Checking your credit file is one of those things that is easy to put off. You assume the information being reported is correct, especially when it relates to accounts that have already defaulted or been passed to a debt collection agency.
But my experience with BetterBorrow, Chetwood Financial and Cabot shows why that assumption can be risky.
BetterBorrow Sold My Debt to Cabot
I previously had a BetterBorrow loan, provided by Chetwood Financial, which later defaulted. After this, the account was sold to Cabot.
That part was not unusual. Debts are often sold or transferred to debt purchasers after default. The problem came when Cabot began reporting the account on my credit file with a Debt Management Plan marker.
This was not correct.
Although I had previously made reduced payments and had dealt with creditors myself, this account was not in an official Debt Management Plan at the point Cabot added the marker. There was no active formal DMP arrangement that should have been reported in that way.
Why the Marker Mattered
A Debt Management Plan marker may not sound dramatic, but on a credit file it can make a real difference.
Credit file data is not just a historic record. Lenders use it to assess risk. Mortgage lenders, loan providers and other financial companies may look at markers like this and treat them as evidence that a borrower is currently or recently in a managed debt arrangement.
In my case, the concern was that the DMP marker made the situation look worse than it actually was. It suggested there was an active Debt Management Plan connected to the Cabot account, when that was not accurate.
This matters because credit file information should be fair, accurate and up to date. If incorrect markers are added, they can affect how lenders view you, even if the underlying debt position has already been dealt with or moved on.
Complaining to BetterBorrow and Chetwood Financial
Once I spotted the issue, I raised a complaint.
Rather than simply accepting the reporting as correct, I challenged it. I escalated the matter through the CEO of Chetwood Financial, the company behind BetterBorrow.
That escalation helped get things moving.
After looking into the issue, BetterBorrow realised that an error had been made. The DMP marker should not have been reported against the account in the way it had been. BetterBorrow accepted this and arranged for the data to be corrected.
That was the key point: the error was not obvious unless I checked my credit file carefully and questioned what had been added.
The Data Was Corrected
Following the complaint, BetterBorrow confirmed that the incorrect Debt Management Plan marker would be removed from the credit file reporting.
This was important because once an account has been sold to a debt purchaser, it can sometimes feel like responsibility becomes blurred. The original lender says the debt has been sold. The purchaser reports the account. The credit reference agencies display the information.
But if the data is wrong, somebody still has to take responsibility for correcting it.
In this case, challenging the issue directly with BetterBorrow and Chetwood Financial led to the mistake being acknowledged and corrected.
What This Shows About Credit Files
The biggest lesson from this experience is simple: do not assume your credit file is right.
Mistakes happen. Accounts can be transferred. Data can be duplicated. Markers can be added incorrectly. Dates can be wrong. Payment arrangements can be misunderstood. A debt purchaser may report something based on information they received, but that does not always mean the reporting is accurate.
This is especially important if you are applying for a mortgage, trying to rebuild your credit, or working through old defaults. Small details can make a big difference.
A lender may not know the backstory. They will usually see the data first. If that data wrongly suggests you are in an active Debt Management Plan, have recent arrears, or are still under a formal arrangement, it could affect the decision.
What to Check on Your Credit File
When reviewing your credit file, do not just look at your credit score. The score is only a summary. The detail is what matters.
Check things like:
- Whether default dates are correct
- Whether balances are accurate
- Whether accounts are marked as open or closed correctly
- Whether old arrangements are still being reported
- Whether a Debt Management Plan marker has been added
- Whether the same debt is being reported twice in a misleading way
- Whether a debt purchaser is reporting information that does not match the original lender
If something looks wrong, challenge it.
My BetterBorrow and Cabot Experience
My BetterBorrow and Cabot experience shows why it is worth checking your credit file regularly, especially after a debt has been sold.
In my case, Cabot added a Debt Management Plan marker against the account even though it was not in an official DMP. I complained through the CEO of Chetwood Financial, BetterBorrow investigated, realised the error and corrected the data.
Had I not checked my credit file, that incorrect marker could have stayed there and potentially caused problems with future lending decisions.
Credit file errors are not always obvious, but they can be damaging. If something does not look right, question it. Ask for evidence. Raise a complaint. Escalate it if needed.
Your credit file should reflect the facts, not an inaccurate version of events.
