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Credit Reference File Clean Up Post Bankruptcy
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Posts: 40,544 Forumite
Updated 21/05/2023 by Sourcrates
Post #1 - Credit Reference File Clean-up post bankruptcy.
Post #2 - Letter to former lenders post bankruptcy.
Post #3 - How to raise a complaint with the Information Commissioner.
Post #4 - List of Data Controllers.
CREDIT REFERENCE FILE CLEAN UP – POST BANKRUPTCY
There seems to be a lot of questions around about what is a clean credit file and what is not, so in an attempt to clear up some of the confusion, here are some examples of what you should be looking for and what you can do if it is not like these:
Let us assume for this that the date of bankruptcy was the 1st April 2006 and discharged on 22nd November 2006
Key information that should be shown:
Default date MUST be NO LATER than 1st April 2006 (date of the Bankruptcy)
Settlement date (where shown) MUST be NO LATER than 22nd November 2006 (date of Discharge)
Experian (or CreditExpert)
Before clean up
Entry Number: C3
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2003
Default Balance: £3,582
Current Balance: £3,582
Defaulted On: 15/08/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
After Clean Up
Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2003
Default Balance: £3,582
Current Balance: Satisfied
Defaulted On: 01/04/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
Or
Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Special Instruction Indicator: Partial Settlement
Special Instruction Start Date: 02/2007
Started: 22/01/2003
Default Balance: £3,582
Current Balance: Satisfied
Defaulted On: 01/04/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
Now with Experian this will mean that the account will come off the system 6 years from the default date
If the default date is LATER than your bankruptcy date, or the account is NOT marked as satisfied (including partial settlements) then is it INCORRECT and you will need to follow the advice in post #2 of this thread.
Equifax
Before Clean Up
Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ £ 0 (Monthly)
Start Balance: £0
Current Balance: £3,582
Status: Defaulted
Credit Limit: £0
Date Updated: 08/05/2006
Start Date: 22/01/2003
Date Last Delinquent: 05/06
Date Satisfied:
Default Date: 08/05/2006
Default/Delinquent Balance: £3,582
Payment History: Lots of little numbers but the default one will be in May 2006.
After Clean Up
Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ £ 0 (Monthly)
Start Balance: £0
Current Balance: £0
Status: Settled
Credit Limit: £0
Date Updated: 15/06/2007
Start Date: 22/01/2003
Date Last Delinquent: 05/06
Date Satisfied: 22/11/2006
Default Date: 01/04/2006
Default/Delinquent Balance: £3,582
Payment History: Lots of little numbers but the default ( a red D ) will be in March 2006 and the Settled ( a green S ) will be in November 2006.
Sometimes but not always, the entry will be followed by:
Customer Account Status
Status: PARTIAL SETTLEMENT
Explanation: Payment received as a full and final settlement although the payment would not fully clear the balance.
Now with Equifax this will mean that the account will come off the system 6 years from the default date
If the default date is LATER than your bankruptcy date, or the account is NOT marked as Settled (including partial settlements) then is it INCORRECT and you will need to follow the advice in post #2 of this thread.
Transunion
You can access your Transunion credit report for free through Credit Karma.
Equifax and Experian will both provide a statutory report for a £2 fee.
How Much Does It Cost Getting Them Updated?
Honest answer is very little:
You need to obtain your reports, which can be done on line or by post, the cost of the statutory report is £2
The cost of a recorded letter to each of your former creditors and/or debt buyers
After 2 months you need to check them again to ensure that the former creditors / debt buyers have updated
The cost of posting a complaint to the ICO if the former creditor doesn’t up date
So basically not a lot and hell of a lot cheaper that the companies that charge for this will charge you.
In my case I had 18 creditors so the total cost for me (using statutory reports) was £23.20, which was about 1/3 of the cost the nearest ‘Well do it for you’ company charged!!
How Long Will It Take Getting Them Updated?
From the time you receive your CRFs’ and send your formal request for the creditors to update.
Allow 28 days (plus about 14) for the files to update.
If they have NOT been updated after 2 months then raise the complaint to the ICO
The ICO is SNOWED UNDER so you need to allow them around 60 days.
Total time about 3 months
Why Should I Bother?
This is one that is asked periodically, well…..
Once the accounts are marked as satisfied and the account is correctly closed with the creditor / debt buyer.
They can’t sell it on to another debt buyer, so you won’t get hassled in the future, with DCA that won’t believe you have been bankrupt – There have been instances f this happening 4 – 5 years after bankruptcy where the files have not been cleaned
Your CRFs will automatically clean after 6 years from default/settlement date, so you will have a squeaky clean file from then. – There have been MANY instances where former creditors only close the account off several years after your discharge, thus knackering your CRF’s for many many years. In effect creating a very bad CRF for a lot longer than 6 years and in the worst case I have heard off a full 11 years!!!!!
Your accounts will be marked as settled in the meantime, which is a positive move, and you will be able to rebuild your life much quicker.
OK – So Who Do I Get My Files From?
I STRONGLY urge you ONLY to get your files from the Credit Reference Agencies and NOT from the sub agencies. The sub agencies buy their files from Transunion and the information is often even more incorrect and out of date.
Instructions for obtaining your files can be found here:
https://ico.org.uk/for-the-public/credit/
How do I do this then?
Follow the advice in post #2 of this thread.
Post #1 - Credit Reference File Clean-up post bankruptcy.
Post #2 - Letter to former lenders post bankruptcy.
Post #3 - How to raise a complaint with the Information Commissioner.
Post #4 - List of Data Controllers.
CREDIT REFERENCE FILE CLEAN UP – POST BANKRUPTCY
There seems to be a lot of questions around about what is a clean credit file and what is not, so in an attempt to clear up some of the confusion, here are some examples of what you should be looking for and what you can do if it is not like these:
Let us assume for this that the date of bankruptcy was the 1st April 2006 and discharged on 22nd November 2006
Key information that should be shown:
Default date MUST be NO LATER than 1st April 2006 (date of the Bankruptcy)
Settlement date (where shown) MUST be NO LATER than 22nd November 2006 (date of Discharge)
Experian (or CreditExpert)
Before clean up
Entry Number: C3
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2003
Default Balance: £3,582
Current Balance: £3,582
Defaulted On: 15/08/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
After Clean Up
Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2003
Default Balance: £3,582
Current Balance: Satisfied
Defaulted On: 01/04/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
Or
Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Special Instruction Indicator: Partial Settlement
Special Instruction Start Date: 02/2007
Started: 22/01/2003
Default Balance: £3,582
Current Balance: Satisfied
Defaulted On: 01/04/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
Now with Experian this will mean that the account will come off the system 6 years from the default date
If the default date is LATER than your bankruptcy date, or the account is NOT marked as satisfied (including partial settlements) then is it INCORRECT and you will need to follow the advice in post #2 of this thread.
Equifax
Before Clean Up
Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ £ 0 (Monthly)
Start Balance: £0
Current Balance: £3,582
Status: Defaulted
Credit Limit: £0
Date Updated: 08/05/2006
Start Date: 22/01/2003
Date Last Delinquent: 05/06
Date Satisfied:
Default Date: 08/05/2006
Default/Delinquent Balance: £3,582
Payment History: Lots of little numbers but the default one will be in May 2006.
After Clean Up
Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ £ 0 (Monthly)
Start Balance: £0
Current Balance: £0
Status: Settled
Credit Limit: £0
Date Updated: 15/06/2007
Start Date: 22/01/2003
Date Last Delinquent: 05/06
Date Satisfied: 22/11/2006
Default Date: 01/04/2006
Default/Delinquent Balance: £3,582
Payment History: Lots of little numbers but the default ( a red D ) will be in March 2006 and the Settled ( a green S ) will be in November 2006.
Sometimes but not always, the entry will be followed by:
Customer Account Status
Status: PARTIAL SETTLEMENT
Explanation: Payment received as a full and final settlement although the payment would not fully clear the balance.
Now with Equifax this will mean that the account will come off the system 6 years from the default date
If the default date is LATER than your bankruptcy date, or the account is NOT marked as Settled (including partial settlements) then is it INCORRECT and you will need to follow the advice in post #2 of this thread.
Transunion
You can access your Transunion credit report for free through Credit Karma.
Equifax and Experian will both provide a statutory report for a £2 fee.
How Much Does It Cost Getting Them Updated?
Honest answer is very little:
You need to obtain your reports, which can be done on line or by post, the cost of the statutory report is £2
The cost of a recorded letter to each of your former creditors and/or debt buyers
After 2 months you need to check them again to ensure that the former creditors / debt buyers have updated
The cost of posting a complaint to the ICO if the former creditor doesn’t up date
So basically not a lot and hell of a lot cheaper that the companies that charge for this will charge you.
In my case I had 18 creditors so the total cost for me (using statutory reports) was £23.20, which was about 1/3 of the cost the nearest ‘Well do it for you’ company charged!!
How Long Will It Take Getting Them Updated?
From the time you receive your CRFs’ and send your formal request for the creditors to update.
Allow 28 days (plus about 14) for the files to update.
If they have NOT been updated after 2 months then raise the complaint to the ICO
The ICO is SNOWED UNDER so you need to allow them around 60 days.
Total time about 3 months
Why Should I Bother?
This is one that is asked periodically, well…..
Once the accounts are marked as satisfied and the account is correctly closed with the creditor / debt buyer.
They can’t sell it on to another debt buyer, so you won’t get hassled in the future, with DCA that won’t believe you have been bankrupt – There have been instances f this happening 4 – 5 years after bankruptcy where the files have not been cleaned
Your CRFs will automatically clean after 6 years from default/settlement date, so you will have a squeaky clean file from then. – There have been MANY instances where former creditors only close the account off several years after your discharge, thus knackering your CRF’s for many many years. In effect creating a very bad CRF for a lot longer than 6 years and in the worst case I have heard off a full 11 years!!!!!
Your accounts will be marked as settled in the meantime, which is a positive move, and you will be able to rebuild your life much quicker.
OK – So Who Do I Get My Files From?
I STRONGLY urge you ONLY to get your files from the Credit Reference Agencies and NOT from the sub agencies. The sub agencies buy their files from Transunion and the information is often even more incorrect and out of date.
Instructions for obtaining your files can be found here:
https://ico.org.uk/for-the-public/credit/
How do I do this then?
Follow the advice in post #2 of this thread.
Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
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LETTER TO FORMER LENDERS POST BANKRUPTCY.
Here's the working letter:
MUST be sent RECORDED DELIVERY.
Do not forget to include the extract from the Information Commissioners Guidance that is shown after the main text of the letter.
To find the correct address to send it to, which MUST be the Data controller not customer services, enter the company details at the ICO site for Data ControllersYour Address
Goes Here
Data Control Officer
This Creditor
Data Controller Address
Dear Sirs
Re: Account Number xxxxxxxxxxx
After consultation with both the Information Commissioner and the Credit Reference Agencies, I am writing directly to you to request that you formally update my credit files in accordance with the Data Protection Act.
I was declared bankrupt on <Date of your bankruptcy>and subsequently discharged on <Date of Discharge>, and <name of creditor> was included within the Bankruptcy. For your convenience I have attached both my Bankruptcy Order and Discharge Notification.
Currently the information that you have recorded against my name with the Credit Reference Agencies is factually incorrect, and despite several written requests to your customer services , as yet your company has failed to correct the entries as required.
• It is required that you default the account, and that the default entry must be no later than <Date if your bankruptcy>, in accordance with the Data Protection Act.
• It is also required that you mark the account in some way as to indicate that it is settled or satisfied, in accordance with the Data Protection Act.
The Information Commissioner has indicated that I should allow you 28 calendar days from the date you receive this letter to comply, during this time you are requested either to update the Credit Reference Files correctly (of all three Credit Reference Agencies) or notify me in writing the reasons that you refuse to.
After the 28 days have elapsed the Information Commissioner has requested that I inform them if your company fails to update the records so that they may take any necessary enforcement action against your company.
Please note that if this account falls within the remit of the FOS, I will also be submitting a separate complaint to them regarding this matter if the Credit Reference Files are not correctly updated.
I have copied the relevant information provided by the Information Commissioner as an attachment to this request.
Yours faithfully
Fred Bloggs
Enc:
Bankruptcy Order
Discharge Notification
Relevant Extracts from Bankruptcy - A Guide for the Public – 2010-2015 inc issued by the ICO
Bankruptcy
When someone applies for credit, lenders look at information about their financial standing held by credit reference agencies. When someone becomes bankrupt, the bankruptcy is recorded on their credit reference file along with other information.
I am currently bankrupt. On my credit reference file there is a default for an account which was included in my bankruptcy. Is this right?
Yes. If an account has been included in your bankruptcy, the lender should have marked the account in default. The default will stay on your credit reference file for six years from the date of the default.
You can ask the credit reference agency to add a statement called a 'notice of correction' to the default entry. In your statement, you may like to say that the entry was included in your bankruptcy.
I’ve noticed that an account that was included in my bankruptcy is marked in default later than my bankruptcy. Can I do anything to change it?
Sometimes a lender will not know the exact date you were made bankrupt. This may mean that when the lender registers a default with the credit reference agencies, the date on the default is later than the date on your bankruptcy order.
If a particular debt is included in the bankruptcy, you can write to the lender to ask them to change the date of the default to the date on your bankruptcy order. Remember to send the lender a copy of your bankruptcy order or other documentation which confirms the date you were declared bankrupt.
If the lender refuses to change the date of the default then you may wish to report your concerns to the ICO. You will need to send us:- a copy of the bankruptcy order of document that confirms the date you were made bankrupt; and
- a copy of the lender’s letter which says it won’t change the date of the default.
My credit reference file shows that my bankruptcy has been discharged. But shouldn’t the credit reference agency have removed the record of my bankruptcy?
The bankruptcy entry will remain on your credit reference file for six years from the date of the bankruptcy order even if you have been discharged and have told the credit reference agencies. The lenders whose debts were included in your bankruptcy should then mark the entry on your credit reference file to show that you no longer owe money on that account (perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way).
What happens to defaulted accounts on my credit reference file?
After you have been discharged from your bankruptcy you can send proof of your discharge to all the lenders whose debts were included in your bankruptcy. Those lenders should then mark the entry on your credit reference file to show that you no longer owe money on that account (perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way).
Once the lender has changed the information on the entry, if you make any new credit applications the prospective lender will be able to see that you do not owe any more money on that account. You can ask the credit reference agency to add a statement called a 'notice of correction' to the default entry. In your statement, you can explain that the entry was included in your bankruptcy which is now discharged.
If the lender refuses to change the date of the default or mark it as ‘satisfied’ or ‘settled’ or to indicate in another way that you have fulfilled your obligations to that lender then you can write to us at: Information Commissioner, Wycliffe House, Water Lane, Wilmslow, Cheshire, SK9 5AF.
https://ico.org.uk/about-the-ico/what-we-do/register-of-data-controllers/
Or the phone the creditor's customer services and ask for the details.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
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How to raise a complaint with the Information Commissioner
This has been produced after consultation with the Information Commissioners Office (ICO) and is what they require for you to raise a complaint. If you do not provide the information they need then the complaint WILL be returned to you as they cannot action it.
This guidance should only be used AFTER you have written proof that you have contacted the Creditor / DCA concerned, and you have waited MORE than 28 days from them receiving your request for them to comply AND you have a copy of your Credit Reference Files that are NO MORE than 90 days old, that shows they have FAILED to comply with your request.
Please note that written proof that you have asked a Credit Reference Agency to investigate an inaccuracy IS NOT accepted as proof that you have contacted the Creditor / DCA. This is why this forum advocates that you MUST address your initial complaint directly to the Creditor / DCA.
Process to be used for EACH individual Creditor / DCA:
You have an incorrect entry on your Credit Reference Files .
Step 1.
(Note: If you are checking/correcting your files after bankruptcy, then the letter referenced below is the letter in post #2 of this thread. If you have already sent this letter, allowed the creditor the time below to update the files, and on checking again they have failed to do this, then just go to Step 2.)Step 2.
You must write to the Data Controller of the company concerned, (the relevant information can be found at the end of this post as to how to find the correct Data Controller).
You MUST send your letter by recorded delivery.
You must allow at least 28 days from receipt for a reply or for them to update the incorrect entry. The ICO also recommend that you allow a further 7 days to give the CRA systems to be updated.
Check your Credit Reference files again.
If the entries have been correctly updated there is no need for a complaint.
If the entries have NOT been corrected you then need to obtain an ICO Complaint form from the ICO (the links at the end of this post will tell you how to get them).
You must complete one form for EACH Creditor / DCA but this can complain about several aspects such as incorrect default date, not marked as settled, etc.Step 3.
You MUST include the following as evidence:- A copy of the relevant entry from the Credit Reference Files which MUST be no younger than 35 days after you sent to complaint letter to the Creditor / DCA.You must send this by recorded delivery.
- A copy of the ORIGINAL recorded delivery letter you have sent.
- Proof of delivery (Obtained from the Internet is acceptable).
- Copies of any Replies that you have received.
- The completed complaint form.
The ICO will acknowledge receipt but this can take several weeks, as they are extremely busy.
The ICO will write back to you telling you how they have dealt with the matter (or may ask you for more information).
If they have found in your favour they will formally request the Creditor / DCA to amend the Credit Reference Files.
If they have found in favour of the Creditor / DCA they will write to you and explain why.
If they have found in your favour, you MUST check your Credit Reference Files after waiting a minimum of 6 weeks after you have been informed, and no later than 9 months.Links
If the creditor has amended the entry then the matter is closed.
If they have failed to amend the entry then raise a further compliant to the ICO informing them that the Credit / DCA has filed to follow their request and ICO will then serve an enforcement Notice and issue a fine if necessary (Please note that this step is extremely rare).
Data Controllers Details
To the Data Controllers List:
Post #4 of this thread.
or if they are not listed you can find the details here:
https://ico.org.uk/about-the-ico/what-we-do/register-of-data-controllers/
If you are still not able to find the link please ask on the forum.
To ICO complaint forms.
In Word Format:
https://ico.org.uk/media/report-a-concern/forms/2258886/personal-information-complaints-form.doc
To the ICO site with further information on submitting the form:
https://ico.org.uk/make-a-complaint/your-personal-information-concerns/personal-information-concerns/personal-information-concerns-report/
Telephone Number for the ICO:
03031231113Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
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List of Data Controllers.
PLEASE USE THIS LIST WITH CAUTION - CONTACT DETAILS MAY HAVE CHANGED SINCE IT WAS COMPILED.
First, please search for up to date information via the link below.
https://ico.org.uk/about-the-ico/what-we-do/register-of-data-controllers/
List removed as too many entries out of date. Please use the data controller search above or send to creditors "customer service" address FAO their data controller.
(Courtesy of Less - Debt Questions forum )Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
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If you wish to discuss the "Clean up" of your Credit Reference Files and don't wish to start your own thread, then please use this thread.
Link: http://forums.moneysavingexpert.com/showthread.html?t=1044617
Previous replies on this sticky have been moved across.
Thanks.
Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
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