When a defaulted loan is sold on, should it be marked as settled?

Hopkino

Having received a loan from HSBC in 2009 I unfortunately defaulted in March. This Loan was sold on to Metropolitan, a member of the HSBC Group, to whom monthly agreed repayments are made.
Checking my credit file religiously I note that I am recorded as being more than 8 payments late. This 8 payments late statement on my credit file refers to the originating loan, and not the current repayment agreement with metropolitan.

Having conversed with HSBC, they have informed me my accounts with them are settled and closed. Metropolitan state that my account remains with HSBC. My credit file shows consistently more than 8 payments late since the default date, irrespective of making payments to Metropolitan.

No one is willing to correct this with the Credit reference agencies and as such my credit file continues to reflect a poor history.
I have made every attempt to adjust my credit rating, and fortunately I am on the road to repair.

My confusion lies as this:
If an account is defaulted and then sold on, should the account be listed as settled?

I was 8 payments late on the originating debt, but not the "new" debt which was passed to metropolitan (never late & no missed payments).
I am tired at making such conscientious efforts to repair my credit file, when it continues to affect me. I am aware that va default will remain on my credit history for 6 years, but dispute that a record of 8 payments late is recorded to date.

fermi

If it's with Metropolitan then it hasn't been sold on. They are just HSBC using a different name.

Once a loan defaults, then it stays at status "8" permanently until the debt is settled by being paid off by you. No more monthly payment status markers are recorded apart from that, as the "8" means that you have broken the credit agreement.

Just because you are now making monthly payments against the defaulted debt, doesn't "unbreak" the credit agreement, so the status remains at 8.

Repayment arrangements after a default are simply not recorded in status codes. That is the way it works. There is nothing to be concerned about that it's appearing like that. It's normal. Anyone checking your file will know what it actually means.

The only change on your file you will now see regarding payments is that the outstanding debt recorded will go down. Then eventually a settled marker added when it has been paid off.

iolanthe07

my credit file continues to reflect a poor history.

This is hard to say, but it is because you do have a poor credit history. The credit file reflects the facts, no more, no less, so that a potential lender can view your history and assess the risk of lending to you. This does bear heavily on conscientious people like you who are doing their best, but it will disappear after 6 years.

KingElvis

Basically it's an accurate picture of you, your finances and your ability to repay what you borrow.

redpete

Hopkino wrote: »

If an account is defaulted and then sold on, should the account be listed as settled?

No. The record is meant to reflect how you have performed in paying back money you owe, not how the lender has performed in writing off or otherwise dealing with their loan. In this case you have not settled the account.

Hopkino

Insightful stuff, many thanks folks.