Identity fraud and credit report

deanoc73

Hello All,

I’ve recently been a victim of identity theft and social engineering where fraudsters took out loans in my names etc. my bank and lenders are currently investigating this. One lender has said they can right the loan off but it will affect my credit rating for the next 6 years. Is there anything I can do to improve or repair my credit rating. Someone had mentioned speaking to the ombudsman? Any help is greatly appreciated 
many thanks 

Brie

Once it's been proved that it wasn't you that took out the loan the bank should be able to put a correction on your credit history.  You should push to have this done logging a complaint with them stating that you are being put at a "financial disadvantage" if they leave this on your credit history.  If they refuse to do anything about this then you should go to the financial ombudsman.  

It is possible that this would remain on your credit history for 6 years either way but if a correction is also posted by the bank there should be minimal effect for you.  

Any other organisation where you apply for credit will look at your history, not your credit rating, and will determine in their own way what effect this might have.  Some may continue to be concerned that you were scammed - some may think this means you will be ultra cautious in the future but others might think the opposite.  Frankly you have no real way of knowing.

MorningcoffeeIV

If you didn't take out the loans, then you stick to that story, have them removed from your files and escalate to FOS if necessary. Tell the lender in question that the loan wasn't taken out by you and that you're disputing it.

You credit rating doesn't matter - what appears on your files is, and you don't want to them to show debts that aren't yours, whether the lender writes them off or not.

deanoc73

Thank you for the replies above, it’s a very complex situation and unfortunately I was severely scammed and tricked by social engineering by the fraudsters. I have raised to police and bank and the individual lenders do the loans. The one lender said they can right it off but it will show on my credit report as missed payments etc so I am trying to be proactive about protecting my credit report if this is the case. I think I will await the outcome of the investigation from all parties involved and then raise with ombudsman if needed. I will not pay back loans that I have not taken out so maybe I just have to struggle for the 5 years it shows on my credit report as missed payments rather than pay back what I haven’t borrowed. The lender support has been disgusting and are very quick to say this loan needs to be paid shocking really, rather than looking at their own processes on how these people can take out a loan in someone else’s name so easily 

Petriix

Let's be clear: there's quite a difference between someone anonymously stealing your identity and someone persuading you to give them sufficient information to easily take out the loan. It sounds like it's more the latter than the former in this case.

It might not be a very comfortable situation, but if you've not acted totally responsibly with your personal information then you might be totally free from legal liability. If it's ambiguous or not totally clear one way or another, the bank may need some persuading to accept full responsibility for the fraud. 

deanoc73

I understand you comments, obvs I am unable to fully disclose all the info as it is a open investigation with the bank and lenders etc but it is very traumatic for myself and I currently feel like it is someone close to me to get such information which is very uncomfortable. My main concern is how I am going to be affect going forward financially. I have always managed my finances and credit rating successfully so it’s a tough situation to be in at present 

MEM62

deanoc73 said:

Thank you for the replies above, it’s a very complex situation and unfortunately I was severely scammed and tricked by social engineering by the fraudsters. 

You have referred to this twice.  Are you saying that you were persuaded or coerced into taking the loans?  It is important to be clear on this point as, if so, this is different to a situation where someone else made fraudulent applications in your name.   

sammyjammy

deanoc73 said:

 I will not pay back loans that I have not taken out so maybe I just have to struggle for the 5 years it shows on my credit report as missed payments rather than pay back what I haven’t borrowed. 

If they remain on your report and you just don't repay them you will eventually get a default, this means it will stay on your record for six years from that date not from when loan is taken out, if a default isn't recorded the missing payments will remain for six years after the loan is repaid.

MEM62

MEM62 said:

deanoc73 said:

Thank you for the replies above, it’s a very complex situation and unfortunately I was severely scammed and tricked by social engineering by the fraudsters. 

Are you saying that you were persuaded or coerced into taking the loans?  I

I guess we will never know.