A question about : Credit Reference File Clean Up Post Bankruptcy
This information was originally posted by TalbotWoods on the 'Debt Questions forum'.
Many thanks to him for the excellent work and info.
This text may be edited to keep it up to date.
In this thread:
Post #1 - Credit Reference File Clean-up post bankruptcy.
Post #2 - Letter to former lenders post bankruptcy.
Post #3 - How to raise a complaint with the Information Commissioner.
Post #4 - List of Data Controllers.
CREDIT REFERENCE FILE CLEAN UP - POST BANKRUPTCY
There seems to be a lot of questions around about what is a clean credit file and what is not, so in an attempt to clear up some of the confusion, here are some examples of what you should be looking for and what you can do if it is not like these:
Let us assume for this that the date of bankruptcy was the 1st April 2006 and discharged on 22nd November 2006
Key information that should be shown:
Default date MUST be NO LATER than 1st April 2006 (date of the Bankruptcy)
Settlement date (where shown) MUST be NO LATER than 22nd November 2006 (date of Discharge)
Experian (or CreditExpert)
Before clean up
Entry Number: C3
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2003
Default Balance: Ј3,582
Current Balance: Ј3,582
Defaulted On: 15/08/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
After Clean Up
Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Started: 22/01/2003
Default Balance: Ј3,582
Current Balance: Satisfied
Defaulted On: 01/04/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
Or
Entry Number: C9
Name and address: MR FRED R JONES
10, LOWER ROAD, HIGHER TOWN, BANKRUPTCY CITY, DE3 TED
Date of birth: 02 February 1957
Company name: BARCLAYCARD
Account type: Credit Card / Store Card
Special Instruction Indicator: Partial Settlement
Special Instruction Start Date: 02/2007
Started: 22/01/2003
Default Balance: Ј3,582
Current Balance: Satisfied
Defaulted On: 01/04/2006
File updated for period to: 12/11/2006
Status History:
(brackets indicate most recent status) [8]
Now with Experian this will mean that the account will come off the system 6 years from the default date
If the default date is LATER than your bankruptcy date, or the account is NOT marked as satisfied (including partial settlements) then is it INCORRECT and you will need to follow the advice in post #2 of this thread.
Equifax
Before Clean Up
Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ Ј 0 (Monthly)
Start Balance: Ј0
Current Balance: Ј3,582
Status: Defaulted
Credit Limit: Ј0
Date Updated: 08/05/2006
Start Date: 22/01/2003
Date Last Delinquent: 05/06
Date Satisfied:
Default Date: 08/05/2006
Default/Delinquent Balance: Ј3,582
Payment History: Lots of little numbers but the default one will be in May 2006.
After Clean Up
Name: Mr Fed R Jones
Date of Birth: 02/02/1957
Company Name / Insight Account Number: Barclaycard Centre XXXX XXXX XXXX 1809
Account Type: Credit Card
Terms: 0 @ Ј 0 (Monthly)
Start Balance: Ј0
Current Balance: Ј0
Status: Settled
Credit Limit: Ј0
Date Updated: 15/06/2007
Start Date: 22/01/2003
Date Last Delinquent: 05/06
Date Satisfied: 22/11/2006
Default Date: 01/04/2006
Default/Delinquent Balance: Ј3,582
Payment History: Lots of little numbers but the default ( a red D ) will be in March 2006 and the Settled ( a green S ) will be in November 2006.
Sometimes but not always, the entry will be followed by:
Customer Account Status
Status: PARTIAL SETTLEMENT
Explanation: Payment received as a full and final settlement although the payment would not fully clear the balance.
Now with Equifax this will mean that the account will come off the system 6 years from the default date
If the default date is LATER than your bankruptcy date, or the account is NOT marked as Settled (including partial settlements) then is it INCORRECT and you will need to follow the advice in post #2 of this thread.
CallCredit
This is the least used of the CRF,s and they sell their information to a lot of the pay for your credit file companies, such as Annual Credit Report, Check My File.com, etc.
CallCredit is notoriously incorrect to say the least, so will form a separate section that will cover them and the main companies that they also sell to; so there will be several examples.
At present I urge people correcting their files to concentrate on Equifax and Experian and I will do an update when I get certain information back from CallCredit and the companies they sell to.
How Much Does It Cost Getting Them Updated?
Honest answer is very little:
You need to obtain your reports, which can be done on line or by post, the cost of the statutory report is Ј2
The cost of a recorded letter to each of your former creditors and/or debt buyers
After 2 months you need to check them again to ensure that the former creditors / debt buyers have updated
The cost of posting a complaint to the ICO if the former creditor doesn't up date
So basically not a lot and hell of a lot cheaper that the companies that charge for this will charge you.
In my case I had 18 creditors so the total cost for me (using statutory reports) was Ј23.20, which was about 1/3 of the cost the nearest 'Well do it for you' company charged!!
How Long Will It Take Getting Them Updated?
From the time you receive your CRFs' and send your formal request for the creditors to update.
Allow 28 days (plus about 14) for the files to update.
If they have NOT been updated after 2 months then raise the complaint to the ICO
The ICO is SNOWED UNDER so you need to allow them around 60 days.
Total time about 3 months
Why Should I Bother?
This is one that is asked periodically, well…..
Once the accounts are marked as satisfied and the account is correctly closed with the creditor / debt buyer.
They can't sell it on to another debt buyer, so you won't get hassled in the future, with DCA that won't believe you have been bankrupt - There have been instances f this happening 4 - 5 years after bankruptcy where the files have not been cleaned
Your CRFs will automatically clean after 6 years from default/settlement date, so you will have a squeaky clean file from then. - There have been MANY instances where former creditors only close the account off several years after your discharge, thus knackering your CRF's for many many years. In effect creating a very bad CRF for a lot longer than 6 years and in the worst case I have heard off a full 11 years!!!!!
Your accounts will be marked as settled in the meantime, which ADDS to your credit score
You will be able to rebuild your life much quicker
Peace of Mind!!!!
OK - So Who Do I Get My Files From?
I STRONGLY urge you ONLY to get your files from the Credit Reference Agencies and NOT from the sub agencies. The sub agencies buy their files from CallCredit and the information is often even more incorrect and out of date. Plus they charge hell of a lot more!!
Instructions for obtaining your files can be found here:
https://ico.org.uk/for-the-public/credit/
How do I do this then?
Follow the advice in post #2 of this thread.
Best answers:
- LETTER TO FORMER LENDERS POST BANKRUPTCY.
Here's the working letter:
MUST be sent RECORDED DELIVERY.
Do not forget to include the extract from the Information Commissioners Guidance that is shown after the main text of the letter.
Quote: - How to raise a complaint with the Information Commissioner
This has been produced after consultation with the Information Commissioners Office (ICO) and is what they require for you to raise a complaint. If you do not provide the information they need then the complaint WILL be returned to you as they cannot action it.
This guidance should only be used AFTER you have written proof that you have contacted the Creditor / DCA concerned, and you have waited MORE than 28 days from them receiving your request for them to comply AND you have a copy of your Credit Reference Files that are NO MORE than 90 days old, that shows they have FAILED to comply with your request.
Please note that written proof that you have asked a Credit Reference Agency to investigate an inaccuracy IS NOT accepted as proof that you have contacted the Creditor / DCA. This is why this forum advocates that you MUST address your initial complaint directly to the Creditor / DCA.
Process to be used for EACH individual Creditor / DCA:
You have an incorrect entry on your Credit Reference Files .
Step 1.
(Note: If you are checking/correcting your files after bankruptcy, then the letter referenced below is the letter in post #2 of this thread. If you have already sent this letter, allowed the creditor the time below to update the files, and on checking again they have failed to do this, then just go to Step 2.)
You must write to the Data Controller of the company concerned, (the relevant information can be found at the end of this post as to how to find the correct Data Controller).
You MUST send your letter by recorded delivery.
You must allow at least 28 days from receipt for a reply or for them to update the incorrect entry. The ICO also recommend that you allow a further 7 days to give the CRA systems to be updated.
Check your Credit Reference files again.
If the entries have been correctly updated there is no need for a complaint.
If the entries have NOT been corrected you then need to obtain an ICO Complaint form from the ICO (the links at the end of this post will tell you how to get them).
Step 2.
You must complete one form for EACH Creditor / DCA but this can complain about several aspects such as incorrect default date, not marked as settled, etc.
You MUST include the following as evidence:- A copy of the relevant entry from the Credit Reference Files which MUST be no younger than 35 days after you sent to complaint letter to the Creditor / DCA.
- A copy of the ORIGINAL recorded delivery letter you have sent.
- Proof of delivery (Obtained from the Internet is acceptable).
- Copies of any Replies that you have received.
- The completed complaint form.
You must send this by recorded delivery.
The ICO will acknowledge receipt but this can take several weeks, as they are extremely busy.
The ICO will write back to you telling you how they have dealt with the matter (or may ask you for more information).
If they have found in your favour they will formally request the Creditor / DCA to amend the Credit Reference Files.
If they have found in favour of the Creditor / DCA they will write to you and explain why.
Step 3.
If they have found in your favour, you MUST check your Credit Reference Files after waiting a minimum of 6 weeks after you have been informed, and no later than 9 months.
If the creditor has amended the entry then the matter is closed.
If they have failed to amend the entry then raise a further compliant to the ICO informing them that the Credit / DCA has filed to follow their request and ICO will then serve an enforcement Notice and issue a fine if necessary (Please note that this step is extremely rare).
Links
Data Controllers Details
To the Data Controllers List:
Post #4 of this thread.
or if they are not listed you can find the details here:
https://ico.org.uk/esdwebpages/search
If you are still not able to find the link please ask on the forum.
To ICO complaint forms.
In Word Format (Only use if you have scanned copies of all documentation):
https://ico.org.uk/media/report-a-concern/forms/1042729/information-hand...
In PDF Format:
https://ico.org.uk/media/report-a-concern/forms/1523/information-handlin...
To the ICO site with further information:
https://ico.org.uk/concerns/handling/y/y/y
Telephone Number for the ICO:
01625 54 57 45 - List of Data Controllers.
PLEASE USE THIS LIST WITH CAUTION - CONTACT DETAILS MAY HAVE CHANGED SINCE IT WAS COMPILED.
First, please search for up to date information via the link below.
https://ico.org.uk/esdwebpages/search
List removed as too many entries out of date. Please use the data controller search above or send to creditors "customer service" address FAO their data controller.
(Courtesy of Less - Debt Questions forum ) - If you wish to discuss the "Clean up" of your Credit Reference Files and don't wish to start your own thread, then please use this thread.
Link: https://forums.moneysavingexpert.com/...html?t=1044617
Previous replies on this sticky have been moved across.
Thanks.
- 548 reads