DCA Offered to remove default. Urgent advice needed

darkglobe87 · 7 June 2018 at 10:02AM

Hi all.

I've been in conversation with Opos Ltd regarding a £1000+ default balance for a £100 loan I took when young and silly. I've avoided it for years but now older and somewhat wiser I'm trying to apply for a mortgage and the default was holding me back.

Opos have offered to completely remove the default once payment is made, and I have this in writing to that effect to take to my potential mortgage lender.

My question is: once paid and Opos have sent their change to the CRA (they report to call credit) is there a way to get the file updated sooner? I have a house under offer and absolutely must get a mortgage secured as soon as possible. I'm aware of the bad credit mortgage companies but these are not within budget and we've settled with a building society who do much more manual checks than the big lenders.

Can anyone help? Can I contact callctrlredit and ask it to be updated sooner?

Thanks!

glentoran99 · 7 June 2018 at 10:19AM

Not sure how getting the default removed will satisfy your lender, they will be fully aware of the default and getting it removed may not affect their decision making, however 1 default shouldn't preclude you from high street rates

T-G-C · 7 June 2018 at 5:31PM

darkglobe87 wrote: »

Hi all.

I've been in conversation with Opos Ltd regarding a £1000+ default balance for a £100 loan I took when young and silly. I've avoided it for years but now older and somewhat wiser I'm trying to apply for a mortgage and the default was holding me back.

Opos have offered to completely remove the default once payment is made, and I have this in writing to that effect to take to my potential mortgage lender.

My question is: once paid and Opos have sent their change to the CRA (they report to call credit) is there a way to get the file updated sooner? I have a house under offer and absolutely must get a mortgage secured as soon as possible. I'm aware of the bad credit mortgage companies but these are not within budget and we've settled with a building society who do much more manual checks than the big lenders.

Can anyone help? Can I contact callctrlredit and ask it to be updated sooner?

Thanks!

You are unable to rush CallCredit to update their records. Once the new monthly data has been uploaded to them by the lender, it will be processed and visible on your file within a few days.

If the default is accurate, the lender should not be using its removal as an incentive to clear the debt. In fact, in terms of industry practice, removal should only be performed where the default was reported in error. Even if you have it in writing, be warned that the lender could still change their mind and since it is an accurate reflection of your account history, the CRAs would not accept any dispute for it.

As for your lender, if they have already performed a credit check on you, normally they will use the data received at that time, as multiple hard searches are not common practice, since the information they need is delivered to them first time round.

You could explain the situation to them, however, if you admit it was removed as an incentive to clear the debt (rather than it being a clerical error) you are going to look worse in my opinion, as it gives the impression that you require negotiation or incentives to clear your debts, as opposed to making your repayments as agreed. However, this is my opinion and will depend on the creditor solely.

National_Debtline · 7 June 2018 at 6:03PM

Hi Darkglobe87,

A creditor should only remove incorrect information, so if the default is correct it shouldn't be removed. However, if they have agreed to do this, in writing, then you could raise a complaint with them if they fail to update the credit file - however - this all takes time and complaints are subjective (as stated above).

If your mortgage lender has already agreed a mortgage in principle, with the default showing then having it removed shouldn't make any difference. However, the other issue you may have is that although this creditor updates Call Credit, the mortgage lender they may check Experian or Equifax. And the information held on the credit files can differ slightly.

Most credit files are updated within the month and if you need it doing sooner you would need to contact Call Credit to see if this is an option, but please be aware that there doesn't appear to be anything stating this on their website.

Laura
@natdebtline

sourcrates · 7 June 2018 at 11:56PM

The answer is No in other words.

The system updates monthly, you cannot alter that.

fermi · 8 June 2018 at 8:13AM

The "CRAS only update files once per month" is a bit of a misunderstanding, based on the fact that most lenders send scheduled monthly updates so it will require that to be done and processed at the CRA end before changes in the intervening period to show.

However, even for a normal manual update being sent, changes won't necessarily show immediately depending on how quickly the CRA processes with respect to QA checks etc.

There is (or was) a rapid update mechanism operated by the CRAs explained by the ICO thusly...

CRA Rapid updates and P4

It is our understanding that all three main CRAs offer a rapid update facility.

The facility is, as described on the Experian website, "..a manual overnight update intended only for correcting significant errors that might, for example, prevent someone getting a loan. It is like a triage system in A&E to make sure the most serious cases are dealt with quickly.”

We do not interpret the ability to provide a rapid update in certain circumstances as a general obligation (under the “where necessary, kept up to date” provision) to provide one upon request, as long as the data controller has a reasonable updating procedure already in place, which we understand the main CRAs have at present.

Internal line only - However, there may be individual examples where a rapid update is warranted and any refusal to do so when asked may be a breach of the fourth principle.

where I would very much think the use of such would be inappropriate in this case.

DCA Offered to remove default. Urgent advice needed

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