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Credit Defaults, Wrongly Lodged · That Home Loan Hub

• 0:10
  SPEAKER_01: All right, listen up to this episode.
• 0:12
  SPEAKER_01: If you have an issue with your credit check, or if you know someone that has an issue with the credit check, and how defaults can be mistakenly loaded against your profile.
• 0:22
  SPEAKER_01: Hello, Kunch.
• 0:23
  SPEAKER_01: Good morning.
• 0:23
  SPEAKER_01: How are you?
• 0:24
  SPEAKER_01: Good morning.
• 0:25
  SPEAKER_01: I'm on fire.
• 0:26
  SPEAKER_00: Yeah, we're on fire, actually.
• 0:28
  SPEAKER_01: All right, you have a really interesting case for us today.
• 0:31
  SPEAKER_00: I thought I'll share this case because in my years of banking and finance, this is the first time I've actually seen this happen.
• 0:40
  SPEAKER_00: So what happens was had a couple who one of the parties had a default lodged on their credit report.
• 0:50
  SPEAKER_00: Found out a wee bit more about it, and it turns out that this default for my financial provider, they were keeping up with their obligations.
• 1:00
  SPEAKER_00: So the couple was keeping up with their obligations to pay this lending and everything like that.
• 1:06
  SPEAKER_00: However, for some reason that got sent to debt collection and then into default.
• 1:15
  SPEAKER_00: So then when they were looking to buy a house, uh a credit check was ran on them, and there was this massive amount of lending default on their credit report showing as unpaid.
• 1:26
  SPEAKER_00: The client had actually paid this all off as well.
• 1:30
  SPEAKER_00: So he didn't act they didn't actually understand why it got defaulted and things like that.
• 1:35
  SPEAKER_00: And they kind of just accepted it.
• 1:38
  SPEAKER_00: Not knowing, and again, this is lack of financial literacy and just not understanding.
• 1:43
  SPEAKER_00: So by working with them and just understanding the timeline of the default, the timeline of the agreement of them making these payments to this debt, it turned out that this um financial provider actually made an error.
• 1:59
  SPEAKER_01: Wow.
• 2:00
  SPEAKER_01: So it was wrongly lodged against them.
• 2:02
  SPEAKER_00: Yeah, so they made an error, lodged us default wrongly, which affected their finance application for a home loan.
• 2:09
  SPEAKER_01: Because they got decline, right?
• 2:10
  SPEAKER_01: Based on the credit chart.
• 2:12
  SPEAKER_00: Yeah, they got decline everywhere.
• 2:13
  SPEAKER_00: We even struggled at second-tier lender as well, because of the amount of this default as well.
• 2:21
  SPEAKER_00: So it was a few thousand dollars.
• 2:23
  SPEAKER_00: So again, as we talked about in our previous episode, is character.
• 2:34
  SPEAKER_00: We're not going to want to give you the step up to borrow, you know, 700k, 500k worth of home loan.
• 2:43
  SPEAKER_00: But at the end of the day, the clients actually disputed that with our support and encouragement for them to dispute that.
• 2:53
  SPEAKER_00: The finance company apologized and it got removed off their credit report.
• 2:59
  SPEAKER_01: Wow.
• 3:00
  SPEAKER_00: So now we're reviewing the home loan application again.
• 3:04
  SPEAKER_01: Wow.
• 3:05
  SPEAKER_01: What a win.
• 3:06
  SPEAKER_01: What a win.
• 3:07
  SPEAKER_01: Such a win for them, right?
• 3:09
  SPEAKER_01: Yeah, and you know, as you mentioned, like that comes down to financial literacy, but also I think, Corunge, it comes down to trust, right?
• 3:16
  SPEAKER_01: We as consumers trust the organization we have debt with will do the right thing by us.
• 3:22
  SPEAKER_01: Yeah.
• 3:23
  SPEAKER_01: We don't question it.
• 3:24
  SPEAKER_01: We just think that we live in a society where everything just done automatically by the system, and if the system is right, the system is right.
• 3:32
  SPEAKER_01: We don't think that the system could be wrong.
• 3:33
  SPEAKER_00: Yeah.
• 3:34
  SPEAKER_01: So I think in the case of this client, as you say, you know, they just assume that the system is right.
• 3:38
  SPEAKER_01: Yep.
• 3:39
  SPEAKER_01: And they're in the wrong.
• 3:40
  SPEAKER_01: Yeah.
• 3:40
  SPEAKER_01: And to actually dig deeper and find out that they were in the right and the system just had it wrong.
• 3:48
  SPEAKER_00: Yeah, what a win.
• 3:49
  SPEAKER_00: It's such a win.
• 3:50
  SPEAKER_00: And like you said, that financial literacy, or as consumers, we would just accept it.
• 3:56
  SPEAKER_00: Even as experienced advisors like us, we kind of were like, okay, there's a default, you know, what can we do?
• 4:05
  SPEAKER_00: Sort of thing.
• 4:06
  SPEAKER_00: It's quite a large one.
• 4:08
  SPEAKER_00: Okay, you know, it is a decline because those things are really hard to mitigate, right?
• 4:14
  SPEAKER_00: But yeah, after investigating, you're like, actually, there is something wrong here.
• 4:18
  SPEAKER_00: Just, you know, dispute it.
• 4:20
  SPEAKER_00: And it was such a good outcome for them, uh, and a good, really good learning curve for me.
• 4:25
  SPEAKER_01: Did you trust your gut feeling on this one?
• 4:27
  SPEAKER_00: Yeah.
• 4:28
  SPEAKER_00: I was just like, this doesn't look right.
• 4:30
  SPEAKER_00: Like something is off.
• 4:31
  SPEAKER_00: Correct.
• 4:32
  SPEAKER_00: And knowing the client as well and their character, uh, you're like, Yes, you guys do, you know, pay your debts and meet your obligation and things.
• 4:42
  SPEAKER_00: There's just something a little bit wrong here.
• 4:44
  SPEAKER_00: So yeah.
• 4:46
  SPEAKER_01: I love that.
• 4:46
  SPEAKER_01: I love when we follow our gut feeling.
• 4:49
  SPEAKER_01: Yeah.
• 4:49
  SPEAKER_01: And often people laugh at me.
• 4:50
  SPEAKER_01: They're like, how can you just follow your gut feeling?
• 4:52
  SPEAKER_01: You're a finance person, you're supposed to, you know, follow your mind and the numbers and things like that.
• 4:56
  SPEAKER_00: But I could have, right?
• 4:57
  SPEAKER_00: I and I I did actually.
• 4:59
  SPEAKER_00: I was just like, oh no, what can we do?
• 5:01
  SPEAKER_00: Like, even speaking to you, we're just like, oh, you know, like that was our saving grace going to second tier, and that that was even hard work.
• 5:12
  SPEAKER_00: And then yeah, it was just like, nah, I just want to find out a little bit more, and just probe the clients that wee bit more, and yeah.
• 5:21
  SPEAKER_00: Yeah.
• 5:21
  SPEAKER_00: I could have just said, yeah, decline, done, dusted, close it, close that case down.
• 5:25
  SPEAKER_01: And that's what happened to them, right?
• 5:26
  SPEAKER_01: Before they came to you, they actually got declined already by another advisor, and there was no further investigation done.
• 5:33
  SPEAKER_01: It was sort of too hard basket.
• 5:34
  SPEAKER_01: Yeah, see you later.
• 5:35
  SPEAKER_01: And then by some miracle, they were put through to us because of your fantastic reputation.
• 5:41
  SPEAKER_01: Um, and you know, and this is where the importance of an experienced advisor comes in.
• 5:46
  SPEAKER_01: And the one that goes, okay, I'm just gonna ignore those numbers for a moment, and I'm just gonna sit there with that feeling of what else can I do?
• 5:54
  SPEAKER_01: Yeah, what else is not right here that I can put my finger on?
• 5:59
  SPEAKER_01: And I think us as physicians, you know, I often make a connection to the doctors.
• 6:04
  SPEAKER_01: You know, sometimes you go to the doctors and you know something's wrong, but the doctor says, No, it's it's all fine.
• 6:09
  SPEAKER_01: But then you will find a doctor that will find something wrong.
• 6:12
  SPEAKER_01: And you knew all along that there's something wrong.
• 6:14
  SPEAKER_01: Yeah, and I think the same for us, like with this client, you knew all along that something was off, you couldn't put your finger to it exactly, but then after sitting down and analyzing it, yeah, it's amazing.
• 6:25
  SPEAKER_00: Like the relief they would have felt.
• 6:27
  SPEAKER_00: Yeah, they're so grateful for the fact of you know being told to just dispute it because they wouldn't dispute it, they didn't even know you could dispute that as well.
• 6:37
  SPEAKER_00: Even I didn't actually know that you could dispute a default if there is clear evidence that it actually an error.
• 6:44
  SPEAKER_01: Yeah, yeah.
• 6:45
  SPEAKER_01: But see, for me, like I remember the story I held I helped a client a few years ago, and she was actually all over the news.
• 6:50
  SPEAKER_01: She came to me, and what happened was someone was raking up debt against her name.
• 6:55
  SPEAKER_01: Yes, unless that situation happened.
• 6:57
  SPEAKER_01: Yeah, and she didn't know.
• 6:58
  SPEAKER_01: She didn't know until until she realized one time, I think it was student loans.
• 7:03
  SPEAKER_01: This person that was raking up all this debt behind the scenes, you know, took out gem visa on her name, after pays, credit cards, etc.
• 7:10
  SPEAKER_01: She didn't know any of this until she noticed there was a student loan payment coming out of her pay slip.
• 7:15
  SPEAKER_01: And she went, I don't have a student loan, what's going on here?
• 7:18
  SPEAKER_01: So she rang up and this person took a student loan.
• 7:21
  SPEAKER_01: Hey, well done person, they decided to even study under her name.
• 7:25
  SPEAKER_01: Okay, how great is that?
• 7:27
  SPEAKER_01: Yeah, so that was the only way she found out that something was off.
• 7:30
  SPEAKER_01: And then when she ran her credit check, she was like negative thousand.
• 7:34
  SPEAKER_01: Wow, we've never seen a negative thousand before.
• 7:37
  SPEAKER_01: Yeah, and when she came to me, she's like, Look, I'm really worried.
• 7:39
  SPEAKER_01: I don't think I can ever buy a house.
• 7:41
  SPEAKER_01: What can I do here?
• 7:42
  SPEAKER_01: Because we're still open investigation, there was a lot of stuff happening, and we managed to get her into a home within three months.
• 7:47
  SPEAKER_01: Yeah.
• 7:48
  SPEAKER_01: Because we managed to dispute all of that, we managed to clear all of that debt and get her credit score back to 900 points.
• 7:55
  SPEAKER_01: And to her, just like those people, you know, she didn't know that she could dispute or be in a winning position to buy a house.
• 8:02
  SPEAKER_01: Yeah.
• 8:02
  SPEAKER_01: Because she thought that's a the the life is over now.
• 8:05
  SPEAKER_00: Yeah, actually, that's a good point though.
• 8:07
  SPEAKER_00: When people steal your identity and then rack up credit to under you, and it's so easy to do because you can apply for things online as soon as you have, you know, someone's passport or whatever, then yeah.
• 8:21
  SPEAKER_01: And that's what happened in her case.
• 8:22
  SPEAKER_01: Apparently, it was her flight mate or something like that.
• 8:27
  SPEAKER_00: Someone close to you.
• 8:29
  SPEAKER_00: Well, otherwise, how else would they get her driver's license?
• 8:32
  SPEAKER_00: Correct.
• 8:32
  SPEAKER_00: Yeah.
• 8:33
  SPEAKER_00: Something like that happened to um one of my siblings, actually.
• 8:36
  SPEAKER_01: Did you steal their ID?
• 8:38
  SPEAKER_01: No.
• 8:39
  SPEAKER_00: The passport was getting delivered, and obviously that passport got intercepted and picked up in the mail, and then used the passport to get a phone.
• 8:50
  SPEAKER_00: Wow.
• 8:50
  SPEAKER_00: Offline.
• 8:51
  SPEAKER_00: Yeah.
• 8:52
  SPEAKER_01: Wow.
• 8:53
  SPEAKER_01: That's that's crazy.
• 8:54
  SPEAKER_01: Yeah.
• 8:55
  SPEAKER_01: Like I remember back, back, back in the day when I was super young, and I had this boyfriend, Dodger boyfriend, and he we broke up and he went and he racked up a lot of debt under my name.
• 9:04
  SPEAKER_01: And I didn't know that until I received a call saying, Hey, you need to make payments for this camera.
• 9:09
  SPEAKER_01: I think he bought a camera.
• 9:10
  SPEAKER_01: He was into photography.
• 9:11
  SPEAKER_01: Yeah.
• 9:11
  SPEAKER_01: The boy.
• 9:12
  SPEAKER_01: And I was like, what camera?
• 9:13
  SPEAKER_01: What are you talking about?
• 9:14
  SPEAKER_01: So yeah, he went and got debt under my name too.
• 9:16
  SPEAKER_01: And to me, I just remembered the story.
• 9:18
  SPEAKER_01: You know, I was like, oh, this is weird.
• 9:20
  SPEAKER_01: And I had to dispute it too.
• 9:21
  SPEAKER_01: So, guys, don't be gullible.
• 9:23
  SPEAKER_01: You can dispute the debt if it's been wrongly loaded.
• 9:27
  SPEAKER_00: Yes, and if you believe there's an error or it's been wrongly loaded or something, dispute it.
• 9:32
  SPEAKER_01: Yeah, absolutely.
• 9:33
  SPEAKER_00: If anything can be disputed.
• 9:34
  SPEAKER_01: So couldn't you tell me as we wrap up, can these people buy the house?
• 9:39
  SPEAKER_01: Yes.
• 9:41
  SPEAKER_01: Awesome.
• 9:42
  SPEAKER_01: Awesome.
• 9:42
  SPEAKER_01: Take it.
• 9:43
  SPEAKER_01: That's what we want to hear.
• 9:44
  SPEAKER_01: So thank you so much and up to the next one.
• 9:46
  SPEAKER_01: See ya.
• 9:47
  SPEAKER_01: See ya.
• 9:48
  SPEAKER_01: Bye.