Credit Report Status Defaulted

clearMyname

Hello, my wife has an entry on her Credit Report listed "Loan from Hillesden Securities / XXXXXXXXXX"

It says "Status Defaulted" and "Updated 03/03/2011".

I know Hillesden Securities is Direct Legal and Collections. We are paying them every month as agreed. This was previously from a loan we borrowed from Abbey National (£12k).

Questions: Is it correct for the Status to read Defaulted even though we are paying them as agreed? Should they be updating it? Also, is there any chance of getting this status removed as it is causing problems for us?

Many thanks.

fermi

Did you default? Presumably you did?

If so, then the status stays as defaulted, even if you later come to an agreement to pay it off.

If you payment are reducing the outstanding balance then they should be updating that.

clearMyname

Thanks fermi. I am not 100% we ever defaulted with the debt collection agency - but the original lender yes. I have looked through the papers and find no default letter. Seems a shame to be victimised for ever more.

fermi

clearMyname wrote: »

Thanks fermi. I am not 100% we ever defaulted with the debt collection agency - but the original lender yes.

In that case, the default is valid.

What normally happens is that when the debt is sold on to collectors, the default on your credit report is changed over to show their name rather than the original creditor. As long as they don't change the date of the original default when they do that, I'm afraid it's legitimate.

A pain to have it I know...