Notice of Correction

A Notice of Correction is a statement that you can choose to have included on your credit report to explain an entry on it. This should be considered if you find there is information on your credit report that, although is factually correct, you believe gives a misleading impression of you.

When applying for credit, such as a personal loan, a lender with perform a credit check on you. Anyone that searches your credit report will have access to your Notice of Correction and must take this into consideration when you make an application for credit. You must also take into account however, that because they are obliged to read your Notice of Correction it can take longer for a decision to be made.

There are many instances where it would be beneficial to add a Notice of Correction to your credit report, this would include;

• If you have recently married, separated or divorced, so have changed your name.

• If you suddenly became unemployed and fell behind with repayments on your home, any unsecured loans, or credit cards.

Before a Credit Reference Agency can include your Notice of Correction you must first obtain a copy of your credit report. How to get your credit report

Once you have received your credit report you would need to go through the information supplied to see if there are any discrepancies. If there is any information you believe to be inaccurate then you can dispute this. The agency should then revise the information you have disputed. If however, the information is factually correct, you are then entitled to include a Notice of Correction.

To add a Notice of Correction you need to contact the Credit Reference Agency, quote your reference number, and verify the exact wording you want them to add to your credit report. The Credit Reference Agency then has a maximum of 28 days, from receipt of your Notice of Correction, to complete the process.

Your Notice of Correction must contain no more than 200 words. It should give a truthful explanation of why you consider an entry on your credit report to be inaccurate or misleading. Your Notice or Correction should also not be defamatory, incorrect, or refer to a third party by name. Credit Reference Agencies will not process a Notice of Correction that is inappropriate for publication.

Please note that there a three main Credit Reference Agencies through which lenders can search your credit report. Therefore we would advise contacting all three Credit Reference Agencies with your Notice of Correction.

Below we have provided examples of wording you can use if you wish to include a Notice of Correction on your credit report. Remember to include details of the entry your Notice of Correction applies to.

 I, Mr/Ms XXXXXX, would like to explain the circumstances that led to the Default recorded against account XXXXXX on DD/MM/YY. I was involved in an accident through which I was unable to work for several months. My income was reduced to just XXXXXX which meant that I couldn’t afford to keep up the repayments I had been making. I have now fully recovered and have been back at work for a month. I am now comfortably repaying all former debts and ask that this be taken into consideration when searching my credit report.

 I purchased XXXXX in DD/MM/YY. Ten years later, in DD/MM/YY, I became unemployed and, on a lesser income, struggled to keep up with the repayments on my mortgage. For the ten years prior to this I had never missed or made a late payment. Having been in arrears for many months the bank repossessed the property. I have managed to avoid bankruptcy, and I am once again in full time employment. I have also just moved into a rented property, which I can easily afford, along with the repayments on former debts. I ask all lenders searching my credit report that the above be taken into account. I previously had a good record and believe I deserve a second chance.