Information to help you deal with your CRF's

Moderators: TalbotWoods, JaneClack

By chunts
#423843 Hi Folks,

I'm a newbie here :)

When I was a student my credit wasn't great, had various loans which I really struggled with but have been working hard to improve my credit record over the years.

A few days ago I applied for a loan from Sainsburys Bank, having had one which I cleared off around 18 months ago (no payments missed) so thought it wouldnt be a problem getting another in order to upgrade my car. I did an online joint application with my Wife (who has a perfect credit record) and it came up "approved in principal" and that the credit agreement would be sent in the post. The following day I received an email saying that I had to call Sainsburys in 72 working hours to finalise my application? I did this tonight and to my dismay was told my application declined! I checked my credit file online and the results were as follows:

Credit Scores & Ratings
Using data seen by Lenders
Callcredit590 Equifax563

Using data seen by Landlords/Employers
Callcredit819 Equifax819 Experian757

Other Scores
Postcode909 Application796

I have never missed a mortgage payment or any loans, etc with the exception of 1 black mark on my account. It was an overdraft with a default date of 2010 (even though this must be around 8 years ago at least when I had this!!). It was a result of interest being added and me not being able to afford to pay the overdraft and interest at the same time so a £500 overdraft ended up being £3000!! It is with a debt agency now, has been for few years and I will be honest in saying I have ignored it until now. It says it will be reported on until 2016.

Is this 1 default really causing me all these problems considering everything else has been paid on time (and I even pay more each month to my mortgage than the minimum payment)?

Any advice would be appreciated. Thanks
User avatar
By TalbotWoods
#423853 Hi and welcome

You will need to ask Sainsbury why they rejected, OK the wont tell you but they will tell you which CRA they used to determine this and that is the CRF you should use only.

I noted that you included a "Using data seen by Landlords/Employers" entry and these are not available on the domestic CRFs, they are only available if you have purchased a commercial report. If you are using a 'combined' CRA checking agency, these are often incorrect and out of date.

If you are sure that the default refers to an account and the incidence occurred in 2008, then that is an incorrect default, as these are issued a few (normally no more than 3) after you stop paying in total, maybe up to 8 months if paying reduced payments.

As you have said it is with a DCA, and some appear to go out of there way to deliberately damage CRF to cause maximum to you, so it is VERY possible that a default was originally issued, then ignored by the DCA, who reissued it illegally to cause damage to you

The fact that Sainsburys accepted in principle indicates that you had passed your computer acceptance, so the default (if it exists) woudl not have been the reason. So please be aware that Sainsburys then (like other lenders) then verify the other information give to them, and that is where sometimes things can go wrong.

Additionally they are required to carry out an affordable check, and beleive me that figure goes up and down faster than a yo-yo!!

So please check your CRF with the CRA that Sainsburys have told you they use, and see what is there, and I suspect that either a DCA has gone out to trash your CRF or (and I suspect this may be the case) there is something else adrift.

By chunts
#423863 Thanks for the reply Tim :)

Yes, I got my credit report from 'check my'. Apart from my Mortgage we have absolutely no other debts between us - my Wife had a credit card which she hardly used and paid off at the beginning of the year and we have a very good joint income so I am puzzled! My wife even got a £6000 car loan 3 years which she paid off 2 months ago!

The overdraft debt was bought by Lowell and I have had no contact with them (apart from 2 or 3 letters which my friend who worked for a debt collector years ago told me to not acknowledge).

According to my records, the account was opened in 1995, last updated September 2013, payments started = not recorded, default date April 2010 and reported until April 2016. I am unsure if I could write to them with the 5 year Scottish statute barred argument?

Sainsburys said they will write to me to advise of the CRA they used so I will purchase a report directly from them.

I am just unsure what to do now. With such a poor credit score does this mean we have next to no chance of getting a car loan with a reasonable APR? Sainsbury's put me through to another company they use to do a "soft credit check" which I was approved for but the APR was ridiculous.

Thanks again for the advice.
User avatar
By TalbotWoods
#423873 Ah Checkmyfile is a blasted nightmare. If it is any consolation according to mine I live in various different addresses, and have an a bank account with a company I would never use. (I checked I dont!!)

I would suggest using the CRA that Sainsbury uses, and I think they report to both Equifax and Experian. You can get the statutory ones form them both for £2 each.

Lowells have a history of placing inappropriate entries on CRF, as to if they can go for this is at LOT will depend on when you LAST paid anything towards the debt, and when you LAST acknowledged in writing the debt in writing.

Ignore the scores from CMF, each creditor uses their own score system,and it is not unusual for one creditor turn you down and another down the road accept you with open arms.

With only one default, that will not give you a bad credit file, so once again I suspect something else is adrift here rather than the supposed default.

And this default is something you do need to check out, as I do suspect it is VERY possible that a default was originally issued by the Original Creditor, then ignored by Lowells, who reissued it illegally. Now the reason I say it need to be checked out is that Lowells are renown to get VERY heavy handed with people who own property

By chunts
#423893 Thanks Tim. I haven't paid anything towards it and have never acknowledged it. I was going to try and use the template on your site to try for Statute barred and take it from there instead of ignoring any letters they may send.

If I do start paying then feel this may have more of a detrimental effect on my rating as would I be right in saying it would then remain on my file for a further 6 years from the date I pay anything/acknowledge it?

I will also get the reports from the 2 CRA's.

Thanks again.
User avatar
By TalbotWoods
#424333 No as the account is defaulted, then it will remain on the file for 6 years form the date of the ORIGINAL default. If the DCA has removed the orignal and place then they are in breach of the Data Protection Laws