credit score recently reduced by long term issue 30 October 2021 at 1:29PM in Credit file & ratings 12 replies 292 views

bluemonday3

My mortgage provider has recently changed their systems, so I have a new account number.  I have both a mortgage and an unsecured loan which they obtained a CCJ for and charging order since I entered into a DMP over 11 years ago.
The CCJ & charging order were agreed in 2010.  Since then my credit score has been stable and over the last couple of years improved significantly.  I have no plans to take on further credit, but I am annoyed to find that my credit score has been updated by the mortgage provider today to show that I am more than 6 months in arrears with my loan ( I have approx £2300 arrears which I am slowly paying off)  My credit score is now trashed.  Is there anything that I can do about this.  Any advice would be very much appreciated.
      

MalMonroe

As many others on here will be along to say, your credit score is never seen by anyone else but you. It's the credit report that's the most important thing and that's what lenders see. Whilever you're in debt or in arrears, that will show on your credit report. As you are not wanting to take on any more credit, it shouldn't be a problem.

If you need any help with your debt, though, have you considered contacting one of the free debt help agencies such as Stepchange? They helped me so much when my debt wasn't as high as yours and now I am debt free. It took a few years, yes but it didn't take half as long as it would have taken without their help and guidance.

Their link here - https://www.stepchange.org/

It's worth a free phone call just to see if you could be helped in any way to get rid of that debt sooner, rather than later. Even if they say they can't help, you'll have lost nothing. 

bluemonday3

Thank you for replying.  The credit report shows the arrears so will be seen by lenders?
Stepchange have supported me in the past, however I would not have got the CCJ if I had continued to pay the contractual monthly payment but stepchange would not allow this.  With hind sight I would not have taken their advice but then with hindsight I would not have got myself into the debt mess in the first place! I have learned some harsh lessons      

sourcrates

It`s your credit history that has been updated to show the arrears on your loan account, not your score.
It is perfectly normal for a lender to do this, as it accurately reflects the circumstances, and how the account has been managed.

You say you entered debt management 11 years ago, how many creditors did you have, and what was your level of debt ?

If the contractual repayments were unaffordable, then debt management was probably the right choice, you can`t stop creditors taking legal action, however these days, affordability is taken much more into account, and you would most likely not have got a CCJ had you started a DMP nowadays, its a different financial world from 11 years ago.

bluemonday3

Thank you for replying. My score has gone right down now as a result of the account being added onto the credit report. I appreciate it is an accurate reflection but just wondering why now after all this time. I cannot accurately recall the debt level when I entered the DMP but I had approx 7 creditors and cleared over £30k of debt. I’m no longer in the DMP, since Dec 2017 when my debt was just over £1k and had been passed to so many different DCAs that I stopped paying. My unsecured loan has outstanding arrears of £2300 but I have been chipping away at this for years and it’s not been an issue until now with the change of account details.

[Deleted User]

Please, ignore the score, nobody ever sees it but you. It going up or down has no reflection on whether you will get credit or not.

The data on your file, if correct, is an accurate representation of your affairs, what the score says is irrelevant as it's nothing but a gimmick

bluemonday3

Thank you for your reply. I just wonder why now they have posted this on my credit file after all these years? The CCJ and subsequent charging order was issued in 2010, but now the arrears on the report have just been added since the change in how they manage the account. 

Whilst I appreciate comments re the score, the arrears being added do seem to have affected me. I understand that they are true arrears but just wonder why now?!

SusieT

bluemonday3 said:

Thank you for your reply. I just wonder why now they have posted this on my credit file after all these years? The CCJ and subsequent charging order was issued in 2010, but now the arrears on the report have just been added since the change in how they manage the account. 

Whilst I appreciate comments re the score, the arrears being added do seem to have affected me. I understand that they are true arrears but just wonder why now?!

I may be way off track with this, but if you have had a CCJ on this account, then to my mind there would have been a default prior to that happening? If that is true, then the whole account should have dropped off the credit report in around 2016, and should not reappear. It may be worth contacting the creditor and pointing out that they cannot add it again once it has been defaulted. 

bluemonday3

Thanks for your reply. To be honest that was my thoughts exactly and why I am seeking advice.  I’m not very good at these things but it’s the time that has passed for me that has made me question it’s re-appearance 

sourcrates

SusieT said:

bluemonday3 said:

Thank you for your reply. I just wonder why now they have posted this on my credit file after all these years? The CCJ and subsequent charging order was issued in 2010, but now the arrears on the report have just been added since the change in how they manage the account. 

Whilst I appreciate comments re the score, the arrears being added do seem to have affected me. I understand that they are true arrears but just wonder why now?!

I may be way off track with this, but if you have had a CCJ on this account, then to my mind there would have been a default prior to that happening? If that is true, then the whole account should have dropped off the credit report in around 2016, and should not reappear. It may be worth contacting the creditor and pointing out that they cannot add it again once it has been defaulted. 

No, you are spot on, we all missed that, the whole entry, default/CCJ should have dropped off file at the 6 years point.

The advice from SusieT is exactly what you should do, the reporting of that account should have ceased at some point in 2016, so you need to make an official written complaint about this.

bluemonday3

Thank you, to be honest this is why I asked for advice as I wondered why now this has appeared as this is going back to 2010!
Do I just write to the mortgage/loan company and ask them to remove it?
I have not done this before so not sure how to go about this.