Default Removal

2e1var

Just cleaning up my credit file and being quite successful but I'm a bit stuck with an old O2 account, now sold to Lowell Group. Be great if you could answer a few questions.

The entry under O2 on my file is green and settled, Lowell is in default.

O2 never defaulted the account, although I'm sure they sent letters at the time, can Lowell default it as O2 didn't ?

The account shows as settled 3/10/07 from O2 yet the default from Lowell is 1/5/08, should they not match ?

The account was opened in 2004, are there any legal changes since then that would mean they can't register a default/ or couldn't at the time ?

Does the fact it's not covered by the consumer credit act help at all ?

If I start paying money to Lowell are they obliged to remove the default as I'm paying it off ? There website suggests they will, anyone have experience of this ?

If I pay off O2 directly will Lowell have to remove the default ?

Thanks, by the way it's £300, I owe it and I'll pay it, just want the default off

Tixy

There should not be 2 entries on your file for this account (or any account), either the creditor removes their entry entirely and the DCA puts theirs on. Or the creditor keeps their account visible, and keep it up to date, and the DCA does not put an entry on.

A DCA can default an account if the original creditor did not, though its unusual for the creditor not to issue a default before then. But there is certainly no way it should be that much after they took over the account. By definition the account was defaulted at the very latest when sold on, as the agreement between you and the creditor had certainly irrevocably broken down.

Its rare they'll remove a default when you start repaying.

Its rare they'll remove a default if you pay up in a lump sum, and they won't do it automatically - but it can be possible to negotiate with them to remove it as part of whatever deal you agree with them - you'll need that in writing before you pay up, otherwise chances are they'll not stick to what you agree.

Maybe if you can afford to you could offer a reduced full & final settlemt in writing for x amount adding in that they will remove the default along with all the usual conditions (see here - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers)

Service agreements can be defaulted the same as consumer credit agreements.