Help! Bad credit score for something out of my hands?

sailorei · 21 January 2019 at 6:03PM

Hi,

I have recently voluntarily terminated my PCP car contract due to a disagreement with the way the contract was originally represented to me, after terminating this contract, I have since lodged a complaint with the financial ombudsman who is busy looking through the case. As my case is still 'in limbo' the end payment which is needed to square off my voluntary termination is still hanging over my head - and I can't do anything about it until I get an answer back from the ombudsman about whether or not I have to pay it.

Now - on my credit file this balloon payment from my voluntary termination shows up as 6+ months missed payments, which as you may have guessed, has made my credit score drop from 999 to 533 on Experian, from excellent to poor! I'm really struggling with anxiety over this, I am currently saving for a house and looking to buy at the end of the year, but how will I ever get a mortgage with this hanging over my head?

What can I do? Will my credit score suffer for a while after this? Can anyone help?

Thank you!

[Deleted User] · 21 January 2019 at 6:16PM

It'll be difficult to be accepted for a mortgage until you've resolved this.

If it's resolved in your favour, then the negative markers should be removed. That won't necessarily change your credit score but that doesn't matter, because it's not a factor in lending.

If it's not resolved in your favour, you'll need to settle it and use an adverse credit broker.

sailorei · 21 January 2019 at 7:17PM

I can settle the overdue money now - however, it's being disputed! I wasn't told when I voluntarily terminated my contract that it would show up as missed payments, and I also wasn't told that they couldn't be wiped from my credit rating, is there any way to get in touch with the rating agency's to let them know what my situation is at all?

I'll pay off the money tomorrow, but is there anything I can do to remediate the damage done?

[Deleted User] · 21 January 2019 at 7:22PM

Time and good behaviour are the things that will fix a poor credit history.

You can put a notice of correction on your files but I wouldn't advise it. They tend to do more harm than good.

If you VT'd within the terms of the agreement, there wouldn't be any missed payments. What exactly happened?

sailorei · 21 January 2019 at 7:56PM

There are no 'missed payments', I made every payment on time, however, I terminated my agreement because I came to the realisation the contract had been verbally misrepresented to me by the salesman at the garage. I liaised with the finance provider first to let them know that I was going to VT, to which they agreed, and opened and closed a dispute internally straight away to allow me to take the issue to the financial ombudsman.

What was not explained to me before I VT'd my contract was that the outstanding finance payment which is required to square off the contract shows up as 6 months of missed payments on my credit file. This is the payment which I am contesting with the financial ombudsman at this moment. However, because I am contesting this final payment, I cannot actually pay it, so now I'm stuck between a rock and a hard place, my credit file is taking a terrible hit whilst I'm waiting for my case to get through a huge queue.

Help! Bad credit score for something out of my hands?

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