Credit Report Help

katlenevo

Hi i have a default on my credit score from a credit card company (i am currently in discussions with them), and today i ahve been alerted that a company called cahot finance have put another default on my credit report for exactly the same amount?
Can two different companys default you for the same debt?

Please help all comments will be greatly appreciated. Thanks Kat

Tixy

If the original creditor sell the debt on then they will often remove their entry on your credit file and the debt collection agency will add on an indentical record in their name with the same default date and amount. So if you look at your report you should see that the credit card company entry no longer appears.

katlenevo

HI no they both appear but the new one has a default date of this year and the original one has a default date of two years ago?? Thanks Kat

Tixy

When a debt is sold the original creditors and the debt collector must decide between them who will take over responsibility for updating your credit file. Sometimes it stays with the original creditor sometimes it passess to the debt collector.

But the debt should certainly not appear twice on your credit file. If the debt collector do start reporting it your original creditor must remove their entry and the new entry must have the original default date on it.

You'll need to raise a dispute - if the debt collector haven't been in touch yet then I would write to the creditor. Presumably you are certain this is the same account and not just a co-incidence that the default is the same amount? ie is all the other data aside from the default the same?

Will just fetch a link to the ICO guidance on this issue......

Tixy

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

Quote:
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.