Credit Report Accuracy After Trust Deeds
Many people that have completed their Scottish trust deeds wonder how their credit report will appear and what they might do to help improve their credit rating. A good starting point is to get hold of a copy of a credit report a few weeks following protected trust deeds discharge. This will allow you to confirm whether the information held about your financial status is correct.
Many people are shocked to find that their credit report isn’t accurate following the completion of their trust deeds. Common problems include a lack of confirmation that the trust deed has been discharged, default notices issues after the date trust deeds began, default notices that aren’t marked as settled (or partially settled), and credit account balances that continue to show despite the fact that the debt no longer exists.
Our trust deeds advice team gets many calls about where the responsibility for correcting this situation resides. The answer isn’t always entirely clear.
The companies that handle trust deeds (insolvency practitioners) are not responsible for reporting information to credit reference agencies, nor are they responsible for requesting that creditors amend information that has been reported to credit reference agencies. Therefore dealing with credit records following the end of protected trust deeds falls outside of their professional scope.
The creditors of those people that have completed Scottish trust deeds are responsible for making sure that information which they have reported about their former clients to credit reference agencies is accurate. They have data protection obligations in this respect. These ex-creditors following trust deeds should:
- Backdate any default notices issues after trust deeds began.
- Mark default notices as being satisfied or partially satisfied.
- Not continue to show that debts are due to them if they have been written off.
If your creditors haven’t properly updated your credit record you should contact them and ask them to do so promptly. Most will comply, but where creditors do not do so within a reasonable period of time you may wish to initiate their complaints process. If they still fail to deal with the matter you can report them to the Information Commissioner.
Following the completion of trust deeds the credit reference agencies also have responsibilities to ensure that they information they make available about you is accurate. If it is not apparent that trust deeds have been completed and discharged it can render the use of credit almost impossible. If you provide a credit reference agency with confirmation of your discharge from a trust deed they should promptly correct their records.
We can identify that creditors and the credit reference agencies have responsibilities to ensure that credit reporting is accurate following the completion of Scottish trust deeds. However, the responsibility for identifying any errors and requesting that corrections are made is firmly that of the individual that has recently completed their trust deed. This may seem unfair, but without taking a personal interest in the subject and acting where necessary it’s unlikely that errors will be quickly amended.
For further information on this subject you may wish to visit our trust deeds forum to ask the experts or to seek feedback from people that are working through the same issues. You may also wish to visit our free credit report trial page for our suggestion of a good place to start the process of ensuring credit report accuracy following Scottish trust deeds.
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