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elbric80
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new credit file default affecting mortgage application

Hi all - I know there have been similar posts before but I'm in an urgent situation. I'm going through a mortgage application and it has been denied because of a default on my credit report from Virgin Media that I didn't know about. I'm applying for a shared ownership mortgage that requires you have no defaults on your credit report so I'm really stuck unless I can get it removed. It comes from when I split with my partner last year and moved out of our flat. They were supposed to have cancelled VM and I cancelled my direct debit, but the account actually stayed active for a couple of months before defaulting. I've emailed VM's credit amendments team but no response yet - I'm hoping I can get it removed, even as a goodwill gesture since I was a good customer for many years and never missed a payment. My mortgage and future plans really rely on this - is there any way of having it looked at urgently?

 

Thanks for any help you can give me 🙂

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spgray
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Re: new credit file default affecting mortgage application

sounds like a valid debt to be honest, if you pay the debt it then it will be marked as settled, but will not be removed.

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Sololobo
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Re: new credit file default affecting mortgage application

As the account holder it was your responsibility to correctly cancel/close your account, nobody else can do that on your behalf.

There are three credit reference agencies (CRAs) in Britain – Experian, Equifax and TransUnion. They all apply the same rules about reporting defaults.

How long a debt stays on your record depends on whether the record shows a default date or not. The two rules are:

  1. a debt with no default date stays on your record for six years from the date when it is settled. This applies whether it was settled in full or partially;
  2. a debt with a default date stays for six years from that date. You may have paid it in full,  made a full and final settlement, not paid anything to it, or still be making payments… none of these matter, the debt is still going to drop off after six years.

So the default date is an important piece of information for you to know. 

Once a default is recorded on your credit profile you can’t have it removed before six years are up, unless it’s an error, but you can add a Notice of Correction to your credit file to explain why the problem happened.

Any Notice of Correction you add will be supplied to any lender who is looking at your credit record. This doesn’t mean they will change their mind about whether to provide you with credit because of it. It can’t do any harm, but it may not do much good.

It will also slow down applications for credit, as it has to be manually checked, rather than a computer making the decision.

You will have to provide each of the CRA's with your correction notice.

The end result is you did default and the default record will remain for six years.




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LittleMick73
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Re: new credit file default affecting mortgage application

I hope all these rash people who regularly come on here threatening to cancel direct debits are reading this & it sinks in what the ramifications are a result of this stupid action entail.
spgray
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Re: new credit file default affecting mortgage application

although it does seem a lot of mortgage companies are telling people with a £40 debt on their credit record to take a run. i'd understand if it was a track record of bad debts, but 1 low value default seems harsh - but that's what's happening these days.

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jbrennand
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Re: new credit file default affecting mortgage application


@LittleMick73 wrote:
I hope all these rash people who regularly come on here threatening to cancel direct debits are reading this & it sinks in what the ramifications are a result of this stupid action entail.

I have copied this thread link to my "notepad" for using for that very reason in the future   😎


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I do not work for VM. My services: HD TV on VIP (+ Sky Sports & Movies & BT sport), x3 V6 boxes (1 wired 2 WiFi,) SH2 in modem mode with Airport Extreme Router +2 Airport Express's. On VIVID200, Talk Anytime Phone, x2 Mobile SIM only iPhones.
Roger_Gooner
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Re: new credit file default affecting mortgage application

Legally before a default can be issued the lender has to send a default warning letter. If you didn't get this letter you can ask for the default to be removed but it isn't a quick process. Here's more information on this.

http://www.learnmoney.co.uk/credit-file/remove_default_notice.html 

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