Default Query

r1danny

Hi, Can someone give me some advice on a default please?
I recently applied for a credit card which was refused. My bank told me it was because I was in arrears with "an account" and would need to get a copy of my credit report for more information.
About 8 years ago, I defaulted on an overdraft for £732 with HBoS.
About 3 years ago, a company called Lowell Group contacted me and I agreed to pay the whole lot back at £25 per month...which has now been paid off.
My credit report shows me with a Lowell Group "Default" that is "Satisfied". Against each month is a red circle with an 8 in it, whcih I understand means at least 3 months in arrears. The default date is Sept 2007.
Now firstly, the debt was never with Lowell Group. Secondly, I haven´t defaulted with them. Payment were made each month by direct debit. I have spoken to them, and they just said the default was put on by HBoS and they can´t remove it. What can I do?
Any help appreciated!

fermi

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

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.

Lowells are the purchaser, so were entitled to have any default recorded by HBOS changed into their name.

r1danny

OK, Many thanks, I understand that now.
But why is it still saying that I´m more than three months in arrears (red circle with an 8) when the debt has been satisfied?
As the deafult date is stated as 2007, does that mean it will come off next year?

fermi

An 8 actually means defaulted. Once it is, it stays at that.

Yes, if the default date is 2007 then the default, account history, and all details of the account will be removed next year.