Debt sold - reset default date?

tp1

Hi there

We are a couple of years into a DMP and Barclaycard have recently sold a debt to PRA Group. While checking my credit record I noticed they have reset the default date from early 2014 to March 2015?!

I called Stepchange and they told me they're allowed to do this, and in fact, if they so wish, can do so every month!?

Is this true - What can i do as it seems very unfair?

While its not going to make any difference now, there is a chance it will add nearly a year to any options we have in the future.

Thanks in advance.

fermi

They CANNOT change the original default date. That is the part that says "default date" with a date beside it. That must stay the same as the original creditor.

They CAN however continue to record a D or 8 each month, as they are not new defaults, but just a status update on the original.

SO, depends which default part you are looking at?

tp1

Thanks for the reply.

It's a Noddle report and its the "Date of Default" at the top. Even the Default balance has changed! (lower as its take into account payments made).

fermi

That is VERY wrong then and Stepchange are telling you a load of twaddle if they claim that is OK.

fermi

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.

tp1

Not sure what Stepchange can do for me anyway to be honest, but I'm frustrated with the advice I was given. I even asked to speak to someone else as I was so sure. She pointed me to their website and here.

Just looked on their website and it says a Default can only be issued once on any debt.

So, do I go to the PRA group directly or complain to someone (is it the FOS/FCA)?

fermi

You need to complain about this to PRA, stating that you will take them to the FOS and report them to the ICO if they do not correct the default date.

The default date controls when the default and account come off your credit file, so if a year newer that would make it stay on your report doing harm for another year.

fermi

tp1 wrote: »

So, do I go to the PRA group directly or complain to someone (is it the FOS/FCA)?

Formal complaint to PRA first, and then if not resolved with 8 weeks then to the FOS and ICO.

May be worth contacting the FOS now though, as although they can't formally start off the complaint their side until the creditor has had a chance to respond, they will often agree to write an initial letter on your behalf at the beginning. Obviously a letter from them can get things shifting quicker

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

1. talk to the business first

First, give the business you’re unhappy with a chance to put things right. They have up to eight weeks to give you an answer.

If you’d like us to contact them for you, just get in touch.

2. tell us if you're unhappy?

If the business doesn't answer within eight weeks – or you’re unhappy with what they say – get in touch with us.

tp1

Thanks for the advice fermi.

I have saved all the credit reports for the last year and it is one of the things I check for the reason you mentioned.

I didn't notice at the time, but the the whole debt seems to have vanished for a month or so, as it changed hands.

fermi

They often do go AWOL for a few months while sold, and yes you were wise to keep the old reports so you can prove the old date.

Former_StepChange_Rory

tp1 wrote: »

Hi there

We are a couple of years into a DMP and Barclaycard have recently sold a debt to PRA Group. While checking my credit record I noticed they have reset the default date from early 2014 to March 2015?!

I called Stepchange and they told me they're allowed to do this, and in fact, if they so wish, can do so every month!?

Is this true - What can i do as it seems very unfair?

While its not going to make any difference now, there is a chance it will add nearly a year to any options we have in the future.

Thanks in advance.

Hi there,

Thanks for bringing this to our attention. We'd like to look into this for you, so we can see what's happened. If you could PM us your details to StepChange Private Messages we'll get back to you as soon as possible.

Thank you to Fermi for highlighting this for us.

Rory