Selling debts and CRAs

DropDebtFred

Help!

Around 2004, I defaulted on my various accounts with Lloyds, for current accounts and credit card.

I've had very little to do with any of the various agencies that have tried to collect this. I was hoping they would become statute barred very soon.

However, Lloyds have sold on the debts. I have noticed on my credit reports that the new 'owners' of the debts have also now added defaults to my report.

Is there anything I can do about this?

downnotout

Someone else will be along shortly to advise better, but I am sure that you can only have one default registered for each debt.

fermi

One entry per debt is allowed on your credit report.

If the debt is sold, then the seller and buyer have to agree who's name the entry will go in.

If the buyer takes it over and puts it in their name then the original entry should be removed. The buyer cannot change the default date though. That must remain the same as the original.

Does this mean you have 2 now for the same debt?

DropDebtFred

fermi wrote: »

One entry per debt is allowed on your credit report.

If the debt is sold, then the seller and buyer have to agree who's name the entry will go in.

If the buyer takes it over and puts it in their name then the original entry should be removed. The buyer cannot change the default date though. That must remain the same as the original.

Does this mean you have 2 now for the same debt?

Yes, two entrys for the same amounts, at different dates, firstly in 2004 and now 2010.

Thanks! I was hoping this would be the case. Would someone help me with the correct method for getting the latter entries removed?

Cheers!

DarkConvict

Page 19 onwards - http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Basically, you tell the credit reference agency as they already know the rules, default dates can't change and only one is allowed.
if they refuse, which they can, you notify the owner of the default.
If the default owners do not correct it, take it to the ICO who will force a change to be made in line with data protection act, also maybe worth bringing in the OFT to investigate as they will confirm what the default dates must be.

Just remember if you acknowledge the debt, you reset the 6 year clock if 6 years has not already passed!

fermi

You need to go through the procedure here:

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Page 19 onwards - Q "I have my credit reference file but some of the information is wrong. What can I do?"

DropDebtFred

DarkConvict wrote: »

Page 19 onwards - http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/credit_explained_leaflet_2005.pdf

Basically, you tell the credit reference agency as they already know the rules, default dates can't change and only one is allowed.
if they refuse, which they can, you notify the owner of the default.
If the default owners do not correct it, take it to the ICO who will force a change to be made in line with data protection act, also maybe worth bringing in the OFT to investigate as they will confirm what the default dates must be.

Just remember if you acknowledge the debt, you reset the 6 year clock if 6 years has not already passed!

Hmmm ... the true default date is 2004 ... if I acknowledge the debt, and get my report corrected, surely, my report should be clear at the end of the year?

downnotout

What was the exact original date of the original default?
As others have indicated if it falls over the 6 year mark it could be statute barred, so long as you have not made a payment or acknowledged the debt since that date. If you acknowledge the debt before hand you will give the DCA a get out of jail free card, and reset the 6 years.

fermi

For reference:

From: Technical Guidance Note - Filing defaults with credit reference agencies

The ‘sale’ or assignment of debts on defaulted accounts

52 When the rights to a debt are sold to a third party, the lender has to make sure the records with the credit reference agency are accurate, up to date and adequate. If they want information about the debts to continue on the credit reference file they will need to come to an agreement with the purchaser about who is to be responsible for this.

53 If the purchaser agrees to take control of the record, the customer should be informed that the debt has been sold or assigned and to whom. The credit reference agency file should be changed to show the name of the purchaser and that the rights to the debt have been sold or assigned.

The purchaser should then make sure the record is kept up to date including changes to the amount still owed. The purchase should not affect how long the record is kept. It should be removed six years after the default.

54 Where the purchaser of the debt does not agree to take control of the record, the original lender, and at least in part the credit reference agency, will remain responsible if the original record is kept on the file. When the debt is sold or assigned, the customer will no longer owe any money to the original lender. If the record is not removed, the sale or assignment should be recorded and the balance should be shown as zero. The customer should still be told who the debt has been sold or assigned to.

Jesthar

DropDebtFred wrote: »

Hmmm ... the true default date is 2004 ... if I acknowledge the debt, and get my report corrected, surely, my report should be clear at the end of the year?

If you acknowledge the debt now and the six years required for statute barred has not expired, then the debt is active for another six years from when you acknowledged it...

fermi

Quite possibly the thing to do is hang on to the credit reports you have until the original defaults have fallen off. That would be a certain 6 years then.

Then you can challenge the newly registered defaults.