Error on file/Mortgage looming

Facknats

Oh dear....

Just under three years ago, I lost my debit card and a direct debit didn't quite go through for a loan while the wrong number was registered on their records.

I read the email (notice of arrears) almost immediately and paid up within 20 minutes. They cancelled the late fee and sent email confirmation that the arrears notice was to be disregarded.

I'm now applying for a mortgage- and there's a one month late notice on my credit file! It was paid less than 20 minutes late! The lovely post office have said that this alone is likely to get me declined. Now, I've contacted the loan provider obviously and asked for them to rectify their mistake- but any update is likely to take 30-45 days to show on my file.

Now, is there any way to provide the email evidence I have that the notice of arrears was to be disregarded and any written confirmation from the loan provider, via my mortgage advisor to the underwriter? Is it something the underwriters will take into account or will it simply be a case of 'computer says no' and I'd have to wait the 30-45 days for a file update?

_pale_

[Deleted User]

You can show them email evidence yes.

Although losing a card doesn’t warrant a DD not going through so not sure how the two are linked??

bazzyb

It sounds like it wasn’t paid 20 minutes late, but rather 20 minutes after they advised you it was overdue and you were in arrears.

A late payment marker can be added if the payment is even so much as a day late although many lenders offer a grace period. You should know what date the payment was due and what date you received the email, there is probably a significant gap between the two?

Gaz83

How does a lost bank card affect a direct debit?

Facknats

I didn't think it did either.. they said since the card had changed they couldn't take payment.

Payment was due 30th June and made 30th June.

Update: passed on to the loan companies appropriate team for review- kicking myself obviously as I had thought I'd done a thorough review of my file over the past year in preparation.

Advisor says the underwriter *could* accept written confirmation from the loan company that the late payment will be removed rather than wait 30 days for a credit file update.. but it's slim.

sambaird

Probably wasn’t a direct debit - more likely a Recurring Card Payment.

It was common for payday loan companies to use this as a method of payment instead of direct debits.

Unlike direct debits, Recurring Card Payments are linked to the card number and not bank account details, so if the card was lost and cancelled, the loan company would not be able to take payment - as a totally new card number would be issued.