Experian punishing me for settling a debt early!

makka

Hi all. I think this is quite complex so i'll do it it short points to hopefully get the facts across easier!

* Had a DMP years ago
* Owed IDEM approx £2000, paid them an agreed amount as per the plan, but because it was less than the original agreed amount - was getting red marks on my experian every month - fair enough.

* 13 months ago, came off the DMP and agreed direct with IDEM to pay £58 a month. Everyone was happy and had ten months subsequently of green ticks.

(I have one negative on my Experian, a 'delinquent file' which this is. I was told after 12 months of not missing a payment, it no longer is classed as delinquent and would disappear. )

*After 10 months of paying this (Dec 2016), i wanted to apply for a mortgage, and was in a position to settle the remaining balance with IDEM of £850. I contacted both Idem and Experian who informed me that settling this early would have no bearing on this delinquent file being removed after 12 months.

* I settled the IDEM account.

* But now, my 10 green ticks are 'frozen in time' with the 2 last red marks still visible. Now Experian are telling me that I should have continued just paying the £58 for another 2 months to get my 12 consecutive payments in, and that the actual time passed is irrelevant! So i'm being punished for settling early! And that it will now be visible for 6 years!

I was yesterday refused a mortgage in principle because of my credit score (826). This has really set me back as I feel I have been misled by Experian. Both have basically said now 'Not our problem'

Could anyone please shed any light and/or the next step for me?

marliepanda

Its unlikely your credit score affected your mortgage. It is based on your credit history, and with a DMP finishing only 12 months ago (though with debt still outstanding), your history is not good.

makka

The reason given on the 'DiP' (Decision in Principle) by the TSB, was
"The application has not passed the credit score".

KoshB5

You've failed on the TSB internal scoring driven off your credit history, lenders have their own scoring based on their lending criteria / business model.

marliepanda

makka wrote: »

The reason given on the 'DiP' (Decision in Principle) by the TSB, was
"The application has not passed the credit score".

That's not the score on your Experian.


There have been people on here who get declared bankrupt and have 999 scores Theyre not getting mortgages.

Chrisblue1962

I wish people would realise that the so-called credit scores created by Experian and alike are UTTERLY MEANINGLESS because lenders have their own INTERNAL credit rating and scoring systems !

It's not Experian lending you the money...its TSB , Lloyds, Baclays, Santander, whoever, etc etc The only sure-fire way to find out if you're creditworthy is to apply for a loan / mortgage / credit card and get a decision from the provider / lender - anything else is rubbish.

DCFC79

Chrisblue1962 wrote: »

I wish people would realise that the so-called credit scores created by Experian and alike are UTTERLY MEANINGLESS because lenders have their own INTERNAL credit rating and scoring systems !

It's not Experian lending you the money...its TSB , Lloyds, Baclays, Santander, whoever, etc etc The only sure-fire way to find out if you're creditworthy is to apply for a loan / mortgage / credit card and get a decision from the provider / lender - anything else is rubbish.

Part of the problem is people eg those in TV adverts, the customer service reps mention the credit score is poor hence the decline and everyone believes the credit score/rating is what lenders see.

Be easier to just scrap the score altogether.

Marktheshark

Pushing for a settlement by the debt form is often a sign they have discovered they do not hold the deed of assignment or CCA documents and a panic to claw back what they can before you demand they produce them.

Ben8282

makka wrote: »

The reason given on the 'DiP' (Decision in Principle) by the TSB, was
"The application has not passed the credit score".

Are you sure ?

makka

Yes @Ben8282. My mortgage advisor forwarded me the Email he received.

DIP Result Declined:
Credit Score Fail

Based on the information provided the Decision in Principle for your above client(s) has unfortunately been declined for the
following reason(s):
The application has not passed the credit score.
As this is a credit score fail, an appeal against this decision will only be considered following submission of a full application
together with a letter from your client clearly stating their reason(s) why the decision should be reviewed.
Please note your Service Centre has no visibility of this case and is unable to take any further action on your behalf

Superscrooge

it will be TSB's internal scoring that you failed.

TSB couldn't give 'two hoots' whether Experian give you a score of 999 or 826.