BG settled arrangement to pay stopping me get a mortgage

Hindy97

Hi, 

Me and my husband are struggling to get a mortgage due to issues I have had with British Gas. This had been ongoing for quite some time about amounts I owed them and disputes I had. I have 4 late payments marked last year with the last 'late' payment noted in June last year and from July it states agreement in place on my credit file from July last year until March this year when it was paid off.

They passed the debt to BW legal in June and an arrangement was put in place, which I wasn't aware this would be marked against my credit file every month and marked against British Gas, I thought BW Legal would have bought the debt and the arrangement was directly with them, not British Gas.

Has anyone else had this experience and able to say why the agreement shows with British Gas? Rather than BW Legal and if you think I have any recourse of having this removed off my file.

My husbands credit file is clear and score is perfect. 

Thanks

MattMattMattUK

Hindy97 said:

Hi, 

Me and my husband are struggling to get a mortgage due to issues I have had with British Gas. This had been ongoing for quite some time about amounts I owed them and disputes I had. I have 4 late payments marked last year with the last 'late' payment noted in June last year and from July it states agreement in place on my credit file from July last year until March this year when it was paid off.

They passed the debt to BW legal in June and an arrangement was put in place, which I wasn't aware this would be marked against my credit file every month and marked against British Gas, I thought BW Legal would have bought the debt and the arrangement was directly with them, not British Gas.

Has anyone else had this experience and able to say why the agreement shows with British Gas? Rather than BW Legal and if you think I have any recourse of having this removed off my file.

If the late payments and agreement to pay are factually incorrect then they will stay on the file. The debt is listed with the original debtor, BW legal may have bought it but most likely were acting on behalf of British Gas.

Hindy97 said:

My husbands credit file is clear and score is perfect. 

Credit scores are meaningless, you can safely ignore it. The missed payments on your file are what matters, lenders see them as a good identifier of future issues (which in many cases they are). They should not stop you getting a mortgage but they may well make it more expensive. If you are applying directly with a bank you will probably get rejected, but an independent mortgage broker will be able to get you a mortgage, though they may advise you to wait a while before doing so if the AtP was only showing as satisfied in March. 

Hoenir

If credit files weren't an accurate representation as to how people manage their personal finances. They'd be of no value to underwriters and risk management teams in finance companies. Over the years the amount of data has progressively grown. Enabling far better profiling of potential applicants and ascertaining whether they meet the criteria set. 

MWT

Hindy97 said:

They passed the debt to BW legal in June and an arrangement was put in place, which I wasn't aware this would be marked against my credit file every month and marked against British Gas, I thought BW Legal would have bought the debt and the arrangement was directly with them, not British Gas.

BW Legal are a law firm acting on behalf of BG to collect debts, they do not have to own the debt to do that and it is unlikely that they bought the debt as you confirm it still shows as BG on your credit file.

Similarly when you make an arrangement to pay it does not alter the fact that until you have paid in full the arrangement will show on your credit file.

From what you have said, all of this is accurate, you owed the money, you didn't pay the full amount when due, so there are no obvious grounds for getting these markers removed...

EssexHebridean

AP markers are a pain - unfortunately they will stay on your file for 6 years (5 in Scotland) from the point where the debt was cleared. You could try making an argument that you weren't informed that making the arrangement would affect your credit file if that is the case, but I suspect it was mentioned somewhere to be honest - it usually is.  Realistically, your best way forwards now is to ensure that the rest of your credit file is as squeaky clean as possible, and find a decent broker.