Two defaults for the same account?

StrangelyBrown

I have two defaults showing on my credit record for the same account.

Firstly, let me say I'm not disputing that I defaulted. Whilst I do respect the opinion of those who only live by "pay what you owe", I'm asking this purely from the perspective of "what's most beneficial for ME"!

The original debt was with Barclaycard which shows as a 'settled' default on my record.

However, they evidently sold the debt to Lowell Portfolio who have also registered a default on my account - the exact same amount, exact same default date but it is showing the outstanding balance instead of 'settled'.

So my first question is - is this allowed/normal? Surely I should only have one default for one original debt? Else they could sell a debt on several times in the 6 years and it'd look really bad.

My second question is - how long should they have left it before registering a default?

I ask because I stopped using the card (and making payments...) at least three years before the date of the default!
I know a default's not a good thing but I'd actually rather they registered it sooner. Not only does it mean it'll stay on my record for a lot longer now, but it also misrepresents the fact I defaulted over 4 years ago, not just last year.

So I'm in a quandary - if I ask them to amend the default to the correct date I defaulted then it would mean the debt is almost statute-barred and the default will 'drop off' my record soonish. But... in doing so I'll have to acknowledge the debt and the 6 year clock will start again!

Advice please!

Tixy

You should only have 1 default showing.

When a debt is passed to a debt collector the creditor and DCA decide between them whether the creditor will continue to report to the credit ref agencies, or if the DCA will now report instead.

Lowell should not register their entry unless bc had removed theirs first.

With regards to when a default should be registered - the ICO guidelines say that a default should usually be registered when a debtor falls between 3 and 6months behind with the account.

The default date does not affect at all the date a debt becomes statute barred. Regardless of the default date a debt becomes statute barred 6years after you last paid the debt, or acknowledged it in writing, providing they don't commence court action before then.

But you are right about the dilemma - you could certainly get one of the records removed by writing to complain, and may be able to get the default date changed, but both would be very hard to achieve without acknowledging the debt.

So you either put up with 2 defaults on file for another 5years and hope that they don't take court action so it becomes statute barred in a couple of years or
you write and get 1 default removed, try to get the default date changed so your credit file will be clean within a shorter time frame, but then accept that they'll start chasing again and you'll have restarted the clock, and given them longer to decide to take court action.

StrangelyBrown

Great answer, Tixy.

So from my perspective, the 'best' course of action might be to:

• wait a year or two with incorrect data (as it will then be statute-barred regardless of their alleged default date)
• once it's barred, then get the dates and duplicate default corrected (as by then it can't be then un-barred, as it were)
• wait for the corrected defaults to drop off