Payday loan removal from credit file

[Riordan44]

Hi,

Just applied for a mortgage and have been refused based on the number of payday loans I have on my credit file.

Has anyone had their loans removed from their credit file successfully? if so on what basis?

I was planning on writing to PAYDAYUK and stating that my affordability at the time vs outstanding debts and the fact I was told payday loans are good for your credit rating etc.

Thoughts and advice please?

[rochysaz]

Re: Payday loan removal from credit file

i to have been turned down due to previous pdl if you get some help i would like to know i am going to write and request that they remove all information fingers crossed ill keep you updated

[nemesis45]

Re: Payday loan removal from credit file

i to have been turned down due to previous pdl if you get some help i would like to know i am going to write and request that they remove all information fingers crossed ill keep you updated

The situation is that the loans were applied for granted and used, therefore the credit file entries are inline with the Information Commissioners Office guidance on reporting the loans to the credit reference agencies, and should remain on file for 6 years after closure.

There has been much discussion about the " PDL 's " being good for the credit status" there was in reality no reason the start of the PDL " bonanza" to doubt the claims made, it soon became plain that many mortgage providers see (often correctly ) that multiple and frequent PDL's indicated poor personal credit management.

If you have the evidence that the loan (s) that you took out were specifically stated to "improve your credit rating" then you can try making a formal complaint to the lender about the effect the credit file entries have had on you prospect of obtaining a mortgage,
the formal complaint gives the lender 56 days to investigate and respond to your complaint, if the response is unsatisfactory you can complain to the FOS.

There is no guarantee of success!

nem

[kathmorgan12]

Re: Payday loan removal from credit file

Debts on payday loan has a huge impact on your credit score. If you are on their collections dept already, might as well sort out your payment options as they are more than willing to assist you.

[Peter_Rad]

If you have used payday loans, the best advice for a mortgage application. wait until at least 12 months have passed after your last payday loan; always go through a good broker; a payday loan affordability complaint may help clean up your credit record.