Bad credit history due to a company advising me to let an account go unpaid!

MarkNero

Hi, so this is an unusual situation. Last year I was diagnosed with terminal cancer and set about closing all my credit card accounts due to being on end of life care. It was around December last year to March when I dealt with several companies and getting my accounts in order. All bar one company were very sympathetic and upon receiving the doctor/oncologist report and DS1500 letter, they shut the account without any or little issue. Apart from one, who dragged their feet, were difficult to deal with and eventually advised I would have to default the account so they could eventually close it down. I stopped paying the monthly amount to them on their say so. Now, I'm looking for a small mortgage so my wife and I can get out of rental and have a home I can spend my last days in and I can't get a mortgage because this company have put me down as defaulting on the account. I'm shocked and upset and unsure how to go about approaching them as I put a complaint in originally and they came back after looking at the case and said they didn't think they had done anything wrong. I won't name them, but I really need to know how I can get my account cleared from default as they were so difficult to deal with and I'm not sure I've got the will to go through the hassle of it all in my state. Surely, as they were obliged to close the account, they shouldn't be black marking my credit? This is very unfair and I again don't know what to do!

retiredbanker1

How would you repay any mortgage if you got one?

MorningcoffeeIV

MarkNero said:

This is very unfair and I again don't know what to do!

It doesn't seem unfair as they told you they would default the account, so it shouldn't have been a surprise to you.

Given your circumstances, it's very unlikely to make a difference to your chances of getting a mortgage.  You need to assess your finances as a whole to review your options.

born_again

I'm sorry for you situation that the cancer has put you in, I would be surprised if you could actually get a joint mortgage anyway with your terminal cancer.
Your wife on her own should be OK so long as the money side meets their lending criteria. 

cymruchris

To be fair, personal circumstances aside, if they said 'we'll put a default on' that's exactly what they've done. It's good that the majority of providers closed accounts without fuss, but they don't have to, as you've found out. The record is factually correct. There's a chance you could try and rely on their good nature by offering to settle the debt in exchange for the removal of the negative markers, citing the fact that you are going through a very emotional and challenging time, and didn't understand the implications of the actions taken. However, as has been mentioned, I'm not sure a mortgage would be possible with your diagnosis.

Does your wife have a reasonable credit history?

As an alternative approach, it may be worthwhile ensuring that all of your accounts are separated (Nothing in joint names) and then double checking all of your credit reference reports to make sure that you are no longer financially associated. This would allow her to apply for a mortgage without any reference to your own history. If she applies in her name now, and you have joint accounts, the mortgage providers will likely look at both of your credit histories, even if you're not involved in the application.

The challenge to this is that it takes time for everything to happen and update accordingly.

Is she in a position to make a sole application based on her personal circumstances?

Have you spoken to a mortgage specialist rather than just looking across the internet at what's on offer?

eskbanker

MarkNero said:

Surely, as they were obliged to close the account, they shouldn't be black marking my credit?

What made you believe that they were obliged to close an account if you still owed them money?

emperormessia

I’m sorry about your situation I hope you recover fully and live a very long healthy life.

You have stated you want a mortgage how do you go about making repayments?