Partner's credit rating affected by 15 yrs ago

black purr girl

I need help.

My partner has had a mortgage for the past 10 years, in his own name only. He has paid each month without missing a repayment.

Recently he applied through a broker, again in his own name, for a mortgage on his modest family home in order to 'buy out' his siblings.

It turns out that about 15 years ago, before I met him, he did not pay off a credit card bill/loan. The broker went to the same institution that he didn't pay off the load to 15 years ago, nor surprising that he was refused really.

My partner seemed to think that it was a matter for this institution only, but a check with the Irish Credit Bureau seems to show 3 pages, 2 with scores of 550 and one with a score of 50. The lending institution is mentioned.

I have a question; before he reapplies to a different institution, what would be the best thing to do about this credit card loan from 15 years ago? Pay it obviously. Will they charge him 15 years interest? For how long will this be held against him? How did he get a mortgage 10 years ago without this coming up?

Any insight would be much appreciated as I am very, very worried about this.

black purr girl

...I should add that my partner seems convinced that the bank he is planning on applying to will 'make up their own mind' but it is my understanding that any lending institution will of course look at the Irish Credit Bureau?

I should also add that there are 3 pages to the report from ICB. Only the last page give score of 50, which he seems to think is contradictory information.

Greenmachine

Bank were pretty lax 10 years ago regarding checks etc. Now it appear the something has hit the fan. Is it possible your other half failed to mention the CC debt and it went unnoticed in the first instance. It might only now be an issue because he has lied about it.

conorh91

Is there any chance there was a judgment against your husband in respect of this debt within the past five years?

It have heard of banks supposedly delaying the initiation of proceedings against a debtor in order to make maximum extension of window of liability set down by the the statute of limitiations.

So for example, in an extreme case a lender might wait five years and eleven months before seeking an order, and but the credit report will contain that fact for a further five years following this judgment, meaning 11 years of bad credit, or thereabouts.

black purr girl

When we got together, 10 years ago he told me that he had not paid a credit card debt. As I was worried about it, he says he went to MABS. He claims that they told him there was not any record of the debt?? This was 10 years ago. Obviously that's totally irrelevant as the debt was not paid and it has resurfaced meaning he was refused a mortgage.

My question would be, what would the best thing be to do about it? I think that he assumed that as it had happened so long ago it would be forgotten. On the credit report it seems to give conflicting information. Will any credit institution definitely find out about it? For how long do they hold these things against you?

black purr girl

conorH91 - how would someone know if there was a judgement against them?

Porridge77

There should be a removal date on the icb report. When does it state that this record is due to expire ?

Teyla Emmagan

All institutions check the ICB. There is no one who won't, they may each make up their own mind as to how much of a risk he is though. Also, they will know if he's applying around (and therefore if other banks have refused him). Each check on a record is noted, as is the name of the company checking. So they more people who refuse your bf, the more likely he is to never get a loan, because if other people have refused him he will be seen as more and more of a bad risk.

He can wait it out though. Eventually the bad record will disappear off the end of the report. I forget how long it takes though, ask the ICB.

OU812

6 years for a bad debt, a further 12 if a judgement is applied, and they can apply for the judgement on the last day of the six years giving a potential 18 years on the icb.

More info here: http://www.askaboutmoney.com/threads/does-my-debt-just-disappear-after-6-years-if-the-bank-does-nothing-or-cant-fit-find.177438/

If you contact them within the six years that resets the clock

black purr girl

Porridge77 wrote: »

There should be a removal date on the icb report. When does it state that this record is due to expire ?

I have just looked at it again and it says 2019.

He incurred the debt - didn't pay the credit card bill in 2000. Says they wrote to him for about a year afterwards then he heard nothing. In or around 2004/05 when we got together he went to MABS who said there was no judgement against him therefore forget about it. He then got mortgage on his apartment. 2014 he attempted to get a mortgage on a property he already partly owned and this came up, admittedly his broker went to the institution he had the problem with all those years ago. I believe that they then brought this to the attention of the Irish Credit bureau.

So I wonder are they legally able to do it, after all those years?

phormium

Credit card companies are fairly recent users of the ICB so it is quite possible than when your partner applied for his existing mortgage there was no record on the ICB.

All lenders will do a credit check for borrowing these days so he may as well be upfront about it with any lender.

Does he have a credit union account? That might be an option if the amount being borrowed is not too large. While they will also look at the ICB they are more inclined to listen to an explanation and make their own decision than go by the 'computer says no' attitude of most banks. Rate will be higher obviously and not all credit unions do larger secured loans for property purchase but many do so worth a try.

conorh91

black purr girl wrote: »

conorH91 - how would someone know if there was a judgement against them?

The credit history provided by ICB should show the outcome of a successful legal action, if any.
Otherwise, you could check with the financial institution itself.