Default on credit file lowell

[Andydoders]

Hi All

New to this . I have been checking my credit file for a few Months Now and have been working to get my Rating up as in the past my money management was not the best which i fully acknowledge and accept . I have one credit card now that is paid every month apart from that i have no other debt other than your normal Mobile phone and household bills which are all in my wife's name . I cleared a debt from lowell over 12 Months ago . My credit rating was 34 points off Good up until a few weeks back and its gone down in score due to experian changing the way that they score people . Nothing has changed in my report to cause such a drop . I have a default that has been settled from Lowell on there and that is the only way i think that i can get my score up is by getting this removed . I have emailed them with no reply and wondered if anyone had any advice . We are due to be given my parents house that we are already living in and that is Mortgage Free but we need to Loan against the House to Buy my parents a Flat the House is worth £240-£260K and are looking for a loan against the House for the half that amount and im scared that due to my credit rating i will not be able to get the Loan to Value Mortgage that we need . My wife's credit rating is Excellent

Sorry to drag on

Thank you in advance for any advice

[nemesis45]

Re: Default on credit file lowell

Hi All

New to this . I have been checking my credit file for a few Months Now and have been working to get my Rating up as in the past my money management was not the best which i fully acknowledge and accept . I have one credit card now that is paid every month apart from that i have no other debt other than your normal Mobile phone and household bills which are all in my wife's name . I cleared a debt from lowell over 12 Months ago . My credit rating was 34 points off Good up until a few weeks back and its gone down in score due to experian changing the way that they score people . Nothing has changed in my report to cause such a drop . I have a default that has been settled from Lowell on there and that is the only way i think that i can get my score up is by getting this removed . I have emailed them with no reply and wondered if anyone had any advice . We are due to be given my parents house that we are already living in and that is Mortgage Free but we need to Loan against the House to Buy my parents a Flat the House is worth £240-£260K and are looking for a loan against the House for the half that amount and im scared that due to my credit rating i will not be able to get the Loan to Value Mortgage that we need . My wife's credit rating is Excellent

Sorry to drag on

Thank you in advance for any advice

Hi welcome to LB.

Defaults and the way they are handled and displayed is regulated by the Information Commissioner Office
the rules are quite strict.

Defaulted accounts are reported to credit reference agencies by the Original Creditors Not debt purchasers
such as Lowell which can only update the original entry with its data, it cannot change or remove a default
date which remains on file paid or not for 6 years from the default date.

If a debt is paid off in full the credit file is amended to show that the debt has been " Satisfied" or a part payment accepted in " full & final"
settlement is made the files are marked " Partially Satisfied" the account remains on file for the balance of the 6 year " life" of the default.

Defaulted accounts are removed on the 6th anniversary of the default date paid or not.

Paying of a defaulted debt does not result in removal of credit file entries appearing on all 3 main agencies and their offshoots, back in 2014 the ICO changed its view on removal of defaults for reasons other than the expiration of the 6 year period.

One used to be able to " negotiate" removal of defaults in cases where the debt has been paid in full, now unless
a default was in someway defective when applied or unfairly applied it is extremely hard to get one removed.
The " view" of the ICO is that credit files must show an up to date and accurate picture of the conduct of an account.

Lowell is well known for ignoring any requests for help in this situation and will if the do anything at all it will be
to direct you to the original creditor which placed the default
A debtor needing to get a mortgage is often not seen as a good reason for removing a default.
Nor can a credit reference change or remove any default entries with out authorisation from the creditor
that placed the original default.
You are correct in thinking the default will affect a mortgage application,
usually an immediate rejection + the extremely tight invasive mortgage
application " questionnaires " used now make it a very difficult process.

When does the entry on your files get removed?
Who was the original creditor?

The only possible ( no guarantee of success) way to get the default removed
is an appeal to the Original Creditor for " a gesture of goodwill" given that you
need to get a mortgage.
Write to the Data Controller of the creditor identifying yourself and the original debt
it will be a case of begging more or less, and there is no obligation for them to cooperate.
Personally I would be talking to IFA or mortgage provider now put the facts before them
for an opinion.

nem

[Andydoders]

Re: Default on credit file lowell

Hi Nem

Thanks for the advice . The original Debt was with Orange Mobile - I am currently with EE who are the same company now . On my credit report its states lowell portfolio i ltd . I still do not understand why my credit score has gone down 179 points with no change to my circumstances - The default gets removed September 2016

[nemesis45]

Re: Default on credit file lowell

Hi Nem

Thanks for the advice . The original Debt was with Orange Mobile - I am currently with EE who are the same company now . On my credit report its states lowell portfolio i ltd . I still do not understand why my credit score has gone down 179 points with no change to my circumstances - The default gets removed September 2016

Any new credit applications?
Lowell Portfolio 1 is a debt purchasing " entity" of the Lowell Group.
I think you will need to check Equifax and Call Credit to see what they
hold on your accounts.
You can query the " score " which is intended only as a day to day indication
of how a credit application may be viewed phone the agency but be prepared
for a wait.
You mentioned that most of the accounts on your credit file is utility bills etc.
are all in your wife's name?

My thinking is you have fallen into an common but unrecognised trap, you have
too little credit activity for the agency to build up a picture of how you manage
your finances, this is as bad for the mythical credit " score " as too much credit.

nem

[Andydoders]

Re: Default on credit file lowell

Hi nem

Yes All the Utility bills are in my wife's name i transfer Money from my Account every week to her account to pay the bills as in all fairness she is very organised and has never missed a payment for anything . We were thinking to get some of the bills in my name from my account . i have not applied for credit as i don't want that to go against me and be seen as being desperate for credit


Regards

Andy

[nemesis45]

Re: Default on credit file lowell

Hi nem

Yes All the Utility bills are in my wife's name i transfer Money from my Account every week to her account to pay the bills as in all fairness she is very organised and has never missed a payment for anything . We were thinking to get some of the bills in my name from my account . i have not applied for credit as i don't want that to go against me and be seen as being desperate for credit


Regards

Andy

It is a vicious circle Andy too little credit nothing to base a " score " on too much
credit and/or applications lower score results, takes a lot of juggling over quite
a few years.

Perhaps a low limit credit card ( not a credit builder with a high interest rate) would help
to establish a better picture and or a small unsecured loan for an item of household
furniture say over 2 -3 years to build a picture of credit worthiness may help you.

nem