19 Jun 2024

Scamwatch: 'Help! Scammers have scuppered my mortgage application'

Which? helps a scam victim to clean up their credit report

Dear Which?,

Last year I was tricked by a DPD scam delivery text.

In the months that followed, phone contracts were obtained fraudulently in my name, which I reported.

Then in November, I got a default notice from musicMagpie, a website for buying and trading in tech items.

I contacted musicMagpie, but it requested an Action Fraud crime reference number. Action Fraud told me I wasn’t able to report the use of my identity as a crime. I relayed this to musicMagpie.

Then in March my mortgage application was refused because of a default notice from musicMagpie on my TransUnion credit report.

I contacted Action Fraud again and this time I was given a reference number, which I shared with musicMagpie. This was passed to its fraud department, and I was told to expect a response within 14 days. But I don’t have 14 days.

My mortgage offer hangs in the balance.

Name Supplied, London

Faye Lipson, Which? senior researcher, says:

We contacted musicMagpie, highlighting the urgency of the situation. To its credit, it acted swiftly; the fraud was removed from your credit report the next day.

musicMagpie said: ‘While we empathise with this individual’s situation, we were unable to act until they provided us with a crime reference number or Action Fraud number, which we asked for in November 2023, and continued to request until it was eventually received by us in March 2024.

‘Once in receipt of the Action Fraud number, our team worked incredibly hard to get the transaction removed from the individual’s record as quickly as possible. This was achieved within 48 hours, which is far quicker than the 14 days that is standard.

‘We have also written the debt off, which has cost us more than £2,000. We are pleased to have resolved this matter and would urge all consumers to be extremely careful when sharing their personal information, especially with parties purporting to be well-known businesses such as couriers.’

You’ve been able to share this resolution with your mortgage broker and your application was approved. Good luck and we wish you well with the move.

Need to know

Credit reports allow lenders to confirm your identity and whether you're a reliable borrower.
You should keep a close eye on your finances and credit report. Any unauthorised transactions should be reported to your bank immediately and inaccuracies on your credit file can be disputed with the reporting agency and with the company who provided the information (the lender).
If the lender refuses to remove the error, you can add a 'notice of correction' to your file to explain what the error is.
If you've become a victim of a scam, you should report it to Action Fraud, or the police if you live in Scotland. Once you have reported the scam, you should be given a crime reference number.