Mortgage application: Equifax incorrect credit default on partner's file

wine_night

My husband and I are in the process of purchasing a property jointly.

Our mortgage providers have run the credit checks and this has revealed an incorrect default entry on my husband's credit file with Equifax. This is a default reported by BT but the location is in an entirely different part of the country to us. The address is completely different. It is definitely not his debt. Clearly either BT or Equifax have messed up and applied this to the wrong person's report!

We have requested a report from Experian to see whether they have the default recorded but this will take several days to come through. The statutory report we obtained from Callcredit does not have the default recorded. In order to complete the online dispute form for Equifax we have to wait to receive login details through the post.

We're concerned that this could cause significant delays and result in the purchase of the property falling through and incurring costs for an error that is not our fault.

So my first question is how we can get this resolved as quickly as possible? Secondly, once we establish whether this is BT's or Equifax error can we claim compensation if we incur losses during the property transaction if their error causes a delay that results in us losing out on the purchase of the property?

We've never had any defaults and our credit records have always been perfect up until this error which isn't even our fault. Any help would be much appreciated!

ACG

It is probably quicker to find a lender who will accept you with the default or to find a lender who will not pick up on it.

Getting BT to see the urgency in the matter is probably not going to be the easiest thing to do, then you them to update it and Equifax which realistically could take a week or 2 up to potentially a month or 2 or possibly longer.

You are within your rights to submit a complaint to them, it is then down to them to decide if they are in the wrong, you always have ofcom to complain to if they decline your request for compensation.

It might be worth speaking to a broker just to help you overcome the default and keep things on track.

ashp_2

ACG wrote: »

Getting BT to see the urgency in the matter is probably not going to be the easiest thing to do

I don't think BT know what the word urgent means, They are one of the most useless company's I have ever had to deal with. I would head directly for the BT complaint department in writing give them 14 days to respond. Also raise a dispute with Equifax. There have been many cases similar to yours with BT.

You could register with Clearscore, this may give you an exact idea of when the default was added.

wine_night

Thank you for the quick and helpful responses!

The mortgage is a specialist product as we are selling one property we already own into our limited company, remortgaging it and using part of the equity released to fund the purchase of the new property. The two properties will then be funded by a portfolio mortgage. Because of the niche nature of what we require, I'm not sure that there are that many lenders on the market offering that kind of product. We have a broker and are keeping in touch with him about the situation.

Letter will be going to BT tomorrow by recorded delivery requesting response within 7 days. In a way it is reassuring to know that we're not the first and hopefully BT will have a set procedure for dealing with it. Dispute has been raised with Equifax.

With any luck it will be resolved. Will try and keep you posted!

ashp_2

wine_night wrote: »

Thank you for the quick and helpful responses!

The mortgage is a specialist product as we are selling one property we already own into our limited company, remortgaging it and using part of the equity released to fund the purchase of the new property. The two properties will then be funded by a portfolio mortgage. Because of the niche nature of what we require, I'm not sure that there are that many lenders on the market offering that kind of product. We have a broker and are keeping in touch with him about the situation.

Letter will be going to BT tomorrow by recorded delivery requesting response within 7 days. In a way it is reassuring to know that we're not the first and hopefully BT will have a set procedure for dealing with it. Dispute has been raised with Equifax.

With any luck it will be resolved. Will try and keep you posted!

I'm sure you will get if sorted just don't have any expectations of getting it done quickly. You could be looking at weeks rather than days to get it sorted.

ACG

I think there are maybe 2-3 lenders who will lend to ltd companies and accept the defaults. But you are right, your options to begin with were probably limited so it does make it tricky but based on what you have said I would not rule it out.

Give your broker some time, he/she probably has quite a few calls to make, but if they took this on to begin with then they must have some confidence in their ability.