withdrawn from credit agreement - loans (effect on credit file)

CarmelEvans

my loan provider provident said that if i withdraw from the credit agreement and pay the borrowed amount + accrued interest in full immediately then the credit account wont show on the credit file and pretty much wont exist other than the hard search from the original application.

can anyone confirm if this is standard practice? are they doing this out of courtesy or is there a rule that any trace of the loan on your credit file (e.g if they reported it as a closed settled account) be deleted or not reported? does this same concept apply to the hard searches the lender used on the original application or just the credit account / agreement itself not being visible to other lenders in future?

thanks for your answers in advance

[Deleted User]

That's correct.

CarmelEvans

Deleted_User wrote: »

That's correct.

Correct that they can't report the credit account (visible to other lenders) to your file if withdrawn from the agreement + settled or that they are doing it as a courtesy / it's not standard practice?

[Deleted User]

It's standard practice for it not to be reported.

CarmelEvans

Deleted_User wrote: »

It's standard practice for it not to be reported.

what about the hard search related to the credit application? would they be disputable to remove from my file as part of the withdrawal or is it still considered valid and they wont remove them at all?

appreciate your answers.

molerat

https://www.legislation.gov.uk/ukpga/1974/39/part/V/crossheading/cancellation-of-certain-agreements-within-coolingoff-period

(4)Except as otherwise provided by or under this Act, an agreement or transaction cancelled under subsection (1) shall be treated as if it had never been entered into.

They cannot report it as in law it never existed. The credit search however did take place and will stay, the same as if you were refused or turned down the loan.

CarmelEvans

molerat wrote: »

They cannot report it as in law it never existed.

thanks for citing that. provident seem to know the law :j

im curious about the hard searches though as i asked zx81 above. surely if it never existed then the hard search made from the application of that withdrawn agreement should be removed from my file too?

molerat

You applied for credit. You had the option to not take the loan, the search would have remained. They could have refused the loan, the search would have remained.