Incorrect default date driving me insane!

onthemend88

Hi everyone!

We will be applying for our first mortgage very soon and due to previous adverse credit, will be using a broker and applying through a subprime lender.

All of our defaults and CCJ's are >3 years old, all paid off and we have had no issues since.

Our current issue is that DH took out HP on a vehicle in Feb 2016 and VT the car in April 2016 due to several mechanical faults and a tampered odometer. Obviously doing this, we were still liable to pay just under £6000 but refused.

A default was issued in September 2016. We made made complaints with the company and have been back and forth with them until we received a final response from them in Feb 2019 saying there were no faults with the car and odometer was normal.

FOS complaint was submitted in April 2019 and still ongoing. The company were found to be at fault by the adjudicator however the company disagreed with them and it has been with an ombudsman for a final decision since.

During this time, the original company passed the debt on to Arrow Global in March 2019 who were then starting to report to the CRA's a default date of April 2019 (over 2.5 years after the correct default date).

After a complaint to Arrow Global and 3 months of waiting until this was resolved, the default date was changed back to what it should be and we made a partial settlement in preparation for our mortgage application. The account was only recently being reported to transunion and experian and we have been waiting for it to show on Equifax.

As a result, we check Equifax daily and low and behold, last Friday, the account was finally showing...but with the incorrect default date of April 2019 and the full account balance still showing unpaid!

I've raised another complaint with Arrow and have also registered a case with Equifax and uploaded all of my evidence but really don't know how long this will take to get resolved.

My worry is, when we put our mortgage application in, the account in question may still show as the default date of April 2019 with Equifax and if this is the case, it could affect the rate of interest we would be charged (based on our debts being >3 years old interest would be 3.49% but based on the default date showing as April 2019, we could end up paying back 5.74% interest - this is a worst case scenario)

I am really hoping (praying actually) that this gets resolved soon but if it doesn't, will the lender base this on the default date being April 2019 with Equifax even though it is showing correctly with Experian and Transunion or would it be a 'simple' case of providing the evidence to confirm the default date is showing incorrectly on Equifax?

Really really sorry for the long post!

Westminster

I see you will be using a broker - excellent decision.

Don’t even consider going direct to a lender with this history - you need a specialist broker who will be worth their weight in gold.