DCA reporting to Credit Reference Agency

utroi85

Hello everyone, apologies if this has already been answered but as of yet I am unable to find the answer I seek.

When a debt collection agency "buys" a debt, what are the guidelines regarding the reporting of the account to the CRA's ?

Is there an obligation for them to notify the CRA's that they have bought the debt or can they just chase with the debt remaining with the original creditor in the eyes of the CRA's.

I only ask as I have all 3 of my reports in hand having very recently got them and today received a letter from a DCA claiming previous contact (which they haven't - another matter entirely which I've already disputed) but the account remains with the original creditor.

:beer:

fermi

There is no legal obligation on the purchaser to carry on reporting to the CRAs.

The sale agreement for the debt may obliged them to, but that is between the original creditor and them.

However, in the case where they do not then the seller must make sure their old record is not misleading. That was covered in the old ICO guidelines which said.

54 Where the purchaser of the debt does not agree to take control of the record, the original lender, and at least in part the credit reference agency, will remain responsible if the original record is kept on the file. When the debt is sold or assigned, the customer will no longer owe any money to the original lender. If the record is not removed, the sale or assignment should be recorded and the balance should be shown as zero. The customer should still be told who the debt has been sold or assigned to.

utroi85

Thanks.

Just so I know I am reading this correct.

Creditor sells debt to bottom feeders, original creditor should log the sale and show the account as £0 ? (as the bottom feeders have not claimed the debt themselves as far as the CRA's are concerned)

I don't deny the debt, I intend to pay what I owe in full BUT the bottom feeders have been a little creative in how much they say I owe - on first contact !!