Can a debt collection agency give you a default as well as the original lender?

witpig

Hi!

I have an old debt with Barclaycard which was sold to HFO. Barclaycard marked it as a default on my credit file which is due to drop off in two years.

I stupidly started paying HFO some monthly payments a couple of months ago then stopped as they tricked me into believing they had halved the debt.

Anyway, now they're threatening court action which I can deal with. I can prevent a CCJ appearing on my credit file by paying it off within a month, but I'm more worried about HFO applying a default.

Can they do that when I already have one from Barclaycard?

fermi

witpig wrote: »

Can they do that when I already have one from Barclaycard?

No..........................................

witpig

lol! Well I do like concise answers! Thanks but I've posted on yahoo answers too (that fountain of all knowledge) and I'm getting a mixed bag of answers. Is anyone able to explain why HFO can't apply a default for a debt that already has one applied?

Cheers

LilacPixie

one debt one default. You can't default on samething twice. I suggest printing out your credit file just in case though

fermi

witpig wrote: »

lol! Well I do like concise answers! Thanks but I've posted on yahoo answers too (that fountain of all knowledge) and I'm getting a mixed bag of answers. Is anyone able to explain why HFO can't apply a default for a debt that already has one applied?

Cheers

Yahoo answers is about the worst place you could ask. :rotfl:t

The Office of Information Commisioner regulates what is fair to put on your credit files. They spedify that all detauls of an account must be removed 6 years after the original default. If a creditor/DCA doesn't do that then you can take action against them

witpig

Thanks peeps, I'm feeling a bit better now :T

robpw2

but i have had defaults of debt collection agencies for money thats already defaulted i have checked my report

fermi

robpw2 wrote: »

but i have had defaults of debt collection agencies for money thats already defaulted i have checked my report

Then complain and get them removed.

A DCA can take over the CRA report record, but they must not record a newer default than the original.

robpw2

fermi wrote: »

Then complain and get them removed.

A DCA can take over the CRA report record, but they must not record a newer default than the original.

thanks i never new this because as i say i checked and have had a defualt of lowell finance and the original debt that is defaulted is still showing , so who do i complain to because i find trying to do anything with lowell usually ends up with them barraging me with letters everyday that have nothing to do with my query

fermi

robpw2 wrote: »

thanks i never new this because as i say i checked and have had a defualt of lowell finance and the original debt that is defaulted is still showing , so who do i complain to because i find trying to do anything with lowell usually ends up with them barraging me with letters everyday that have nothing to do with my query

Initially to Lowell.

If they won't remove the extra default, then you complain to the Information Commissioner.

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.