Debt managers on credit file.

Rivett1998

Hope someone might be able to give me some advice on this subject. My partner and I are looking at buying a house in six months or so and so we need good credit scores. She has had a Very account fraudulently set up In her name by her mother and it has gone to debt managers. The company says she needs to report her for fraud for them to do anything but she wont. So my question is how will this effect her credit score and will it prevent a mortgage in the next 6 months.  Any advice would be greatly appreciated. 

Kiwistrawb1990

Is it defaulted? If so it'll stay on her credit file for 6 years.
Best to satisfy it in full right away if she won't go down the fraud route. 

Fighter1986

She's either got to pay it off in full and get it closed right away or follow very's advice.

Her mother committed a criminal offence against her ... I won't get into the moral implications, but from a legal standpoint the process is simple. Report the fraudsters activities to the police, pass on the crime reference number to the lender, and they will deal with getting the account annulled. 

If the account shows up as defaulted, and your partner is unwilling to report her mother, it will have an adverse effect on her credit rating for six years, even if paid off in full and settled. 

Any payment made towards the account by your partner will be seen as admission that the account and debt are hers, which will prevent her from having it annulled if she later decides to follow the process of reporting the fraudulent activity, so think very carefully before paying a penny towards the account. 

It's a very sad situation and I don't envy your moral position at all. God speed with your decision 🙏

Rivett1998

My missus has, spoke with the debt managers company. They say as the account was defaulted it cant be taken out of my partners name. They said if her mom writes and accepts that she opened the account without her knowledge they can put a note of correction on the credit file which explains why the account was defaulted. Will the note of correction actually help? Any information you guys know would be useful thanks. 

Fighter1986

The NOC won't help. It won't remove the default. Anyone can add a NOC saying whatever they want on their credit file, it isn't considered fact, just a note. 

Chances are it would make matters worse. Avoid having any notices of correction on your credit files. 

Carrot007

A notice of correction will probably make things worse.

A default can be removed by mutual consent.

So it will come down to. pay off the debt and the costs of removal and get it in writing before you give them the money. They do not have to do it if they don't want to though. But as a company that exists purely to ghet money they probably will. (If you can talk to the right person).

Rivett1998

Thank you for all the previous replies. Last question on this issue. My partner has contacted the agency and they are refusing to change the debtor name from my partners to her moms even tho she said she would sign any relevant docs to say she did this. We have no choice but to contact the police and i have convinced my partner to do so. My question is we have evidence to prove beyond a doubt her mother set up this account in her name and her mom is willing to admit to it. If this gets proved will the debt be taken out of my partners name. Thank you for all whi replied you have been extremely helpful.