Can a debt collection agency reapply a 6 year old loan to my credit report?

101problems

I suggest you repost on the credit file forum as they will know more than I can provide. In a regard you are correct that they should have registered a default long before now but as I said it is a bit of a minefield.
by servicing the debt they haven't filed a default, did you haven't paid them a dime for the last six years registering a default now is wrong and they should fix it however if you have been paying them they should register the default after around 2/3 missed payments

101problems

And there may also be different rules for "co-singing or guarantor"

[Deleted User]

enfield1988 wrote: »

I thought once any debt had gone over 6 years it was removed from your file.

That would make it quite difficult for lenders to know who already had a mortgage.

enfield1988

Deleted_User wrote: »

That would make it quite difficult for lenders to know who already had a mortgage.

Mortgage? This is a loan

[Deleted User]

A mortgage is a type of loan.

fermi

enfield1988 wrote: »

Yes the debt is being repaid the main borrower, however I just want to confirm that by law they have to remove the entry from my credit file?

If there was a default, then yes it should be removed 6 years from the recorded default.

If the debt is not defaulted but has been settled, then it is removed 6 years from the settlement date.

Sounds as if neither of the above apply to this loan, so it is correct that it stays on your report.

If a debt is sold on then the record can be recorded on your credit file in the name of the purchaser from then onwards. Presumably that is why it was removed and then re-added in the new company's name.

enfield1988

One last thing, why didn't they default the account? i was under the impression that once you had not paid at least 3 payments you would get a default.

fermi

Long term secured loans can be an exception to the normal guidelines.

From the ICO techincal guidance from that period.

14 Long-term secured loans

Although long-term, secured loans, such as mortgages, are likely to involve monthly repayments, they are an exception to the general standard. The existence of a secured asset which, if repossessed, will indemnify the lender, and the length of the term involved, distinguish this category from the majority of products. This may mean that the lender is prepared to allow the customer greater latitude if the account gets into difficulties. A lender may decide that, even though one or more of the above indicators has occurred or more than six months has passed without a payment being received, there is no breakdown until they have decided to take possession of the asset. Nevertheless, there are practical problems facing lenders in these circumstances because in some cases, even after court action to gain possession has been taken, a customer will go on to repair the relationship by starting again to pay on a regular basis the contractual sums (or at least an agreed compromise sum that would constitute a variation in payment terms as indicated in paragraphs 17 -23).

If meaningful information is to be reported to credit reference agencies there needs to be a consistent approach by lenders that also needs to take account of the practical problems they face. This is also necessary to treat all customers in this situation fairly. Consequently, a lender should file a default no later than six months after the date of a successful court application to proceed with possession unless

• the customer has made reasonable and agreed arrangements to repay,
• the lender can justify not filing a default on an exceptional basis. For example, the lender is fully informed of the circumstances and knows that payments will start again, or
• the loan has been included in a bankruptcy in which case the default should be filed in accordance with the guidance in paragraphs 47 – 48.

In rare circumstances the court can grant possession on conditions that delay physical repossession for a long period of time, even though the customer is not making an acceptable agreed level of repayment. This is usually on compassionate grounds. In these circumstances the lender should record a default within the six month period of the order date.