Forums / Getting Technical / Finance / Entry in Credit File

Viewing 16 posts - 1 through 16 (of 16 total)
  • Profile photo of SebastianSebastian
    Member
    @sebastian
    Join Date: 2003
    Post Count: 55

    Hi All,

    I’m just helping a friend get a personal loan atm. She has a default on her credit file that is not directly her fault, and this is stopping her from getting the personal loan.

    Situation is that friend’s mother went through her mail and used her store card while friend was away working on cruise ships. The account fell behind and was not paid, which resulted in a default on her file. Since then it has been paid in full.

    Now I was thinking if she gets her mum to fill out a stat dec outlining the sitation to the company that recorded the default entry into her file, as well as the company she is trying to get the personal loan through this may sway things.

    She was out of the country also, so passport records will help to verify this fact.

    So by providing a declaration from her mum and supporting documentation I am hoping for the following:

    1) The company that recodred the default can have it removed.
    2) The bank who she is trying to get the personal loan through will overlook the default in the file (if it has not been removed)

    Is there anything else people would recommend? Do you think the above will help?

    Cheers

    Sebastian

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    It is unlikely that the company that listed the default will remove it. But the bank you are approaching for a loan may consider the circumstances. What they look for is
    -the amount
    -how soon it was paid
    -the reason
    -how long since it appeared.

    it is worht a try anyway.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of SebastianSebastian
    Member
    @sebastian
    Join Date: 2003
    Post Count: 55

    Thanks Terry,

    The entry is due to be deleted in June 2006, so it happened 3 years ago.
    and the amount is for ~$2000. Not too sure how soon it was repayed but the person was out of the country for 5 months and was not aware these debts where being made at the time.

    I feel the case is strong, so we’ll put it to them and see what happens.

    Cheers

    Sebastian

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    That’s getting close to the mother being up for fraud…… (which she is guilty of)

    Cheers
    Mel

    Profile photo of forextraderforextrader
    Member
    @forextrader
    Join Date: 2003
    Post Count: 23

    Hi, in the UK adverse credit history can be removed from your credit file in certain circumstances e.g. the debt is paid or an arrangement to pay has been agreed. You probably have similar arrangements under your Data Protection legislation.

    There are known knowns which we know, there are unknown knowns which we dont know we know and there are known unknowns which we know we dont know but wish we had known but there again I dont know.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    BTW, there are solicitors that can help with the removal of defaults etc from the credit record. If the defaulter has not followed the letter of the law when making the listing, they can be sued. Often the threat of legal action is enough to get them to remove the entry.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737

    So basically, I could take mum’s credit card [curtain] go on a bit of a consumer spending spree, mum doesn’t dob me in [sealed] why would she? she’s my mum- it’d be mean if she dobbed me in [baby][cry][hypocrite] and then I can wait for 5 years and apply for a homeloan, and the marks against my name are gone? Actually, even if she did dob me in, and I was done for criminal fraud, do the marks still get removed after 5 years? [dead2]

    kay henry

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429

    Actually Kay, there would be no marks against your name if you didn’t pay the bills – they would be against your Mum, so you could go get a homeloan straight away – or a personal loan, which is probably more likely if you are spending Mum’s credit card money[evil5]

    Cheers
    Mel

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    To all those people getting a divorce, watch out for spouses with joint cards. We have seen more than a few clients with blisters on their CRAAs, that they did not know about, due to their ex spouses going out and spending up on the credit cards.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of miraclemiracle
    Member
    @miracle
    Join Date: 2004
    Post Count: 19

    Another point;

    Depending on the lender, even though the marks on credit files come off after 5 yrs, 7yrs bankruptcy, they (lender)can still see the marks on your file, even though you can’t (if accessed publicly etc.).

    Reason being; they pay big dollars for access to files that date back up to 15 yrs.

    So, don’t go saying you didn’t have a default when you did 9 yrs ago.

    PLEASE NOTE:

    This access to credit reports are mainly done with big lenders and on home loans. Mainly LMI has this access.
    So, personal loans etc I stick to the norm

    In regards to the topic.
    Send the Stat Dec to the lender who made the default, if no success, go to the banking ombudsman. You’ll see some action then.

    Profile photo of AceyduceyAceyducey
    Participant
    @aceyducey
    Join Date: 2003
    Post Count: 651

    Sebastian,

    I would say that this friend should have some VERY strong words with her mother.

    From the way you have written the post, it appears the mother was stealing from her daughter & has now potentially hurt her daughter’s financial future in the short term.

    The mother did commit both theft and fraud. She stole the card & then used it fraudulently.

    If the police were involved, the credit mark could quickly be moved to the appropriate person’s file – however I’m sure she’d feel terrible about involving them in this matter.

    A stat dec & the passport reference may clear it up, but it will certainly highlight the fraud. Be cautious that your friend is not considered an accessory to the matter.

    Cheers,

    Aceyducey


    In theory, there is no difference between theory and practice. But, in practice, there is.

    – Jan L.A. van de Snepscheut

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 990

    Ask the company who keep the default files for instructions on how to have an error in their files rectified.
    cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

    Profile photo of jancrowsjancrows
    Member
    @jancrows
    Join Date: 2003
    Post Count: 122

    Terry W
    Thankyou for your tip reference “property Matters” pertaining to divorce. Credit card liability. Of my 55 page “book” delivered by the Magistrate [baaa] I have just checked there is not specific mention of a credit card that I was a 2nd cardholder to.

    There are general/standard indemnity provisions contained in the orders, but perhaps I should make sure my “name” is actually removed by the bank before I sign over other property matters to him. Good lesson for all…

    Yet I think it is down right dishonorable to go on a spending spree. But the process of seperation and divorce is soooooooooo stressful that I can understand how it leads folk to do such in “spite”. [agro3]

    However, I am confident that with the right evidence your clients partners liabilty for the spree could be proven. The Court could adjust for this in the property distribution and it could also form part of the removal process everyone has discussed thus far.

    I guess advice should be to dissassociate any debts or potential risk thereof at time of seperation ASAP. I also concede this can be quite complex and very difficult to achieve.
    Particulalry if there is no communication, relocation or some one does a runner etc.[daisy][devilish]

    Regards

    “Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson

    Profile photo of GrregGrreg
    Member
    @grreg
    Join Date: 2003
    Post Count: 121

    Hi Miracle!

    Your comments are surprising and disturbing – but unfortunately I find myself believing them… Can anybody else shed light on these revelations…

    I suppose that if you applied under the privacy act to see all the information held on you then you may get different results to what you might find on the ‘Public Access’ report issued by Baycorp.

    Another question – I recently applied for a loan and I have two enquires on my credit file just days apart, for the same loan application. To me it looks like someone in the office might have been a bit sloppy and lost the paperwork – My concern is that things like this make my credit file look like a dogs breakfast…

    Anyone smart got any suggestions on this – is there a chance I can one of them scrubbed?

    Cheers,
    Greg

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Greg

    It is not too bad, but I agree it doesn’t look too good either. I suggest you contact the lender (complaints section-customer liaison??) and ask it be removed.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of GrregGrreg
    Member
    @grreg
    Join Date: 2003
    Post Count: 121

    Hi Terry!

    I will give that a try and let you know if I have any luck… What I did not mention in the previous post was that I applied for three loans to be settled on the same day – for three properties… So instead of one inquiry for each property I have two for each PLUS another one from the LMI for each property so that is a total of 9 enquires for just 3 loans… I am less than pleased about this and like I said – It makes my credit file look like a dogs breakfast. [angry2]

    To be honest I was amazed to find that the one lender made three inquiries on my credit file – in one day… I understand that each of them is for a different loan but as they were all processed via the same application surely one inquiry would have proven my position!

    In future I will give them a copy of public access credit file and tell them to conditionally approve my loan application based on the information provided. Then and only then I will give them permisson to make a credit enquiry – to ensure that the information I provided was true and correct… What do all the mortgage brokers out there think of this?

    In a logical world this should be routine anyway… But I guess the lenders just choose the path of least resistance with little regard to how it may impact upon their much treasured customer!

    Any input from people in the know is much appreciated…

    Cheers,
    Greg

Viewing 16 posts - 1 through 16 (of 16 total)

You must be logged in to reply to this topic.