts.

Since this, I then thought to apply for a credit card as a way of boosting my credit rating. However when doing soft searches for a card and doing eligibility checks for a credit card I had next to no chance of getting a credit card. I could instantly tell that there must be something wrong with my credit rating.

I checked my credit rating and found that it had gone through the floor. I took out car finance with a company and my account had defaulted. My experian report explained that I had missed/been late with six direct debit payments. I can assure you this is not the case. I haven't missed a single payment.

Following this I set up a dispute with experian who will be in touch with the car finance company and also logged a complaint with the car finance company. I have written and email proof from the car finance company explaining my account is fully paid to date for my own record.
I have essentially been told to sit back now and wait for them to sort the mess out. I feel helpless and very frustrated.

I am unclear on a few things and would really appreciate some guidance/pointers.

Firstly I'm unclear whether my credit score will remain affected once/if the incorrect default is removed.
Secondly, I've lost time and have been unable to put an offer in on a property I was interested in due to the problem.
Thirdly, I don't know how all this is going to affect me getting credit going forward.
And finally, I just feel completely messed about, through absolutely no fault of my own.

I feel I should be compensated for this whole episode regardless of when/if the erroneous default is removed.

I'd love to hear from some of you to see where I stand with this.

Thank you in advance.

MysteryCredit

Maybe the ombudsman would be the best route here to get resolution and compensation

Milesy4

Thanks - Would I be right in thinking that I should only go to the Ombudsman if I am not satisfied with the end outcome? Or can I speak to the Ombudsman at any time?

molerat

You could speak to the ombudsman at any time for advice but they will generally tell you to wait out the complaint process unless it is a really serious matter, at the moment you seem to have a relatively minor glitch which should be easily resolved. The company involved may offer you some small compensation, usually in the £20 - £50 range, for the error but you are only entitled to be compensated for any quantifiable loss. What is the timescale of your complaint so far ?

Milesy4

Thanks very much for your reply.

The complaint is still in it's infancy in all honesty so I guess I do need to wait and see what happens for the timebeing.
Could you explain further to me what a quantifiable loss would represent please...
Do you mean as in the default not being removed? Or maybe as in the default being removed but my credit score still being affected?

The thing that has irritated me most is that I have been unable to make an offer for a property I was very interested in. To me, the error made has totally penalized me and hampered my plans.

Hope to hear back from you.

Gaz83

You need to do a bit of reading on the stickied thread about credit scores.

In short - you don't have one. They're fictional.

takman

Milesy4 wrote: »

Thanks very much for your reply.

The complaint is still in it's infancy in all honesty so I guess I do need to wait and see what happens for the timebeing.
Could you explain further to me what a quantifiable loss would represent please...
Do you mean as in the default not being removed? Or maybe as in the default being removed but my credit score still being affected?

The thing that has irritated me most is that I have been unable to make an offer for a property I was very interested in. To me, the error made has totally penalized me and hampered my plans.

Hope to hear back from you.

You really should have checked your credit reports at all three credit agencies months before you thought about applying for a mortgage. This would have meant you could have corrected any mistakes before it resulted in you loosing out.

Also considering that you can check them for free at 2 agencies then this is something that everyone should be doing at least yearly to make sure they haven't been the victim of fraud.

Milesy4

Thanks - I've never missed a finance or direct debit payment so I had no reason to think this would happen.
I've learnt my lesson and now know to do this. I probably didn't need reminding this.

daniel86_2

You should check all three CRAs experian, equifax,and call credit/ noddle ientify which accounts are incorrect and contact the creditor to get the mistake recified as soon as you can. If a mistake has been make they should offer you some sort of compensation. Ive heard people get around £200 from FOS with similar issues but focus more on getting your file recifified then ask for the compensation

Thrugelmir

Milesy4 wrote: »

I've never missed a finance or direct debit payment so I had no reason to think this would happen.

Did you make the payments on time i.e. in accordance with the contractual schedule. Not pay them a few days later when you got paid yourself.

Kim_13

You need to wait for their response before you can go to the Ombudsman, though you can go straight there if they haven't replied in 8 weeks. As your complaint is in, the clock is already ticking.