Identity theft/fraud on credit file - anyone have positive stories about correcting?

ElmTree0512

Hi everyone
Firstly, sorry for the lengthy post but I just want to give as much context as possible! I’ve read a few threads relating to this but my partner’s experience seems a bit different (and is scaring us).

At the moment we rent from friends but they’ve told us they may sell next year due to ill health. Amazingly they have given us first refusal so we excitedly/nervously started to ‘get our ducks in a row’.

We got our credit files from CheckMyFile. Mine was as expected (good) but my partner’s showed lots of discrepancies. Some are genuine accounts (small fuel cards, phone contract) he thought he had closed but hadn’t, so he’s immediately settled those. 

Alarmingly, his old bank (Lloyds) have an outstanding debt against him. He’s going to see them next week to find out what it is - he had to close his account with them in 2019 after he had money stolen and redirected to a fraudulent account. He’s actually due to be refunded this money in the coming weeks after taking Lloyds to the FOS. At no point in the 2 years fighting with them has anyone ever said “Oh by the way, you owe Lloyds money”. Hopefully we’ll get answers next week.

Finally, the scariest thing is that he has around 4 payday loans on his file and a couple of debt agencies (which look to be linked to the loans). On a couple of occasions over the years he has had random letters appear for loans that aren’t his; he’s always informed the company and reported them to Action Fraud, then never heard anything more. We never expected to see them on his credit file (naive!).

We’ve started the painstaking process of trying to speak to every lender to confirm these loans are not his. We’ve also logged fraud causes with the CRAs and started some disputes via Resolver. The accounts use his name (although not in full), his address and DOB but none have ever contacted him by email or telephone and he has never been in receipt of any funds from them. Oddly, some are showing as having payments made to them - one creditor confirmed they were getting payments for 18p a month through a debt management scheme (not from my partner and he has never been in a debt management scheme in his life!).

Has anyone else ever experienced this kind of fraud and had success at clearing it off their file? It feels so hard trying to prove a negative

Sorry again for the long post. I’d be so grateful to hear of anyone else’s experiences of similar and coming out the other side. We feel really stuck and very anxious. 

[Deleted User]

You don't have to prove a negative. The lender has to prove a positive.

It may take a while but it'll all be resolved. But don't wait until next week to visit a branch. They won't be able to help and it will be quicker and easier to sort it online.

ElmTree0512

Thanks for your reply @Deleted_User! I really hope we can get it resolved. One lender came back and wouldn’t uphold our complaint although all they did to justify it was explain why missed payments had been recorded and that they have a duty to share this information with CRAs. We replied to say we are not disputing why they do it, we are disputing the fact the account is being recorded against the wrong person. Gave them the crime reference number and asked that it be escalated to their fraud team so waiting again now (have reported to CRA too). Even if it was fully paid up and looked wonderful, my partner doesn’t want it on his credit file because it’s not his loan!

RE the bank, no one will speak to my partner about his account unless he goes into the branch it was opened and then closed at *sigh*. His first visit actually resulted in another complaint (at the suggestion of a bank employee) because he was fobbed off by a customer service person at the desk. When he phoned the next day another woman said he was told the incorrect information so she logged a complaint, made sure his case was flagged to the specialist in the branch he needs to speak to (she was on hols at the time) and it’s her he is seeing next week. He spoke
to her on the phone this week when she returned from hols, and she has confirmed she’s pulled his account up and can see it’s in dispute. He also told her he wants all his statements (figured they are our best proof for showing he’s never had any of these pay day loans) and she said she can do that. Personally I’d like letters from them confirming he was never in receipt of any loans if it comes to that! Not sure how likely that’ll be though but you don’t ask you don’t get.

It’s such a headache and I’m really rubbish when it comes to being patient/not worrying, especially because we feel like we’re on a deadline now with the house. Trying to stay positive and people on here always seem to have such great advice and good moral support x

sourcrates

Unfortunately these things can take a long time to resolve, there are various stages to go through, and you need to be speaking to the right people, as different call handlers at banks tend to give out opinion, rather than fact.

I would not bother with Resolver, as companies tend to just ignore it, complaints are best made in writing, and addressed to either the "complaints department", or the "fraud department" of the particular bank, usually these departments are not able to be contacted by the customer directly, and have  to be referred.

This will ensure the right person deals with your complaint, you should get a phone call from a member of that team in due course, giving you a chance to explain in detail, what has happened, and how you want them to put things right.
You need to bypass the customer service call handlers, and the only way to do this is to complain in writing.

You must allow the banks time to deal with these complaints, they usually have 8 weeks in which to issue you with a final response, after that time, if you remain unhappy, you can escalate to the financial ombudsman, but it is not a quick process and can take many months, although the FOS has now taken on extra staff to deal with back logs.

ElmTree0512

Thank you @sourcrates. We have accepted we’re probably in it for the long haul to fight it all. We logged fraud disputes with all CRAs yesterday via their portals/online processes - we’ve tried to do everything in writing wherever we can. I think where we’ve had no response at all we will need to get formal letters written. 

We started speaking to a mortgage broker just as we discovered the incorrect accounts (she came very heavily recommended) and she keeps saying she will help us and has even given us some hypothetical options given what’s going on. It’s nice she doesn’t feel like all hope is lost but it still all feels very frightening. I’m a worrier and keep thinking that, if we can’t get everything sorted, we’re going to be stranded trying to find another rental with a (very well behaved) dog in tow. I’m definitely a worse case scenario kind of person! 

   

The FOS have actually been great with our case against Lloyds. It was taking so long (on Lloyds part) that they escalated it to a senior case handler (correct title?) and she gave us her direct line. She’s been great at keeping us updated - when we realised they had logged a debt against my partner she was completely puzzled and said they have never mentioned any of it at any point in correspondence, all while agreeing to give him money back. She said if we need help in relation to it as part of the ongoing dispute she will look into it for us. We’re just really baffled as it’s not a small amount they’ve marked against him either so we’re wondering if more money was taken by the fraudsters after he transferred to his new bank (although the account should have been immediately frozen/closed). We’ll soon know I suppose. Just trying to stay positive in the hope it manifests some positive results although I find it very hard and soon get myself in a tizz all over again.

ElmTree0512

Hi again,
Just wanted to provide an update.
Received a letter today from 118 118 (one of the companies reporting to my partner’s credit file though he has never had a loan with them. A DCA are also reporting to his file linked to this loan).

They have confirmed the account and any collections have been put on hold pending a fraud investigation and they have asked that we submit a crime ref number to their fraud team directly (we already have this as we reported it to Action Fraud) so we will do this later today. The strangest thing is he did get a letter about this loan last year and at the time he got in touch with them to ask why they were contacting him about a loan that wasn’t his (we have referenced this in our complaint). They said they would be sending out a form so he could confirm details but they never did (and we stupidly assumed that was the end of it because he’d told them and we never received any further correspondence or contact). 

As already mentioned, partner is at his old bank tomorrow so hoping once we have all his statements we can confirm proof of no loan payments/repayments too. All feels very frightening! 

ElmTree0512

Hi everyone

Another update on this and not a happy one (although quite long so my apologies).

My partner had his meeting with Lloyds today to get an explanation about the money he apparently owes them.

The person at branch said that, apparently, when he switched accounts to TSB following the fraud theft from his Lloyds current account, TSB didn’t switch all his DDs over quick enough. They said that some of his bills therefore continued to go from his Lloyds account, putting him in an unarranged overdraft and thereby incurring continuous interest for two years.

They let my partner put another complaint in but they said he now needs to also go and complain to TSB. They said the debt will be frozen now (although didn’t give him this in writing so he’s going to go back and ask for this) and that they can’t really talk to him any further about it because it’s with a DCA so he needs to speak to them (?!). This doesn’t fill me with hope about the ‘freezing’ comment.

He has NEVER had communication about any of this from Lloyds. They showed him letters they had apparently sent but he never received them (I know that this is his word against theirs). Throughout his entire complaint case with them about the money he originally had stolen, part of the problem was they kept ‘sending him forms’ to complete but they would NEVER come. They have the correct address so we could never understand what the problem was.

He’s now asked for all of his statements and they advised they should be with him in a week (she couldn’t print them in branch because he is ‘no longer a customer’) but considering nothing ever arrives with us from them, I’m not so convinced these will either which will mean another trip back to branch. Absolutely at a loss with this bank, I could scream! He’s never had a phone call about any of this, no emails either. The DCA has never been in touch.

My question is, when it was a bank transfer that was fraudulently intercepted from his Lloyds bank account which led to the switch and the account being closed, how on earth were direct debits even allowed to go from it? Should it not have been frozen/closed so those DDs failed? Are Lloyds not in the wrong here for allowing activity to commence on an account which, as far as he knew, was frozen and - by their admission (also confirmed with FOS) - was vulnerable to fraud?! 

He’s now going to go into TSB to get their side and see what has happened. On looking at his online account with them, he can see some of his DDs went out as normal the month following the switch so it’s really confusing.

I could cry. We desperately need to save for a deposit by next year and with all this going on I feel like we’re going to have no options and will have to leave the house we’re in which we so desperately want to buy! 😔

MattMattMattUK

You can get these things resolved. I had a problem with bank account and phone contracts being opened in my name several years ago, whilst I caught it early (less than a week after it initially happened) I got the whole thing resolved in less than a month (and most of that was waiting for the details to be removed from the credit reports) so it is manageable. 

If you are being told you are being sent lots of post, but not receiving it, have you checked on how your post is delivered, is there any way someone can access it (eg external mail box in a flat rather than say through the door) and it would also be worth checking that there is not a redirect in place with Royal Mail. 

Take the time to go through your full report from each of the CRAs, make sure you have everything covered so you can be sure what is and is not yours when asked, as due to this going back quite a while it might take a bit of work to clarify everything with the multiple institutions involved. 

ThisnotThat

ElmTree0512 said:

Hi everyone

Another update on this and not a happy one (although quite long so my apologies).

My partner had his meeting with Lloyds today to get an explanation about the money he apparently owes them.

The person at branch said that, apparently, when he switched accounts to TSB following the fraud theft from his Lloyds current account, TSB didn’t switch all his DDs over quick enough. They said that some of his bills therefore continued to go from his Lloyds account, putting him in an unarranged overdraft and thereby incurring continuous interest for two years.

They let my partner put another complaint in but they said he now needs to also go and complain to TSB. They said the debt will be frozen now (although didn’t give him this in writing so he’s going to go back and ask for this) and that they can’t really talk to him any further about it because it’s with a DCA so he needs to speak to them (?!). This doesn’t fill me with hope about the ‘freezing’ comment.

He has NEVER had communication about any of this from Lloyds. They showed him letters they had apparently sent but he never received them (I know that this is his word against theirs). Throughout his entire complaint case with them about the money he originally had stolen, part of the problem was they kept ‘sending him forms’ to complete but they would NEVER come. They have the correct address so we could never understand what the problem was.

He’s now asked for all of his statements and they advised they should be with him in a week (she couldn’t print them in branch because he is ‘no longer a customer’) but considering nothing ever arrives with us from them, I’m not so convinced these will either which will mean another trip back to branch. Absolutely at a loss with this bank, I could scream! He’s never had a phone call about any of this, no emails either. The DCA has never been in touch.

My question is, when it was a bank transfer that was fraudulently intercepted from his Lloyds bank account which led to the switch and the account being closed, how on earth were direct debits even allowed to go from it? Should it not have been frozen/closed so those DDs failed? Are Lloyds not in the wrong here for allowing activity to commence on an account which, as far as he knew, was frozen and - by their admission (also confirmed with FOS) - was vulnerable to fraud?! 

He’s now going to go into TSB to get their side and see what has happened. On looking at his online account with them, he can see some of his DDs went out as normal the month following the switch so it’s really confusing.

I could cry. We desperately need to save for a deposit by next year and with all this going on I feel like we’re going to have no options and will have to leave the house we’re in which we so desperately want to buy! 😔

I'd imagine if the account was frozen, the switch would be rejected.  Presumbaly they'd have to leave the account in a "normal" state to allow a switch to go through.

ElmTree0512

Thank you for your positive words @MattMattMattUK. I really hope we can get things resolved quickly too. It's frightening that it seems it can be done so easily and has really knocked us for six. Again, it's naivety on our part thinking that simply reporting strange letters is enough (he's only ever had sporadic one off letters from DCAs over the years, never the original creditor). Because they 'went away' after he challenged them, we thought that was the problem dealt with. Certainly looking into whether there are any redirects going on with the mail - our post comes direct to our door (and is then alerted to by the dog!)

Again @ThisnotThat thanks for taking the time to reply on this thread too. My phrasing is probably not quite accurate, I think his account was frozen while they investigated and then upon confirmation he'd had money stolen he actioned the switch to TSB. There's never been any communication from TSB so say anything failed and given his perseverance with chasing Lloyds for so long, we're just so shocked no one at any point made reference to him apparently ignoring a sizeable charge logged against him. As mentioned on the other post, he's heading to TSB tomorrow so hopefully we'll find out more.

Thank you again for responding and apologies for messing my threads up, I'm a bit of a panicked newbie but everyone's advice is helpful and I'm really grateful. 

kaMelo

I think you need to separate the fraud case you have with the FOS and this balance your partner potentially owes HSBC. The fraud case is with the FOS and will be dealt with in due course.

The money HSBC say your partner owes them seems, from what you've said, to be down to an error when switching accounts. Any mistakes that happen due to a switch under the CASS guarantee are down to the gaining bank, TSB in this case, as they are liable for any costs incurred due to a mistake under the switch guarantee.  However, the caveat is the new bank will tell you when a switch is complete. Until this time you should make sure enough funds are available to cover any payments due from your old bank.  


If the switch was deemed "Complete" by TSB and the direct debits were taken after this date then it would appear TSB are at fault. If the direct debits were taken prior to the switch being deemed "Complete" by TSB then, unfortunately, it would appear they are not. The exact dates matter here.

I have to say though it would be highly unusual for a bank to transfer funds from a bank account prior to transferring direct debits, certainly I've never experienced it that way around, usually it's the opposite with payments switched first. The transferring of the funds is usually the very last thing done as the account is closed at the same time as the funds are transferred, preventing this kind of thing from happening.
I'm not saying it couldn't happen, just having switched many times I've never seen it happen.