There is no blacklist. There are three credit reference agencies in the UK who store information about your credit history. This information is called your credit reference file or credit report. You can find contact details for each of these agencies in the next steps section.
The creditor will review your credit report if you are applying for credit (such as a loan, credit card, mortgage, or bank account with an overdraft facility). They will use that information to decide if they will lend to you. The credit reference agencies provide information to help lenders make a decision. They do not say who can and cannot have credit.
Most information stays on your credit report for six years, but this is not always the case. The information that you may find and the duration for which it will be displayed on your credit report are listed in the table below.
You can request a copy of your credit report from the credit reference agencies for a fee of £2. You should check your reports regularly to make sure the information about you is correct.
Check the reports from all three credit reference agencies. Since not all creditors work with every agency, you might find information on one report that isn’t on another.
To find out how to correct inaccurate information you discover on your record, get in touch with the credit reference agency.
You can put information on your own credit reference files. This will be read by the creditor if they check your credit report. This is called a notice of correction, and it can be as long as 200 words and is free to complete.
If something occurred that you believe creditors should consider when granting credit, such as receiving a judgment from a sheriff court while you were ill, and you are having trouble obtaining credit, you may find that a notice of correction is helpful. Here are some examples:
It can be difficult to navigate the murky waters of debt collection, particularly if you don’t know your legal rights or what the collectors can do. Being placed on a blacklist is one of the greatest concerns that people have since it can have a big effect on their financial future. However, is it true that debt collectors can put you on a blacklist? Let’s explore the nuances of the Fair Debt Collection Practices Act (FDCPA) and find the answers to these frequently asked questions.
Understanding the FDCPA: Your Shield Against Abusive Practices
The FDCPA is a federal law that protects consumers from abusive and unfair debt collection practices It outlines specific regulations that collectors must adhere to, including restrictions on communication methods, harassment, and false or misleading statements.
Can Debt Collectors Blacklist You? The Short Answer
No, debt collectors cannot directly blacklist you. Blacklisting typically refers to being added to a list of individuals deemed high-risk borrowers, making it difficult to obtain future loans or credit. However, the FDCPA prohibits debt collectors from directly reporting negative information about you to credit bureaus unless the debt is valid and you haven’t disputed it.
However, there are some indirect ways debt collectors can impact your credit score, which can indirectly affect your ability to borrow money. Here’s how:
- Reporting Delinquent Debts to Credit Bureaus: If you fail to pay a debt, the collector can report it to credit bureaus as delinquent, which can negatively impact your credit score. This negative mark can remain on your credit report for up to seven years, making it harder to qualify for loans or credit cards with favorable terms.
- Selling Your Debt to a Collection Agency: When a debt goes unpaid for an extended period, the original creditor may sell it to a collection agency. This agency then has the right to report the debt to credit bureaus, potentially lowering your credit score.
- Taking Legal Action: If a debt remains unpaid, the collector may sue you in court. A court judgment against you can severely damage your credit score and make it challenging to obtain future loans or credit.
Protecting Yourself from Debt Collection Mishaps
Knowing your rights under the FDCPA is crucial in protecting yourself from unfair debt collection practices, Here are some key steps you can take:
- Review Your Credit Report Regularly: Monitor your credit report for any inaccuracies or negative marks related to debt collection. You can obtain free copies of your credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) once a year at AnnualCreditReport.com.
- Dispute Errors on Your Credit Report: If you find any errors on your credit report, such as debts you don’t recognize or that have been paid, contact the credit bureau and dispute the information. The credit bureau is obligated to investigate and correct any errors within 30 days.
- Communicate with Debt Collectors: If you’re contacted by a debt collector, be sure to communicate with them in writing. This creates a record of your interactions and helps protect you from potential harassment or false claims.
- Know Your Rights Under the FDCPA: Familiarize yourself with the FDCPA’s regulations and understand what debt collectors can and cannot do. If a collector violates your rights, you can file a complaint with the Federal Trade Commission (FTC) or your state attorney general’s office.
Remember, you have rights when it comes to debt collection. By understanding the FDCPA and taking proactive steps to protect yourself, you can navigate this challenging situation with confidence and minimize the potential negative impact on your financial future.
Additional Resources:
- Federal Trade Commission (FTC): https://consumer.ftc.gov/features/debt-collection
- Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-collector-en-314/
- National Consumer Law Center (NCLC): https://www.nclc.org/
Remember, you’re not alone in dealing with debt collection issues. Numerous resources and organizations are available to provide guidance and support. Don’t hesitate to reach out for help if you need it.
Example Notice of Correction
I have bipolar disorder that I am receiving treatment for and have been for many years. I manage my money wisely most of the time, setting aside money for bills and making timely payments on them. However, during my manic episodes, I have a history of making careless purchases and applying for more credit than I can handle.
If there are times when you apply for credit frequently, you can notify lenders of these instances by using a notice of correction. This could be because of a condition and can be a way to warn lenders. It is not a guaranteed way to stop creditors lending. However, if you have accrued debt while ill in the past, it might help ensure that it doesn’t occur again.
DO NOT Pay Debt Collectors | How to Handle Debt When It’s Gone to Collections
FAQ
What can happen if you ignore debt collectors?
Can debt collectors blacklist?
How long before a debt becomes uncollectible?
|
State
|
Written
|
Oral
|
|
Alaska
|
6 years
|
6
|
|
Arizona
|
5 years
|
3
|
|
Arkansas
|
6 years
|
3
|
|
California
|
4 years
|
2
|
Can debt collectors get you in trouble?
What if a debt collector failed to give me information?
You may see other information on your notice, but the information listed above generally must be included. If you think a debt collector failed to give you this information, you can submit a complaint with the CFPB. Once you receive the debt validation information, you have 30 days to dispute the debt in writing.
What happens if a Debt Collector calls you?
It puts the onus on you to try to prove a negative: You: “Look, here’s my ID and my current phone bill.” Them: “You could have changed your name. Pay up.” The Fair Debt Collection Practices Act already requires collectors to stop calling or contacting you — unless it’s to notify you of an actual legal action — if you ask them to.
Are debt collectors obnoxious?
Debt collectors often have a reputation for being obnoxious, rude, and even scary while trying to get borrowers to pay up. The federal Fair Debt Collection Practices Act (FDCPA) was enacted to curb annoying and abusive behaviors. Even so, some debt collectors flout the law.
Is a debt collection call a scam?
Here are a few red flags signaling a debt collection call could be a scam: The debt collector threatens you with criminal charges. There are only a few circumstances when a debt can lead to an arrest. Legitimate debt collectors should not claim that they’ll have you arrested.