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: Always contact the Lender (e.g., the bank) first. CRAs cannot change data without the lender's permission.
• 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: Lenders have 28 days to fix errors. Markers stay for 6 years if not removed.
• 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

"Lenders own the data; CRAs just display it." If Barclays reports you were late, Experian cannot just "delete it" because you ask them. Experian has to ask Barclays, "Is this true?". If Barclays says "Yes", it stays. This is why disputing via the lender is faster.

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"?

There is no statutory law, but usually:

• 1-14 Days Late: Often just a late fee, no CRA marker.
• 30+ Days Late: Reported to CRA. (Standard industry practice). See our guide: Missed Payment vs Arrears.

Retention Period

• Late Markers: 6 Years.
• Defaults: 6 Years (usually registered after 3-6 months arrears).

Timelines for Disputes

1. Lender Response: Should resolve within 28 days.
2. CRA Investigation: If you dispute via CRA, they have 28 days to check with the lender.
3. Financial Ombudsman: You can escalate 8 weeks after complaining to the lender.

"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. To remove a CCJ, you need a "Certificate of Satisfaction" or a court set-aside.

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. Wait 28 Days: If they agree, they update 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.

Who do I contact first?

The Lender. It is faster.

How much does a dispute cost?

£0. It is a statutory right.

Can I force them to remove it?

Only if it is factually wrong. If it is accurate, you cannot force removal.

Can the ICO help?

The ICO deals with accuracy. If a bank refuses to fix a proven error, the ICO can intervene. They cannot decide if you "owe" the money, only if the data is correct.

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