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  • FIRST POST
    • jimmyshack
    • By jimmyshack 3rd Oct 17, 10:00 AM
    • 3Posts
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    jimmyshack
    Default Questions
    • #1
    • 3rd Oct 17, 10:00 AM
    Default Questions 3rd Oct 17 at 10:00 AM
    Hi all, I've often mined this forum for knowledge but this is my first time posting. I've got a query about a few defaults I have on my credit file.

    In total I have 8 however the newest one is 2 years old so i've been keeping my nose clean for a while now.

    The question i have; two of the defaults are related to the same debt a Barclaycard, dated 4/8/15. On the barclaycard entry it states that the debt has been transferred to a collection agency (who i've recently paid off) however the default date is recorded on the collection agency entry as well.

    I've read that a default can only appear once per debt but also that the default can be transferred into the name of the collection agency that has bought the debt. Does this scenario classify as a duplicate or correct recording?

    Also i've made big inroads into paying off all these creditors, in the last month i've paid off about £6k with the rest (£5k) due to be paid in the next couple of months. With the defaults all being quite aged how do you think future creditors will look at them when it comes to a lending decision, say for car finance in another 6 months? I know it's a tough question to answer, however i'd appreciate a bit of a steer
Page 1
    • zx81
    • By zx81 3rd Oct 17, 10:03 AM
    • 13,683 Posts
    • 14,151 Thanks
    zx81
    • #2
    • 3rd Oct 17, 10:03 AM
    • #2
    • 3rd Oct 17, 10:03 AM
    With 8 defaults, I'd be looking for the majority of them to drop off before thinking about apply for further credit.
    • jimmyshack
    • By jimmyshack 3rd Oct 17, 10:20 AM
    • 3 Posts
    • 0 Thanks
    jimmyshack
    • #3
    • 3rd Oct 17, 10:20 AM
    • #3
    • 3rd Oct 17, 10:20 AM
    Thanks for the quick reply. I've just done a bit more work on my credit report and it's actually 6 with 4 due to drop off in 2019. the 2 year old one is to be removed due to an error by npower. There's, what looks like, a couple of duplicates which i'm not sure whether i should be challenging as per my main question.
  • National Debtline
    • #4
    • 3rd Oct 17, 11:45 AM
    • #4
    • 3rd Oct 17, 11:45 AM
    Hi jimmyshack

    When a debt collection agency (DCA) buys a debt they are allowed to add a second entry on to your credit file for the debt. They can also register a default in their name, but they must use the same date the original creditor registered the default.

    Experian have confirmed that it is only the second entry of the debt recorded by the DCA that will be taken into account when looking at your credit rating. Both entries (original creditor and DCA) will drop off your credit report 6 years after the date of the default.

    Every lender has their own credit scoring system, and your credit history (including defaults) is one factor they will take into account. Having said that, the older the defaults get, the less impact they are likely to have.

    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • jimmyshack
    • By jimmyshack 4th Oct 17, 1:30 PM
    • 3 Posts
    • 0 Thanks
    jimmyshack
    • #5
    • 4th Oct 17, 1:30 PM
    • #5
    • 4th Oct 17, 1:30 PM
    Thanks Susie!

    Appreciate the explanation, makes sense. Now to pay off the rest and wait to see how things look on my credit file in 6 months time.
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