Reissue a default after 6 years?

shelley2005

I am in a debt management programme and an advisor told me that a creditor can reissue a default after 6 years if you are still paying them off.

Does anyone know if this is true?

Thank you.

fermi

If you mean put another default on your credit file when there was one previously, then no, that is not true.

Any debt advisor who tells you they can should not be doing that job or needs basic retraining.

shelley2005

I challenged her when she said it and asked if she was sure. She said yes as she was told it while doing her job.

fermi

Well, she is talking nonsense.

fermi

http://forums.moneysavingexpert.com/showpost.php?p=65758872&postcount=9

Experian_company_representative wrote: »

We've sought clarification from the Information Commissioner's Office on this and they have confirmed our view that a credit agreement can normally only be recorded as defaulted once on a credit report for a period of six years. If the debt is sold on within this time the original default entry is marked with a 'debt assigned' or 'debt assigned to CAIS member' flag (Experian terminology). The latter is used when the new company is also a data sharer and it can then register a record of the default, same date and amount, in its own name. The flag on the original entry makes sure the default is only counted once in credit rating calculations and other assessments. But, importantly, once the six year period expires the account cannot be registered as a new default again in the future, either by the original lender or a new company.

I hope this clarifies the situation. Erudio has now been made aware of this and ICO has issued new advice to its own advisers.

James J

The above query was regards a student loan, but it applies just the same to any default.

dumpyboy

I have a post on here were Sainsbury did this to me, after a lot of complaints it was suppose to have been removed ,they took the default off left the account on my credit file as a okay now sent to fos hope they find in my favour not holding my breath

shelley2005

Thank you Fermi. It would be awful to have some re-added when they are about to drop off in the next couple of years.

I'm glad they removed yours dumpyboy. It just seems like a double punishment. 6 years is a long time for something to be on your credit file. To add one again just seems mean almost.

dumpyboy

I hope that fos will get the account removed all together as everything on here says the account goes all together , they insist as money is still owed it has to be reported

fermi

shelley2005 wrote: »

Thank you Fermi. It would be awful to have some re-added when they are about to drop off in the next couple of years.

Very very occasionally a company or debt collector will put one back on. Believe me when I say that is wrong and that can be fought and removed.

Dumpyboy's experiences are very very very very untypical I assure you. Over the years I've been doing this seeing 100s/1,000s defaulted account taken off credit reports, paid and unpaid, I have not seen any that can be made to stick when the date is altered or they are re-added.

shelley2005

I will be sure to keep a good eye on my file. Thank you for your help.

dumpyboy

fermi wrote: »

Very very occasionally a company or debt collector will put one back on. Believe me when I say that is wrong and that can be fought and removed.

Dumpyboy's experiences are very very very very untypical I assure you. Over the years I've been doing this seeing 100s/1,000s defaulted account taken off credit reports, paid and unpaid, I have not seen any that can be made to stick when the date is altered or they are re-added.

I hope that fos agree you but they do seem rule aganst a lot of things that people on here say can not happen