I am always advising consumers to regularly check their credit files to ensure they have not fallen victim to identity fraud.
However, there is another reason to check your credit file, as it is emerging that mistaken identities are fast becoming another common problem and it can cause you significant financial harm.
When you apply for credit (such as a mortgage, personal loan, car finance or credit card), the lender will look at your credit report typically by searching Experian, TransUnion, or Equifax.
Your credit file is a report that shows your financial history. It shows whether you pay your bills on time, how much debt you have, how many times you have applied for credit, whether you’ve missed any payments, and if you’ve had any county court judgments (CCJs) filed against you.
Most of the time credit reports are accurate but as several readers have recently highlighted to me, lenders can cause havoc with your credit files by mixing you up with another customer with the same name.
Lloyds Bank posted a negative report on the credit file of Craig from Nottingham.
The problem was it was nothing to do with Craig and he was therefore a victim of the bank posting to the wrong credit file.
It obvious as the credit file of the bank customer was opened in 1988, when Craig was just 14.
Despite this, Lloyds failed to help to rectify the issue.
I contacted Lloyds on Craig’s behalf and it swiftly took action to remedy the situation, acknowledging the error and apologising.
Shirley from Leicester has struggled to obtain finance for the past 12 months following a lender posting details of default payments on her account.
Again, it was same name, but it was not the same Shirley.
How to fix a mistake on your credit file
If you believe the information on your credit report has been mixed with that of someone else, you should submit a dispute with all of the credit bureaus that have incorrect information on your credit reports.
When submitting your dispute, identify the information that does not belong to you.
This may include addresses, other identification information, and credit accounts.
If you see information on your credit reports you believe is incomplete or inaccurate, you should initially contact the lender or creditor responsible for the incomplete or inaccurate information.
If you are correct, the lender/creditor should rectify the issue with the credit
