Unknown debt default showing on credit record

magyar

I recently applied for a car loan and got accepted but at a higher rate of interest than I expected, which rather surprised me since credit record should be good.

I checked Equifax and discovered there is a defaulted loan against my name but for an address I don't recognize in a completed different part of the country for £975, registered by Lowell Group who appear to be a distressed debt purchaser, with no other info other than that it appears to be on behalf of a communications company.

I contacted Lowell who refused to give me any information, simply said "there must be someone with a similar name" (very unlikely, I have an uncommon surname). I have registered a correction with Equifax but their web site implies all they will do is write to Lowell and ask them to remove it.

I've spoken to Sainsbury's Bank, who offered me the loan, and explained - however they simply say they can only go on what is actually on the credit report (and actually didn't really confirm that was what the problem was). This doesn't really surprise me.

Does anyone know what the best way is of solving this relatively quickly, as I do want to get out the car loan but I would end up paying over £1000 in additional interest at the higher rate.

Candyapple

Follow the advice in post #11 in this thread:
https://forums.moneysavingexpert.com/discussion/5650944

Regarding your loan there's nothing you can do now. Sainsburys have offered you a loan, you either accept it or you don't. You will have to wait until the default has been removed from all 3 of your files then apply again elsewhere if you want to try for a lower rate loan.

magyar

Thanks for the advice. Interestingly, the default is only showing on the Equifax report, not the other two. This implies to me it's a data error with Equifax? Is this common?

[Deleted User]

No. It's much more likely that they only report to Equifax.

magyar

Ah OK, thank you - didn't realise they reported differently, I assumed all the credit agencies basically gave the same result. I've been using the free MSE service, which checks Experian and have never seen anything untoward on there - thus my surprise when I was told there was an issue by Sainsbury's.

magyar

Well this turns out to be somewhat harder than I expected!

Equifax say they can do nothing without being instructed by Lowell. In turn, Lowell just kept telling me "if you didn't live at this address then this is 'not you' and so we won't remove it, you need to contact whoever made the 'link' and ask them to contact Equifax".

I managed to get out of Lowell that this relates to an O2 account which was taken out in my name but at an incorrect address, however they specifically said it 'passed a credit check'. O2 were actually relatively helpful and have passed to their fraud team to investigate.

I have registered with Action Fraud and got a crime number, which I've passed to all three and hopefully this will encourage them to take it more seriously...

But quite ridiculous that as the completely innocent party in all this, I have to do all the running around!

sourcrates

You should make a complaint to the ICO (Information commissionaires office) if this remains unresolved.

They deal with all data protection complaints.

magyar

Thanks, having read up on it, does appear to be the best port of call.

PixelPound

magyar wrote: »

Equifax say they can do nothing without being instructed by Lowell. In turn, Lowell just kept telling me "if you didn't live at this address then this is 'not you' and so we won't remove it, you need to contact whoever made the 'link' and ask them to contact Equifax".

True the CRA's just report what they are told. Lowell's "its not you" sounds like a fob.

magyar wrote: »

I managed to get out of Lowell that this relates to an O2 account which was taken out in my name but at an incorrect address, however they specifically said it 'passed a credit check'. O2 were actually relatively helpful and have passed to their fraud team to investigate.

I have registered with Action Fraud and got a crime number, which I've passed to all three and hopefully this will encourage them to take it more seriously...

But quite ridiculous that as the completely innocent party in all this, I have to do all the running around!

It could be that O2 placed the default and lowell simply updated it, but what seems worrying if you have never lived at the address, then why is it fraud? Surely fraud is when someone takes something out using your details without your knowledge? If somebody takes something out at an address that you have never lived at, then its not necessarily fraud, it's just they've connected it to the wrong person. So it could have passed a credit check, doesn't mean it was your credit file that was checked!

For it to be on your credit file it needs liking to an address you have been at, so I am assuming as this was taken out at an address you never lived at then at some point it has been connected to one you were. Was this by O2 or by Lowell? Also you do know CRN are just a number entry on a database, I'm not sure it will be taken more seriously - it's just companies may not investigate further without one (to stop people wrongly claiming fraud to get out of debt rather genuinely not being their debt).

magyar

Thanks for the note. The reason I think it’s more likely to be fraud than a simple error is that I have very uncommon name, I can find no evidence of anyone else in the country with the same name, let alone with the same date of birth.

O2 have confirmed that their database shows me as being the person linked to this debt and since I have no other relationship to O2 this record can only have been set up by the person who took out the account.

magyar

nic_c wrote: »

True the CRA's just report what they are told. Lowell's "its not you" sounds like a fob.

It could be that O2 placed the default and lowell simply updated it, but what seems worrying if you have never lived at the address, then why is it fraud? Surely fraud is when someone takes something out using your details without your knowledge? If somebody takes something out at an address that you have never lived at, then its not necessarily fraud, it's just they've connected it to the wrong person. So it could have passed a credit check, doesn't mean it was your credit file that was checked!

For it to be on your credit file it needs liking to an address you have been at, so I am assuming as this was taken out at an address you never lived at then at some point it has been connected to one you were. Was this by O2 or by Lowell? Also you do know CRN are just a number entry on a database, I'm not sure it will be taken more seriously - it's just companies may not investigate further without one (to stop people wrongly claiming fraud to get out of debt rather genuinely not being their debt).

The incompetence is astounding.
- Lowells flatly refuse to remove or amend the record in any way. In order to 'investigate it' they wanted my current address and postcode, i.e. a company that I don't trust already with my data has asked me for more of it. My favourite bit was that they sent me their 'customer complaints procedure', Since I'm not a customer, I am merely someone they illegally hold data on, I didn't see the relevance.
- Equifax claim that O2 made the 'link' to the incorrect address. They agreed to contact O2 and arrange for it to be removed.
- O2 claim that they've got no record of my real address, so couldn't have made the link.
- Equifax keep closing the complaint every time they write to me.
- None of them seem in the slightest bit concerned about resolving the issue, nor that I've contacted the ICO.

It's got to the point where I've noted down all the various costs (time and money) that this is taking up: £20 for a CIFAS registration and several hours of calls.