Payday Loans & Credit File Information

anitaparrott78

Hi all.

I'm looking for an information or experiences people may have had with Payday Loans and the information reported on their Credit Files. Unfortunately between early 2013 and late 2016 I got stuck in a trap of using Payday Loans and got in to some real bother.

Sorry if this is in the wrong place but I've been reading some of the threads on Payday Loans and theres a lot of negative comments posted in some of the threads to people that borrowed using Payday loans which has put me off posting before now. I really don't need telling how stupid I was or that I shouldn't have borrowed what I couldn't afford etc etc, all of that is pretty unhelpful at this late stage. Lets just say I've learnt my lesson......

Back to the questions I have...... So some of the loans have been written off due to un-affordable lending, not something I pursued but something a number of the companies did, I assume due to new regulations etc, however I hadn't completed repaying a significant number of the loans when they were written off. These "satisfied" loans are still showing on my credit files, with the payment history, under closed accounts.

So question 1 is that if they were written off due to un-affordability then the entries should be removed from your file?

Question 2 is as these are under closed accounts do they affect my "credit score"?

Question 3 is is it worth trying to get them removed and does anyone have any experience of this?

Thanks in advance

Anita

[Deleted User]

1. No

2. No - you don't have a credit score or rating

3. Why?
It's an accurate representation of your account management at that time. Be grateful the debt is being written off.

cymruchris

As above.

They'll disappear off your files after 6 years. Until then, you'll have a challenging time (but not impossible depending on your other circumstances) getting a mortgage.... So if you're thinking of buying a house any time in the next year or so, speak to a specialist.

Willing2Learn

Hi Anita and welcome to the forum

anitaparrott78 wrote: »

So question 1 is that if they were written off due to un-affordability then the entries should be removed from your file?

Question 2 is as these are under closed accounts do they affect my "credit score"?

Question 3 is is it worth trying to get them removed and does anyone have any experience of this?

According to the FOS:

… We’re also likely to tell a lender to make sure their customer’s credit file doesn’t have any adverse information recorded about the loans we’ve identified as unaffordable. If we decide that someone's pattern of borrowing has become clearly unsustainable, we’re likely to tell the lender to get these removed from their customer’s credit file completely.

Source: https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/payday-loans


So, if the loans were proven to be unaffordable and unsustainable, then it appears that the associated negative data reported on your credit file could be removed.

cymruchris

Willing2Learn wrote: »

Hi Anita and welcome to the forum


According to the FOS:

Source: https://www.financial-ombudsman.org.uk/businesses/complaints-deal/consumer-credit/payday-loans


So, if the loans were proven to be unaffordable and unsustainable, then it appears that the associated negative data reported on your credit file could be removed.

Interesting - I wonder how they decide what's unaffordable - and how consumers would get to find out this bit of info... And how it might work where some of the payday lenders are no longer in business...

anitaparrott78

!!! wrote: »

1. No

2. No - you don't have a credit score or rating

3. Why?
It's an accurate representation of your account management at that time. Be grateful the debt is being written off.

Like I said I didn't want negativity, well done for some really helpful information there...... who are you to judge my personal situation or anyone elses for that matter? :mad:

anitaparrott78

cymruchris wrote: »

As above.

They'll disappear off your files after 6 years. Until then, you'll have a challenging time (but not impossible depending on your other circumstances) getting a mortgage.... So if you're thinking of buying a house any time in the next year or so, speak to a specialist.

Thank you cymruchris, yes it is about buying a house, possbily next year so I'm looking ahead. Other credit I have been successful in getting, credit card and car loan, so I know some of it hasn't mattered to those lenders however getting a mortgage could be more challenging I'm thinking because of all the subprime problems around 2008.

[Deleted User]

anitaparrott78 wrote: »

Like I said I didn't want negativity, well done for some really helpful information there...... who are you to judge my personal situation or anyone elses for that matter? :mad:

Not negative or judgey at all - I gave you answers plain and simple.

ndf9876

So question 1 is that if they were written off due to un-affordability then the entries should be removed from your file?

Possibly - depends if the Ombudsman recommends it (often they do in cases where they find in favour of the complainant)

Question 2 is as these are under closed accounts do they affect my "credit score"?

No such thing as a "credit score" - it's a made-up number - but different lenders may view these in a dim light, closed or not, depending on the type of credit product you apply for (e.g. mortgage - it's typically harder to get one with PDLs kicking around on there).

Question 3 is is it worth trying to get them removed and does anyone have any experience of this?

I made several complaints a while ago; in all but one of the complaints the decision was to remove the entries from my credit file which was duly complied with. If you look at some of the past ombudsman decisions against payday lenders (https://www.ombudsman-decisions.org.uk/) you'll see this regularly but not always forms part of an upheld complaint outcome.

xlnc99

anitaparrott78 wrote: »

Easy and golden platter..... no not at all..... I've worked my **** off to get out of debt and so I should as I made the mistakes. My question is about a very small percentage. As I said in my last post to you I don't need judging, people make mistakes, people from all walks of life and you don't know the situation that took me down that path and I never said I wanted it easy.

People like you with your comments and attitude are the reason people don't seek help sooner. Perhaps had I felt comfortable speaking about my money problems I wouldn't have ended up where I am today, but through fear of judgement........

Ignore Gary, he is the forum Janitor. Always around on every thread spreading negativity and incorrect information most of the time.

MEM62

anitaparrott78 wrote: »

Like I said I didn't want negativity, well done for some really helpful information there...... who are you to judge my personal situation or anyone elses for that matter? :mad:

There is no judgement in that response at all. Just an answer to your questions.

anitaparrott78 wrote: »

Perhaps had I felt comfortable speaking about my money problems I wouldn't have ended up where I am today, but through fear of judgement........

Is it possible that fear is making you over sensitive?

If you post on an open forum you will get a range of responses, not all are correct as people (me included) often think they know things and they don't and, in addition, some replies are sugar coated and some are blunt. You will get the full range but most are genuinely trying to be helpful.

There is no judgement in that response from Gary and he has answered all the questions that you asked.