Two defaults for one debt

crystal_pixie_2

Hi,

Not sure if this question has been asked before but I am unsure how to proceed with this problem.

So I have paid off all my debts and I am in the process of cleaning up my credit file which seems to be going well. However, when I look at my Experian Report I have an outstanding default for MBNA from 2012.

Now I understand that this default will remain on my file for 6 years - fine. However, this debt was passed onto IDEM who promptly added another account to my file registering it as a default. The default dates are different but they are for the same initial amount. Both say "Satisfied" but my report is showing 2 defaults for the same debt?

Can creditors do this? More to the point who do I need to contact to get this extra default removed - should it be IDEM or MBNA?

Any advice welcome.

fermi

The ICO says this.

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

CRA Defaults - Recording of defaults relating to debts that have been sold.

The practice of selling/buying debts is widely used. As long as the information is correctly recorded on a credit file by the lender selling the debt and the lender buying the debt, then two entries relating to one account would not be considered to be a breach of the Data Protection Act provided that:-

• both recorded entries are shown as being in relation to the same account/debt;
• the original debt entry should be shown on the credit file as being either ‘settled' or ‘zero' balance and should show that the debt has been ‘re-assigned’;
• the new DC who shows the debt in their name should maintain the original default date and the correct balances;
• the retention period for maintaining the information on a credit file should be based on the original default date regardless of who is responsible for the entry/debt.

crystal_pixie_2

Thanks Fermi,

This is quite confusing as it shows as 2 defaults on my Experian report. My concern is that the dates do not match for the defaults. One is for 2011 the other states 2012. So it could be construed as being 2 defaults instead of one.

David_White

It's fairly common practice I'm afraid for the default to be recorded twice, once from the original lender and a second time from the debt company that purchased it.

The second date may relate to the date the company bought your defaulted debt.

fermi

Default dates must be the same. If they are not, complain to the company that bough the debt and insist they correct to the original date.