Why Credit Reference Agency Disputes are Unfair to Customers

unfair information on credit filesCredit reference agencies like experian and equifax claim to help us as customers dispute any information they see as ‘wrong” on the credit files which they hold. This process involves us raising a dispute, the credit reference agency then queries the information with the lender on our behalf.

While that’s all very well and good it really isn’t enough!! Our latest dealing with both of these credit reference giants has shown a serious flaw in the way the dispute the information on our behalf, and yet refuse to remove it.

Example of the poor disputes process by experian and equifax

Recently a customer of experian’s credit expert and of equifax who pays their £14.99 charges every Month to be a member with all it’s alleged benefits had a default registered on their credit file, by a company they had never heard of. She raised a dispute with both companies, and both asked the lender to see of the information was correct.

The company whom reported the default stated the information was correct and should remain on file. The credit reference agencies told the customer the information was correct, and wouldn’t be removed, they also advised them to contact the lender, or in this case debt buying company!

The customer contacted the company (a debt purchaser) who had to go back to the original lender to get proof of the debt, so the agencies had no proof when they disputed the info, and either did the company who reported the default!

The debt buyers didn’t have any paperwork, agreements, contracts or applications in relation to this alleged account until almost 3 Months after the credit reference agencies “took their word for it” and refused to remove the default.

So at the time the credit reference agencies refused to remove the derogatory information and were told it was correct, the company that reported the default didn’t have proof it even existed and had to ask elsewhere, so how did they know it was real? How could the credit reference agencies just accept their word against a customers?

This shows a blatant disregard for customers of the credit reference agencies. Although lenders sign up to the credit reference agencies terms and conditions, and are supposed to report accurate information, it’s obvious they are NOT, and the agencies just accept it.

Experian claim to make over 350 DETAILED CHECKS and invest Millions of pounds every Year to do everything they can, to ensure the information is accurate and up to date.

The only check they appear to do when info is disputed is ask someone else, who doesn’t even know themselves!

At this time the information is still on the customers report, the paperwork the debt buyer has provided is a disgrace and is being reported to action fraud. The person in question had also issued a court claim to the debt purchaser, and has issued letters before action to the credit reference agencies and will be taking court action for compensation for failing in their duty, defamation, and most likely libel depending on solicitors advice in the coming few days.

Merligen Investments Appear to be Using Underhand Tactics

Merligen Investments Ltd are the latest company to use what we would consider to be underhand tactics to get a financial advantage over customers. There has been an increase in the number of people seeing defaults placed on their credit files by Merligen and these appear to be done so incorrectly, in an attempt to get the customer to contact them in regard to an old debt which Merligen have bought.

The debts in questions are often very old, even statue barred but all are sold to Merligen often after being written off by the original creditor. The defaults seem to appear in batches on peoples files and that would tie in nicely with Merligens advertising to buy portfolios of debt from lenders.

The debts themselves seem originate from a wide range of lenders, but most seem to be the less helpful or bottom feeders in the credit industry. Door step lenders seem to be using Merligen to sell their old noncollectable debts such as shoppercheck which is a case we are helping with. V12 finance is another lender previously known as clode finance who appear to be selling old debts to Merligen.

Our concern with these is Merligen appears to be buying the debts without checking they are even legitimate, the case we have looked at they had to ask the origional lender for proof of the debt so obviously hadn’t checked it or had any paperwork for it, so they just buy debts with no proof of existence, and then register defaults and interrupt people lives?

In the case we have they registered the default in November 2013, and backdated it to March 2013 way over the 3 to 6 Months the ICO gives as a guideline for filing defaults. Add to that the original lender never reported to any credit reference agency, no payments were made for around 3 Years, and by looking at the payment history a default would have occurred i 2006 when the alleged loan was taken out.

Above notice I said alleged loan as this is disputed by the customer, no significant proof of it’s existence has been forthcoming. All that was recived was a blank amount of loan application, an unsigned credit agreement and a sketchy looking payment history.

Our customer has issued a compliant to the ico, and stated a claim via the courts for compensation as this has caused severe problems for her, which we hope to resolve asap.

If you are having problems with Merligen investments you may also receive letters from Moriarty Law, don’t telephone them you need to first raise a dispute with the credit reference agencies to see where the origional debt has com from. The CRA’s are unlikely to help though so next you need proof the debt exists, contact us if you need any help info@creditrepairman.co.uk