Nationwide customer payment holidays reported on credit reports
Nationwide Building Society told us that it falsely reported details of payment holidays arranged on some personal loan accounts as “missed payments” to the three major credit reference agencies – Equifax, Experian and TransUnion.
Nationwide insists it quickly realized its mistake and contacted agencies asking them not to upload the data, and provided replacement data correctly describing people’s accounts as up to date. However, it is believed that a credit reference agency uploaded the incorrect information.
The construction company says it worked with the relevant agency – which MoneySavingExpert.com has confirmed to be Equifax – to replace the incorrect information, and this was corrected on Tuesday, May 19. Nationwide insists that there will not be a “continuing impact” on the credit reports of the affected borrowers and that the issue is now resolved – although if you are concerned that you have been affected, check your credit report. credit and if you spot anything wrong, contact Nationwide as ASAP.
For more information on loan, mortgage and credit card payment holidays, see our Help with Coronavirus Finances and Bills to guide.
What didn’t go well?
Nationwide says it uploaded some personal loan payment holidays to Equifax, Experian, and TransUnion as missed payments rather than contract payments. The mortgage lender says the problem only affects payment holidays for customers with personal loans, not those who have taken credit card or mortgage payment holidays.
He maintains that he quickly realized the error and alerted credit reference agencies not to upload the erroneous data.
However, MoneySaver Annalese contacted us to tell us that she had received a negative alert from two credit monitoring apps – Clearscore and CreditWise. When she logged in, she saw that the most recent payment on her Nationwide personal loan had been recorded as “missing or past due”. Clearscore uses data from the Equifax credit reference agency.
Nationwide’s payment holiday terms and the regulator’s payment holiday guidelines state that there should be no impact on the credit reports of clients taking payment holiday. Annalese says she wouldn’t have taken the vacation if she thought her credit report would be affected. She said: “I am very angry. I am currently talking about an application with a mortgage broker and I have told him that I have a ‘very good’ credit rating. I have never missed a payment on anything, ever. “
Nationwide has confirmed that Equifax has now corrected the error and replaced the payment holiday data with the correct data. It says that customers who were affected by the error and who are checking their credit report should now see that their payments are reported as up to date.
Annalese told us that her loan payment now appears as up to date on her credit report. She says Nationwide also offered her compensation for the error.
How can I check if my payment holiday has been correctly reported?
If you’ve taken any type of payment holiday, it’s always worth checking your credit report to see that it was reported correctly – and given this issue, that’s especially the case if you have taken a personal loan payment holiday with Nationwide.
If you were up to date on your payments on a particular loan, credit card, or mortgage before the payment holiday, your credit reports should always tell you that this product is up to date. If you were already in arrears with payment and you were granted a payment holiday, you should not be marked as overdue for further payment due to the payment holiday.
For security reasons, it is worth checking your reports from the three credit reference agencies, Equifax, Experian and TransUnion (formerly Callcredit), although only Equifax downloaded the erroneous data from Nationwide and has now corrected the mistake. For step-by-step help, see our guide on how to check your credit reports for free.
Although Nationwide insists that this error has now been corrected, if you check your credit report and find something wrong, contact Nationwide as soon as possible.
What does Nationwide say?
A Nationwide spokesperson told us, “After sending our regular update to the credit reference agencies, we noticed that some personal loan payment holidays were wrongly reported.
“We apologize for the mistake … There is no ongoing impact on members’ credit records.”
Equifax has also confirmed that the issue has been resolved.