Defaults on credit file

yellowplum

Sometime ago a friend was unable to pay his debts and took advice in how to deal with them.

After much time the status ended up being that some where being paid and some where not.

Around 5 years have now passed, and I advised him to do a search on his credit file to see what was showing.

Unsurprisingly all three showed different data sets, though what caught my eye was the information that Equifax and Call Credit displayed.

I presume at some point the debts had been sold to third parties; Cabot Finance, Arrow Global, Aktiv Kapital and Capquest Investments from the original suppliers.

My concern was the date of default information, I have read on here that you can't have the information on a credit file twice, it is either the original supplier or the third party that the debt was sold to must display the information.

While this isn't a major concern in this instance (only with one) my concern arises on the following points:

1. If a debt is Defaulted by the original supplier once, it cannot be Defaulted again when sold with a different date?

2. If the debt was sold what date should be published on the credit file as the Default date?

3. If payments are made towards a card and then cease what default date should be published, original when a lesser amount of the debt was paid or the date when the payments stopped completely?

fermi

1. Correct.

2. The original default date.

See paragraphs 52 - 54 of

https://forums.moneysavingexpert.com/discussion/3172602

3. See the above link for detailed explanation.

Can depend on many factors. There are some clear indicators of a "default" such that one should be filed if one is going to be. For example, passed to a debt collector, a formal default notice under the Consumer Credit is issued and not complied with. Plus short of that, a more general guideline that this should be done within 6 months of any "breakdown" of the relationship between creditor and debtor.

For a limited numbers of things you can pin down a specific date, but for most is a more subjective assessment of when a "breakdown" occurred. Particularly when you have entered into a (semi) formal payment arrangement with the lender for some time.