Old EGG card default credit problem

timmit

Hi, this is my first post on here, so please be gentle!
I was in financial difficulty 4 years ago, and had a couple of credit cards balance's sold to debt collecting agencies.
I have just cleared one, but the other, an Egg cc debt, is still being paid off via Fredrickson International.
The debt was sold to Fredrickson 4 years ago, and i've been paying it ever since, not missing a single payment. I'm trying to sort my credit rating, which was going well.
Today, i checked my score, and it's dropped 50 points on all 3 agencies. This is due to the above debt now showing(which it hasn't for four years). It's still listed as a debt with Egg, with every month since Fredrickson took it on as a default payment. I now have 44 defaults against me, with a credit card that was sold ages ago.
Is this right? Why is it suddenly showing as a debt with egg again?

Any help would be great.

Thanks, Timmit

Tixy

Hi timmit

Whilst it looks like there are 44 defaults there will actually be just one 'proper' default on the account, this date should be clear on your credit report. The 44 items I think will just be markers to show you are paying less than the original contracted amount back each month.

You will find that the default should drop off your report 6years from the date it was originally entered (which was probably done by egg before they sold it).

As to why it is suddenly showing again I am not sure - did it not appear before at all or was it shown but as a debt to Fredrickson? Have you done anything different recently (such as request the credit agreement) that would have caused fredrickson to return the debt to Egg?

timmit

Hi, thanks for the reply.
I've not done anything i'm aware of to suddenly show this debt.
It showed as a default cc with egg, 4 years back, that was it. No mention of Fredrickson on there i could see.
So it should clear after 6 years? All my issues on my report are the same age, will this make much difference to my rating after 6 years when they 'fall' off? I've made no credit requests since, i imagine this will be bad too.

GeorgeUK

Creditors are looking for proof of a good payment history amongst other things when they consider you for credit so if you don't have a payment history, this can count against you.

Make sure that the date of the actual defaul for the egg account is correct - it should be within 6 months of the first non-payment (breach of the original credit agreement). If this is wrong, you should get the date amended.

After 6 years it will fall off your credit file and cannot be put back on. Not having defaults should improve your credit rating and you will be able to get a creditcard, albeit a high APR one, to make regular payments to and build up your payment history.