Credit Score on Purchased Debt after 6 years reporting with original lender

woozlewight

Hi,
I am at a loss to understand the credit report in the situation where a lender has purchased a debt.

I had a debt from a COOP bank card. This was reported as 6 months arears. It was part of my DMP. Five years into the DMP COOP gave me a default notice which I contested and won my case. The following year (Year 6) the score dropped off my credit file with no reference to COOP on the file.

I was in this position for about 6 months with a reasonable credit report. COOP then sold the debt to Link Financial. Link did not report on the debt for the first 3 months they owned the account, but then started reporting this debt on my credit file also displaying 6 months arrears even though its part of my DMP.

After calling Link Financial today, they have stated that because there is no default on this account with the COOP, they reserve the right to mark this debt and 6 months arears on my credit file until the debt is paid even though it had dropped off under the COOP.

Are they correct in this statement?

The statement on Noddle is that:

You've previously missed a payment(s) on one, or more, of your accounts

Remember
•Missed or late payments will be shown on your file for up to six years depending on the credit reference agency, so it’s important to pay on time.


If they are correct then it appears I would have been in a better position not to contest a default....

aero1

I'm not sure but I think I read somewhere here before that if a debt in included in a DMP or iva etc it cant be sold on. Otherwise people would never ever be free of debt...

I'm sure someone will be along that knows a lot more soon

Westminster

Debts definitely can be sold on regardless of a DMP as it is an informal arrangement.

aero1

Wow thats intersting and thanks for confirming.

So is it if its an IVA for example or a bankruptcy, it can't be?

Thanks

fermi

Can be sold on even if in an IVA or bankruptcy.

Does not change the legal effect of the IVA/BR on the debt though. It is still covered. Just if there should be a payout or dividend from the insolvency, then the new company gets it instead of the original. They can't demand payment from you.

aero1

ahh ok thanks Fermi.