Poor credit history showing on Central credit register and not on ICB mortgage approval

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kitty13!

Registered User
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8
Hi,

Would appreciate anyones guidance on my situation..

I applied for a mortgagage last year with AIB and was approved for a smaller amount as i had a loan with them at the time. I decided to reapply again as the loan had been cleared and I was hoping to get a higher amount

On applying, I recieved a mesage asking was I aware of a €862 unpaid debt and I originally thought they were mixing me up with my husband ( who had a debt written off, but still appearing on his icb until 2021) hence why I applied individually.

So I since found out this was my debt and was quite surprised as I thought I had cleared any debts years ago. I had a loan for 3440 euro in 2010 with aib which I defaulted on as came out of college in a recession and no work. I entered full employment in 2014 and was in a position to pay debt. As this debt was with intrum justitia I entered into a agreement to pay monthly 100 euro installments..which I did and looking at my bank statements which was coming out at the same time each month.. noticing there was a stage this hadn't happened. Intrum rang me and I was confused as to why payments would stop as thought it just automatically came out of my bank each month. It was noticed I had applied for a replacement bank card ( as ive a tenancy to loose cards :/) I gave intrum new card details and the payments started again . Thinking everything was being paid, im now surprised to see this debt come up. After a bit of investigation on my bank statements i noticed a few months later the payments stopped and of course this corresponds with another repalcement bank card and tbh totally forgot about intrum as never noticed it coming out monthly anyways.

Aib said i was reviewing arrears letters until 2018, but since I reside in dublin and not my parents home address, I was missing these correspondences..

I always thought I was fine as icb never showed up anything years ago, I was approved a 20,000 euro loan with aib which Ive recently finished off a year early ( just paid off a lump sum of 5k last month to finish it). So I've always been under the impression I had no debt.

Aib said they approved my first smaller amount loan last year as they only looked at icb and now the ccr is showing this.

Do I have any chance at all...should I go to intrum and pay this off straight away and will this show on my ccr for 5 years now.

Feel like I've wasted so many years building up a good credit rating paying my loan on time monthly, thinking I had no debt, saving consistently and its going to kill me to start waiting 5 years again..

I haven't replied to aib yet as would like external advice first

Thanks
 
Hi Kitty. I'd try and meet your AIB bank manager and discuss it with him or her.
Like you said in your opening post it was more an oversight than a refusal or inability to pay.
They may be able to talk to those higher up in the bank and get them to change your record.
I'd give it a try anyway.
 
kitty13! said:
Feel like I've wasted so many years building up a good credit rating paying my loan on time monthly,
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Yes, it's really a terrible waste paying your debts. Repayment should be optional.

And banks should be barred from refusing mortgages to people just because they have defaulted on previous loans.

Brendan
 
Brendan Burgess said:
Yes, it's really a terrible waste paying your debts. Repayment should be optional.

And banks should be barred from refusing mortgages to people just because they have defaulted on previous loans.

Brendan
Click to expand...

Brendan maybe I should have been more clear in my last message as I appear to have pushed your buttons.

What I'm saying is 4 or 5 years have passed since this oversight and if I had have known this issue ( which I had the money coming out consistently for a year and half every month and only looking back now seen this had stopped, not due to the fact there was no money but a replacement card)

So yes I should feel quite frustrated, working hard all these years, saving consistently and actually having a good track record with my bank...mistakes of the past happen particularly at a young age in a recession..ive clearly learned from this as ive matured. . Believe me I would have rectified this situation had I known years ago.

I'v seen alot of your sarcastic tone in messages on these boards, which clearly you enjoy..i will hold back on the category I would put you in. But im sure you know yourself.

I hope you enjoy the satisfaction it gives you and thats its not the only satisfaction you're getting in life..

Sincerely,

A young person, trying to start a life ( who has recently had 2 miscarriages) not the best start..but as a very resilient person will just get back up again :)
 
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You defaulted on your loans

You saved a lot of money and did not clear your old loans.

You were not organised enough to realise that you owed money or to have your post sent on to you.

You are a bad credit risk. Especially in a country where the lender has no sanction on people who don't meet their mortgage repayments so everyone else has to pay a higher rate for you.

I absolutely take your point that a young person can make financial mistakes which should not be held against them forever. But you have still not rectified this as far as I can make out from your post.

Brendan
 
RichInSpirit said:
Hi Kitty. I'd try and meet your AIB bank manager and discuss it with him or her.
Like you said in your opening post it was more an oversight than a refusal or inability to pay.
They may be able to talk to those higher up in the bank and get them to change your record.
I'd give it a try anyway.
Click to expand...
Brendan Burgess said:
You still seem to regard paying a loan on time as a waste.

Brendan
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wasted- as in was not aware of the fact that I still had this debt. If the debt was cleared back then, I would not be sitting here for a another 5 years is what i mean.. My icb was clear, I was approved a mortgage last year, under the illusion I had no debt.. the new CCR is where this is showing, that I was not aware of..

If my ccr comes back, it will be paid in full, which is what I was trying to achieve last time.

Enjoy your evening as a keyboard warrior ;)
 
kitty13! said:
wasted- as in was not aware of the fact that I still had this debt. If the debt was cleared back then, I would not be sitting here for a another 5 years is what i mean.. My icb was clear, I was approved a mortgage last year, under the illusion I had no debt.. the new CCR is where this is showing, that I was not aware of..

If my ccr comes back, it will be paid in full, which is what I was trying to achieve last time.

Enjoy your evening as a keyboard warrior ;)
Click to expand...

You say you were approved a mortgage last year,im guessing that offer now has lapsed ?
 
kitty13! said:
If my ccr comes back, it will be paid in full, which is what I was trying to achieve last time.
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Would you lend a very substantial amount of money to someone who still has not paid off a debt, even after it’s been pointed out to them?

The process is not automatic, a loan officer will have to put their name to a document granting you the loan. And those decisions impact their end of year bonus and career, so they are going to need to have confidence in you. And not clearing outstanding loans, not knowing about your debts and not keeping your address up to date is not going to help.
 
You will have to clear the loan and wait the 5 years . I took out personal loans when I was 22 and got myself in a mess . Cleared them up just last week (thanks to tracker redress) . I’m 37 now and will be 42 when my record is cleared . That’s 20 years my bad record had followed me . Pay it off and start saving up . It’s unlikely any lender will approve you until your record is resolved .
 
Introuble83 said:
You will have to clear the loan and wait the 5 years . I took out personal loans when I was 22 and got myself in a mess . Cleared them up just last week (thanks to tracker redress) . I’m 37 now and will be 42 when my record is cleared . That’s 20 years my bad record had followed me . Pay it off and start saving up . It’s unlikely any lender will approve you until your record is resolved .
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Thanks for the reply Introuble83, I will definitely be clearing the debt, thats no doubt. My question was really around the 5 year wait and had anyone else had these similar experiences. Glad to hear you've seen the end of your debt :)
 
Jim2007 said:
Would you lend a very substantial amount of money to someone who still has not paid off a debt, even after it’s been pointed out to them?

The process is not automatic, a loan officer will have to put their name to a document granting you the loan. And those decisions impact their end of year bonus and career, so they are going to need to have confidence in you. And not clearing outstanding loans, not knowing about your debts and not keeping your address up to date is not going to help.
Click to expand...

I understand where you're coming from and the process is not just as simple as that. I more started this thread to see if there was any hope of getting a mortgage before the 5 year mark.

I'll just make peace with the mistake, rectify the issue and move on..

I've a substantial saving, and if I continue this trajectory for the next few years, theres the possibility of buying the house with cash

Wouldn't that be an even better situation
 
Hi Kitty. I'd still try talking to your bank manager. It's the credit institutions (banks etc.) that write the stuff on your credit file. They have the power to rewrite them.
 
kitty13! said:
On applying, I recieved a mesage asking was I aware of a €862 unpaid debt and I originally thought they were mixing me up with my husband ( who had a debt written off, but still appearing on his icb until 2021) hence why I applied individually.
Click to expand...
If you are married, you would need to submit a joint application if the mortgage is for a PPR.
 
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