How to Dispute an Incorrect Late Payment Marker on Your UK Credit File

A late payment marker is a record added to a consumer's credit file when a lender reports that a payment was not made on time. In the UK, three main Credit Reference Agencies (CRAs) — Equifax, Experian, and TransUnion — hold this information.

Sometimes, a late payment marker is wrong. The payment may have been made on time, or the account might be fraudulent. When that happens, you have a structured process for challenging the entry.

• Who to Contact: Contact the lender and/or the CRA holding the error. The lender can correct its source data; the CRA also has responsibilities for the accuracy of its records.
• The Check: If the marker is Incorrect (a genuine error), it must be removed. If it is Accurate (you missed it, even for a good reason), it generally cannot be removed.
• Timeline: A data-rectification request normally requires a response within one calendar month, with a possible two-month extension for complexity. A CRA dispute under section 159 has a separate 28-day response process.
• Escalation: If the lender refuses to fix an error, you can go to the Financial Ombudsman Service (FOS) or ICO.

The Golden Rule of Disputes

Both the data supplier and the CRA have responsibilities. A CRA will usually check a lender-supplied entry with that lender. Its response is evidence to investigate, not an absolute veto over rectification. Provide statements and dates, and ask both organisations to investigate any discrepancy.

The Legal Framework

• Data Protection Act 2018: Data must be "accurate".
• Consumer Credit Act 1974: Gives right to access files.
• FCA Rules (CONC/DISP): Regulates how firms handle complaints (8 weeks max).

When is it "Late"?

A payment can be late as soon as its contractual due date is missed. Reporting cycles and provider policies differ; there is no guaranteed 14- or 30-day grace period before a credit-file entry. See our guide: Missed Payment vs Arrears.

Retention Period

• Late-payment history: May remain with the account record; closed-account records are commonly retained for six years after closure.
• Defaults: 6 Years (usually registered after 3-6 months arrears).

Timelines for Disputes

1. Rectification response: Normally one calendar month; a complex request can take up to two extra months if the organisation explains the extension within the first month.
2. Section 159 CRA dispute: The CRA must respond within 28 days, stating whether it removed, amended or left the entry unchanged. This is not a guarantee of deletion.
3. Financial Ombudsman: For most credit complaints, you can normally refer to FOS after a final response or once eight weeks have passed without one; eligibility and time limits apply.

"I had a good reason"

Under UK rules, the credit file reflects factual history. If you were in hospital and missed a payment, the marker is factually accurate. Lenders are not obliged to remove accurate markers, though they might as a gesture of goodwill.

• Solution: Add a Notice of Correction explaining the illness.

"Duplicate Entries"

If a debt is sold to a collector (e.g., Lowell), you typically see two entries:

1. Original Lender (Marked "Satisfied" or "Sold").
2. Debt Collector (Active). This is allowed, provided the dates match and you aren't penalised twice. The drop-off date must remain 6 years from the original default.

• Fraud: If the account isn't yours, different rules apply. See Someone Took Credit in Your Name.
• CCJs: These are court records, not lender records. Payment in full within one month can lead to cancellation when the court is notified with evidence; a set-aside is another route where justified. Payment later normally marks it satisfied, not removed. A paid certificate is not always necessary.

Step-by-Step Dispute Process

1. Get Proof: Find the bank statement showing you paid on time.
2. Contact Lender: Email their Complaints team. Attach the proof. Ask for "Data rectification under GDPR".
3. Track the response date: Record when the rectification request was received and any lawful extension; ask when agreed corrections will be sent to the CRAs.
4. CRA Dispute: If the lender ignores you, raise a "Notice of Dispute" with Experian/Equifax/TransUnion. They will flag the entry as "Disputed" while they investigate.
5. Ombudsman: If the lender insists they are right (and you disagree), escalate to the FOS.

Worrying about a default instead? Read How Long Defaults Stay on Your Credit File.

• Consumer Credit Act 1974 section 159

• ICO: correcting personal data

This guide is based on UK primary legislation, regulator handbooks, and official guidance. The following sources cover the rules described above:

• Information Commissioner's Office
• Experian UK
• Financial Ombudsman Service
• Data Protection Act 2018
• Equifax UK

Free, impartial debt advice is available from MoneyHelper, StepChange, and Citizens Advice.