Default notices and DCAs

Madison

If a creditor sells a debt to a DCA, do they have to issue you with a default notice? A couple of my creditors did this after several years of being in a DMP but the first I knew about it was when the DCA contacted me and I didn't receive anything from the original lender to say they were selling it on.

Tixy

Ususally a default notice is issued well before a debt is sold on. Typically a default notice is issued after 3-6months of no or low repayments.

They can sell the debt on at any point - usually 12m - 2years would be 'typical'. Ideally they should write to tell you the debt has been sold on.

If you haven't been informed a debt has been sold on and a DCA contacts you then you should the prove it letter to the DCA (so that they can prove they have a right to collect the debt, usually by showing you a notice of assignment) - http://forums.moneysavingexpert.com/showpost.html?p=11570893&postcount=2

Madison

Thanks - never thought of sending that letter as they had all the info on my former account and the outstanding balance was what they said it was. I just forwarded it to Payplan and they transferred the payments so I assume they must have asked them to prove it. However, neither of those creditors issued me with a default notice and it was almost four years after the original plan started that they sold it on. I just want to clarify that they can't record me as having defaulted unless they notify me of this.

Tixy

They shouldn't but it does happen. If you check your credit report and find a default has been issued you could follow these steps to get them to prove they sent you a notice or remove the default - http://forums.moneysavingexpert.com/showthread.html?p=26867849#post26867849

One word of warning though - if they have and you manage to get it removed they could then send out the default notice and then send a default now which would mean its on your credit report for even longer (as it would be 6years from the new date not the original date) - just something to consider.

Madison

Thanks again, I don't want to take out a free on-line check until all the accounts are cleared - I just hope there isn't a nasty surprise on my file as there were only two defaults on it when I checked this time last year and they were due to clear in November.

Tixy

Dont forget you can always buy the statutory report for £2, depending on how long until you expect all accounts to be cleared I'd say its worth getting it every 12-18months just to keep an eye on whats on it.

Madison

I've only three more payments to go (two after Friday) so I'll take out an Equifax one in May but I also intend to use the statutory report on an annual basis just to check what's what.