Credit Record

chickenbone

I have a question, that I suspect somebody out there will know the answer to.

I tried last month to increase my mortgage to pay off my credit cards, but was turned down after they performed a credit check.

As per Martin's advice I took the free month's trial of Equifax's identity protection product, which gives you unlimited access to your credit file. I discovered to my surprise that there were three CCJs on my file; all of these had been paid in full within 30 days and I had them deleted from the record (I thought this happened automatically, but apparantly not).

I went back to my mortgage company and asked them to repeat the credit check and reconsider my application, which they did.

However they are now looking at both reports, before and after, and demanding proof that I haven't, in some fashion, deceived the credit agencies. I sent them the "Certificate of Satisfaction or Cancellation" for one of the CCJs and their response was "Aha! So we were right! You do have a CCJ against you."

Additionally, they referred to an old CCJ (more than 6 years old, and therefore not on my credit record), and demanded proof that this had been satisfied (I have no idea what it is, and they can't tell me).

So, my question: are they allowed to keep old credit reports, and use them like this?

lynnexxxo

it is really up to the bank who they decide to loan money too, i think they can use whatever info they want to make a decision.

If you will encur no early repayment charges by doing so, you might consider looking at other lenders for a new mortgage.

_Andy_

chickenbone wrote: »

I have a question, that I suspect somebody out there will know the answer to.

I tried last month to increase my mortgage to pay off my credit cards, but was turned down after they performed a credit check.

As per Martin's advice I took the free month's trial of Equifax's identity protection product, which gives you unlimited access to your credit file. I discovered to my surprise that there were three CCJs on my file; all of these had been paid in full within 30 days and I had them deleted from the record (I thought this happened automatically, but apparantly not).

I went back to my mortgage company and asked them to repeat the credit check and reconsider my application, which they did.

However they are now looking at both reports, before and after, and demanding proof that I haven't, in some fashion, deceived the credit agencies. I sent them the "Certificate of Satisfaction or Cancellation" for one of the CCJs and their response was "Aha! So we were right! You do have a CCJ against you."

Additionally, they referred to an old CCJ (more than 6 years old, and therefore not on my credit record), and demanded proof that this had been satisfied (I have no idea what it is, and they can't tell me).

So, my question: are they allowed to keep old credit reports, and use them like this?

Yes absolutely - ultimately the CCJs mean an increased risk in terms of lending so they do need to be taken into account.

Alfie_E

chickenbone wrote: »

So, my question: are they allowed to keep old credit reports, and use them like this?

No. An old credit report could contain all sorts of errors or inaccuracies. I think you should contact the Information Commissioner’s Office.

Not only does information have to be accurate, it has to be relevant and current. A CCJ doesn’t show that you can’t pay your debts. In fact, satisfying it within the prescribed one-month period shows the opposite, that you can pay your debts. A CCJ is just a court recognising that a debt exists. There is nothing wrong with disputing that you owe money, going to court, but then losing. You then accept that you owe the money, and promptly pay it. That doesn’t make you a bad debtor.

It should be noted that it’s Registry Trust Ltd, under contract of the Lord Chancellor, who maintain the register of CCJs. The credit reference agencies simply pass on that information, unaltered, to their clients, just as they do with the Electoral Roll. So, it’s not possible to deceive the credit reference agencies over CCJs, only the court or Registry Trust.

homer_j_3

Alfie,

You seem to be in the know about the ICO and what they do.

What I would say though is that the OP hasn't been particularly clear if the credit file was accurate or not.

What I mean is that, from my understanding, they were aware that they had the CCJ's but thought that as they were repaid so quickly that they would not be noted on the credit file?

If the OP actually disputed the debts that were owed and a court of law deemed that they were lawful then the OP was correct to get a CCJ and therefore this should have been recorded on their credit file. Whilst I appreciate that this does not indicate that the CCJ means that this person is a bad payer, it does indicate that they are prepared to dispute debts for reasons unbeknown to the lender and ultimately withold payment.

If the OP's lender has the criteria that CCJ's are not allowed then the lender has a right to decline the application.

Now here is the important bit. If the CCJ were incorrectly registered then the lender will want proof of this. If they were satisfied then they will want proof of this.

If it was the latter - even if they have been removed, it does not mean that those debts were never disputed. The CCJ still exisited and therefore the records were accurate. I too would question why suddenly these ccj's have disappeared - its not normal for this to happen.

If they were registered incorrectly then the OP will need to speak to experian to see what they can do to rectify this issue and will have to negotiate with an underwriter or senior underwriter if possible and give a good detailed explanation to what has gone on.



.

chickenbone

Alfie_E wrote: »

No. An old credit report could contain all sorts of errors or inaccuracies. I think you should contact the Information Commissioner’s Office.

Many thanks for this Alfie. There are some useful leaflets on the ICO website.

I shall be writing to my lender's Data Controller and asking that the Incorrect Personal Data (ie the old credit report) and any Personal Data containing Expressions of Opinion based upon the incorrect data be destroyed and rectified (as is the right of a data subject under the Data Protection Act 1998).

At least, that's my reading of it. I'll be very interested to see how it goes.

Dan_Collins_2

Alfie_E wrote: »

No. An old credit report could contain all sorts of errors or inaccuracies. I think you should contact the Information Commissioner’s Office.

Not only does information have to be accurate, it has to be relevant and current. A CCJ doesn’t show that you can’t pay your debts. In fact, satisfying it within the prescribed one-month period shows the opposite, that you can pay your debts. A CCJ is just a court recognising that a debt exists. There is nothing wrong with disputing that you owe money, going to court, but then losing. You then accept that you owe the money, and promptly pay it. That doesn’t make you a bad debtor.

It should be noted that it’s Registry Trust Ltd, under contract of the Lord Chancellor, who maintain the register of CCJs. The credit reference agencies simply pass on that information, unaltered, to their clients, just as they do with the Electoral Roll. So, it’s not possible to deceive the credit reference agencies over CCJs, only the court or Registry Trust.

Alfie how can you say that a ccj does not mean you cant pay your debts?? It says you either cant, could not at the time or did not want to! why would you be in court if you can pay the debt?

Also the OP was not disputing the correctness! Most mortgage applications ask have you ever had a CCJ, default etc. Not have you had a ccj, default in the last 6 years. They then expect to be told the truth. If the op applied for a mortgage and that question was asked they have to declare it.

In this case the credit reference file had not been up-dated, however this is not the lenders fault and they can and will use that info to assess the case.

Sorry if I am ranting but I cant see your point and sound like a pen pushing civil servant!

Dan_Collins_2

chickenbone wrote: »

Many thanks for this Alfie. There are some useful leaflets on the ICO website.

I shall be writing to my lender's Data Controller and asking that the Incorrect Personal Data (ie the old credit report) and any Personal Data containing Expressions of Opinion based upon the incorrect data be destroyed and rectified (as is the right of a data subject under the Data Protection Act 1998).

At least, that's my reading of it. I'll be very interested to see how it goes.

Chickenbone a CCJ will fall off your credit file 6 years from satisfaction. The CCJ cant be deleted but the date it was satisfied needs to be correct and if its long ago enough it will fall off the end. Also as in my last post to Alfie, check the mortgage application and its questions about your credit history, ypu may find you have to tell them anyhow.

Good luck with and let us know how you got on!

chickenbone

Dan_Collins wrote: »

Chickenbone a CCJ will fall off your credit file 6 years from satisfaction. The CCJ cant be deleted but the date it was satisfied needs to be correct and if its long ago enough it will fall off the end.

It's six years from the judgement date, and it can be deleted if paid within 30 days:

Judgments and decrees are reported by credit reference agencies and by Registry Trust Ltd for a period of six years from their date of registration. Judgments and decrees paid within a calendar month can be removed from the Register. Where the judgment or decree was paid outside one calendar month, the judgment will be marked on the register as satisfied but will be reported for the six years.(source: The Registry Trust)

Alfie_E

homer_j wrote: »

Whilst I appreciate that this does not indicate that the CCJ means that this person is a bad payer, it does indicate that they are prepared to dispute debts for reasons unbeknown to the lender and ultimately withold payment.

Dan_Collins wrote: »

Alfie how can you say that a ccj does not mean you cant pay your debts??

You’re probably thinking of only one reason why people go to County Court. If someone isn’t paying their consumer-credit debts and you want to take legal enforcement, getting a CCJ is on the road to doing that. If you look at the HMCS’s Making a claim page, you’ll see there are other reasons people go to County Court.

• bad workmanship;
• damage to their property;
• road traffic accidents;
• personal injury;
• goods not supplied; and
• faulty goods

So, it could be anything from a car accident to a dodgy builder to shoddy goods. People often come to this forum about problems with an eBay or shop purchase. When people have gone through all the other possibilities, the last possibility given is that they can always go to the Small Claims Court. Even in the case of a consumer debt, there could still be a valid argument as to the amount outstanding.

It would be a huge disincentive to defending yourself in County Court if, should you lose, not only will you have to pay the money, but your credit record would be harmed. If you do lose, you’re expected to liquidate all the assets that you can. If you fail to pay all the judgement, the judgement has effectively made you insolvent, and that does need to be recorded.