Beware of settlements!

[allotmentlady]

We recently settled on a loan that we had, well it was actually last October. Last week OH went to Currys to buy a new TV but credit was denied, he was livid as we always have had good credit. Anyway we went and applied for a credit experian report and was shocked to discover that a) the loan company had not informed them that the loan had been paid off and b) that apparently my OH has missed 4 payments!
We contacted the loan company, which is a popular bank and asked them what the hell was going on, they said that my OH owed 3p, yes 3p. We explained that we had not received any letters or emails. We then spoke with a manager who explained that we didnt owe anything and that the account would be cleared and sorted out.
Today, we receive a letter from them saying that we owe 3p, we contact them again, they say that it is an error and that the job they requested to be done, ie have our loan cleared hasnt been done but should be done by the end of today! I have demanded compensation and they say they will discuss it with us later.

So if you get refused credit, it might not be becuase you have bad credit it willk be cos the bloomin loan company hasnt informed them you have paid!!!!!!

Rant Over!

[Two_Sheds]

I have a bad credit rating ... simply because I've never had a debt in my life.

[TEB]

We recently settled on a loan that we had, well it was actually last October. Last week OH went to Currys to buy a new TV but credit was denied, he was livid as we always have had good credit. Anyway we went and applied for a credit experian report and was shocked to discover that a) the loan company had not informed them that the loan had been paid off and b) that apparently my OH has missed 4 payments!
We contacted the loan company, which is a popular bank and asked them what the hell was going on, they said that my OH owed 3p, yes 3p. We explained that we had not received any letters or emails. We then spoke with a manager who explained that we didnt owe anything and that the account would be cleared and sorted out.
Today, we receive a letter from them saying that we owe 3p, we contact them again, they say that it is an error and that the job they requested to be done, ie have our loan cleared hasnt been done but should be done by the end of today! I have demanded compensation and they say they will discuss it with us later.

So if you get refused credit, it might not be becuase you have bad credit it willk be cos the bloomin loan company hasnt informed them you have paid!!!!!!

Rant Over!

Thats really bad news, what about your credit rating, will it get sorted!!

[Alice]

What a bummer Allotmentlady.
When the loan thing is all sorted out make sure Experian have ammended their records.

[straightline]

I had a similar experience, but, surprise surprise, it was the other way round. i was paying off a loan by bank standing order. I had been for many months. I was eventually informed by the loan company that they hadnt received any payments, and that I was in serious trouble. However, I showed the statements with the standing orders going out, and explained, quite calmly, that as I had official documents showing the money going out, the problem was with their collection agency, NOT my payments or bank. the upshot was, believe it or not, I paid off a loan, got receipts to prove it, but they haven't got hold of the money from their agent!!! Shame, eh?

[SlugLobber]

It can also simply be that you've paid the loan off, AL! It seems that if you don't go the full loan term, in credit rating terms, it's defaulting on the contract. Load of tripe! I don't use credit, these days, except the mortgage and don't miss it at all!

[HeyWayne]

"Beware of settlements!"

I was half expecting to read that a tribe of Navajo Indians had set up camp on your plot!

[piskieinboots]

bet you didn't know this:

Allotment Information for Navajo BIA Region
The Navajo Nation was allotted under the General Allotment Act as amended. Additionally, 94,000 acres were set aside temporarily for allotment by Executive Order of May 7, 1917.

That's nice innit

[Irie Jan]

It can also simply be that you've paid the loan off, AL! It seems that if you don't go the full loan term, in credit rating terms, it's defaulting on the contract. Load of tripe! I don't use credit, these days, except the mortgage and don't miss it at all!

most times when you pay off a loan early it is used as a way to improve your credit rating not the reverse! Each company appear to make thair own rules and mess ups as they go along tho!

A few years ago I cleared a loan, very early, about 3 years early! My bank worked out the amount of intrest I was owed for paying early to subtract it from the final payment. I took their word for it as the loan was with them. It turns out they had worked it out all wrong!

The mistake was spoted just last year by the big bods at the bank while doing a review of their loan policies. It turned out that for once one of the big 4 banks owed me money I got a letter informing me that the mistake had been made and that the money would be deposited into my account. It was only about £20 odd pounds but still better off in my pocket than theirs!

They even worked out the amount of intrest that had notched up over the 5 years since I paied the loan off, that was added to the money put back into my account. I say its a shame the amount they owed me was not a bigger one, the intrest over 5 years adding on would have made a nice wind fall, nevermind good things come to those that wate so they say!

[Newbie]

Experian (and any other credit reference agency) are obliged to amend your credit report if it shows incorrect information, please do contact them & request it to be amended once you have sorted it out with your Loan provider (i.e had an official confirmation that it was their error & the balance has been cleared). Once requested your credit file should be cleared within a week or so.

[Irie Jan]

Oh A. L. I forgot to say, good luck with sorting it all out! I hope you get some sort of compensation!

[allotmentlady]

thanks very much xxx

[stephenwithap]

make sure you get compo coz they will try to wriggle out of it
and also make sure that they make your credit rating right
coz other wise you may have topay for it
it happened to me years ago same thing and that was with yorkshire bank if i remember rightly
and these kind of things used to stay on your credit report for 3 to 5 years and then i had to pay to get it removed about 35.00 i think it was prob diff now but worth lookin into so you dont get stung

[allotmentlady]

they have just called, they have said that they have now closed the account and have sent an urgent request to the credit people to inform them that it had all been sorted out. They are sendiing me a letter confirming this with a 40.00 compensation cheque.......here i go to the garden centre lol! I am happy but will be satisified once the letter arrives and all is sorted!

[dexterdoglancashire]

Glad to hear your latest update AL. There was something similar on tv recently, watchdog I think. A warning for everyone tho - always double check these things are finalised properly.