Debt sold on, Default on credit score who is responsible for updating

crazyllama

Hallo!!

I have a default on my credit score which shows as a debt to the halifax but they have now sold the debt to lowell but my credit report still shows that the debt is owed by Halifax and the full amount outstanding.

I am in the process of writing to the halifax in a bid to have the default completely removed as I do not feel they followed the correct process in respect of serving a default notice on me.

My question is that should the default be valid and Halifax are found to have followed the correct process. Who is responsible for updating my credit report to show that the debt is now managed by Lowell and I am making payments monthly. I have spoken to Lowell about this and they insist its Halifax but I got fobbed off when I went into the branch...

fermi

This is what should be done.

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.

Tixy

When a debt is sold on there are 2 options that can happen.

1 - the lender removes their entry from your credit file and the debt colllection agency adds an identical one in their name and then takes over reporting the data - and reducing the outstanding balance etc.

2 - the lender continues to be repsonsible for reporting to your credit file. The collection agency notifies them any payments and they then update this on your credit file (eventually).

Both of those options are considered acceptable and both do happen.

What shouldn't happen is that the file is not updated at all - if nobody is updating your file I would write a letter of complaint to lowell (as that is who you are paying) but also copy the letter to halifax.

crazyllama

Thats Brilliant. Thanks!!!

I think Im best getting another letter in the post to the Halifax quoting that first paragraph and mentioning my disgust at the fact their staff fobbed me off!!

Cheers

fermi

That's the thing.

It's Hellifax/Lowells responsibility to sort it out between them. Not leave it dangling like this with both parties passing the buck.

crazyllama

!! Yeah I kind of got the impression my phone calls / visiting in branch with halifax that their philosophy is that because they have sold the debt its not their problem..... As for Lowell their about as much use as a chocolate fireguard.