How to remove late payments from credit report

How I Successfully Disputed Late Payment Issues: A Step-by-Step Guide

Late payments. They’re the kind of thing that can keep you up at night, especially when you start imagining the impact they’ll have on your credit report and your financial future. I found myself in this very situation not too long ago, and I can tell you—it wasn’t easy. It’s frustrating when you’ve done everything right, but a mistake—either on your part or your lender’s—leads to a late payment that could mess up your credit.

At the time I was in the process of buying our first home and I wasn’t even aware I had these late payments on my profile, I was rejected for multiple mortgages as a result of it and it was extremely frustrating to say the least.

But here’s the thing: I got through it. And the process of disputing the late payment wasn’t as complicated as I first thought. In fact, by taking the right steps, I was able to get the issue resolved quickly and efficiently. I want to share my experience with you because I know how stressful these situations can be, and I hope that by following these steps, you’ll be able to handle your late payment disputes with more confidence and less stress.

Step 1: Understand the Cause of the Late Payment

For me, the issue was simple but frustrating. I had made sure to set up my payments on direct debts to ensure I didn’t miss payments, however I moved jobs, my payment date changed and I dutifully called my lender so they could change my payment date to align with when I received my salary, but the lender had failed to adjust the direct debit date and a few months after a payment was denied as there weren’t sufficient fund in the account, because they didn’t change the date.

This led to a “late payment” marker on my record. It wasn’t my mistake—I had followed all the necessary steps, but the lender didn’t update their system to reflect my new payment date.

Not all late payments are caused by a lender’s error, of course. Maybe you forgot to pay or had a temporary financial hiccup. In any case, identifying the cause of the late payment is key, because it will guide your next steps. It’s also important to know how to approach each situation based on what happened on your end.

Once I realized that the issue wasn’t on my end, I felt more confident moving forward and disputing the late payment. It’s important to know exactly why the payment was marked as late so you can address it accordingly.

Step 2: Contact the Right People

Initially, I made the mistake of calling customer service in hopes of getting the issue resolved. Unfortunately, they couldn’t do much beyond noting my complaint, and their advice was vague. They simply told me they’d log the call and pass it to their supervisors, however ultimately nothing was done.

If you find yourself in a similar situation, always aim to contact the compliance or legal team directly. These teams are generally better equipped to handle disputes and have more authority to act. It took me a long time to understand this. When I escalated the matter, I was able to speak with someone who understood the severity of their failing and had the power to make decisions.

In my case, once I explained that the issue stemmed from their failure to change the direct debit date, they took the matter much more seriously. This is a crucial step—don’t just accept the first answer you get.

Step 3: Write a Clear and Formal Complaint

Next, I learned how important it is to write a formal complaint. It’s easy to get emotional about situations like this, but the more professional and clear you can be, the better. I learned that keeping my letter direct and factual helped get results faster.

Here’s what I included in my complaint letter:

• My Account Details: I made sure to include my name, account number, and contact information.

• A Detailed Description of the Issue: I explained that I had requested a change to the direct debit date, and despite my request, the lender failed to update their records. As a result, the payment was marked as late.

• My Request: I clearly stated that I wanted the late payment removed from my record and requested written confirmation that the matter would be resolved.

• Supporting Evidence: I attached any relevant documentation, including emails showing that I had requested the change in direct debit date and records showing that I had been proactive in managing my account.

• Relevant Laws and Guidelines: To back up my request, I referenced guidelines from regulatory bodies such as the Financial Conduct Authority (FCA), which emphasizes fair treatment of customers, particularly in cases of service failure like mine.

I kept the letter polite but firm, ensuring that I wasn’t just accepting the late payment as a permanent mark on my record.

BTW - If you’d like for a template of my complaint, what laws and regulations I cited and how I would strategise my approach for every situation you can check it out here

Step 4: Request Supporting Information

One thing I didn’t initially realize was that I could request further information from the lender about their processing systems. After I sent the complaint, I asked the lender for:

• Payment Processing Logs: Documentation showing when the payment was processed, and when it should have been.

• Confirmation of the Direct Debit Change: I requested confirmation that my direct debit details had been updated, or evidence that they had not been, as I suspected.

• Customer Service Records: Any logs of my communications regarding the direct debit date change, as this could further support my case.

These requests were entirely reasonable under data protection laws and helped me build a stronger case.

Step 5: Be Persistent

As with many customer service issues, I didn’t get a resolution right away. The lender’s initial response wasn’t helpful, and I had to follow up multiple times. This can be one of the most frustrating aspects of the process, but it’s important to remain persistent.

I kept records of every communication, and when I didn’t hear back within a reasonable time frame, I followed up. After a week, then two weeks, I sent polite but firm emails reminding them of my request. Each time, I reiterated that I expected a resolution based on the facts I had provided.

Step 6: Know When to Escalate

While I didn’t need to escalate my complaint, it’s always useful to know what to do if you’re getting nowhere. If the lender still isn’t addressing your dispute, here are some options:

• File a Complaint with the Financial Ombudsman: If the lender’s customer service or compliance department doesn’t resolve your issue, you can file a complaint with the Financial Ombudsman Service (FOS). This service is independent and can intervene in disputes between consumers and financial companies.

• Consider Legal Action: If the issue remains unresolved and significantly impacts your finances, seeking legal advice might be necessary.

I didn’t need to take it this far, but knowing these options gave me peace of mind.

Final Thoughts

Disputing a late payment can feel like a daunting process, especially when it’s not your fault. But after going through this experience, I can tell you that it’s completely possible to resolve these issues if you take the right approach. By understanding the cause, contacting the right people, being clear in your complaint, and staying persistent, you’ll increase your chances of getting the outcome you want.

If you find yourself in a similar situation, don’t be discouraged. Take action, follow through, and know that you have the tools at your disposal to handle the dispute effectively. I hope this guide helps you navigate the process and feel more confident about resolving your late payment issues.

Remember, you're not alone in this—and I’m happy to share my experience to help you avoid some of the frustrations I faced.

If you have any questions or need more guidance, feel free to reach out. I’m here to help!