Can i remove closed account.

Sazzle34

Hi there.

I'm hoping someone can offer some advice regarding a personal loan that I recently applied for an accepted.

I recently took out an unsecured personal loan to consolidate some older debts that I had. A couple of days after accepting the offer and receiving the funds, I decided against the loan and cancelled with full payments returned.

My question is this, as I cancelled the loan within the cooling off period is it right that the bank can update my credit file to show to loan as opened and closed within only a couple of days? I don't feel this is an accurate representing on my financial position and having that on there has reduced the average age of my account.
P.s I have never missed a payment and apart from a couple of recent searches my file is ok.

Any advice would be greatly appreciated.

Thanks,

National_Debtline

Hi Sazzle34 and welcome to MSE,


It seems as though the creditor has accurately recorded the situation, which is what they are required to do. The loan was issued but you correctly exercised your right to cancel using the cooling off period, so you did open and then close an account in a short space of time.


Only inaccurate information can be removed from your credit file. You can write to the bank and request them to remove this and if they refuse you can escalate it to the Financial Ombudsman Service and the Information Commissioner Office (ICO). I am afraid the ICO guidelines don't clearly specify about how to record money borrowed and cancelled with the cooling off period.


Laura
@natdebtline

molerat

National_Debtline wrote: »

Hi Sazzle34 and welcome to MSE,


It seems as though the creditor has accurately recorded the situation, which is what they are required to do. The loan was issued but you correctly exercised your right to cancel using the cooling off period, so you did open and then close an account in a short space of time.


Only inaccurate information can be removed from your credit file. You can write to the bank and request them to remove this and if they refuse you can escalate it to the Financial Ombudsman Service and the Information Commissioner Office (ICO). I am afraid the ICO guidelines don't clearly specify about how to record money borrowed and cancelled with the cooling off period.


Laura
@natdebtline

But the CCA 1974 does. S66A 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

so all record of the agreement should be removed from credit files.

Sazzle34

Thank you for your post. I spoke to the bank and they refused to remove it. I think I will take your advice and escalate to the FOS.