DCA have applied a default to my credit file

helenwes

Hi


I had a credit card with Halifax and I defaulted on the repayments. They issued me with a default notice that has sat on my credit file for nearly 4 years.


At that time they also sold my debt to Westcott.


I then agreed a debt management plan with 'StepChange', which I have kept up to date with since it started.


Today I checked my credit file, and can see a new default notice (issued last month) from 'Lowell Portfolio'.


I was surprised to see that I now have 2 default notices for the same debt, which I'm sure has a more damning impact in my credit score / file than just one. I was also surprised to see 'Lowell'.


I called StepChange who confirmed that they have, and have only ever had, Westcott as the recorded debt collection agency.


They advised me to call Halifax, who say they have no record for me, because the debt would have been sold.


Before I start the dreaded process of contacting both Lowell and Westcott, I wondered if anyone


a) knows if it's standard practice for DCAs to issue default notices, and indeed for me to have 2 for the same debt (seems incredibly unfair and not a true reflection, as it's effectively saying I have double the debt, and have defaulted twice)? And how on earth I go about getting the Lowell one removed, if they have no power / reason / right to issue me with one.

b) could offer any advice on how to deal with these agencies, without stirring up a hornet's nest (i.e. provoking a visit from someone to my house etc)



c) could offer any other relevant information / advice


Thanks for any relevant information

National_Debtline

Hi

Does the Lowell default have the same date as the original default? If it’s a new date it’s incorrect.

You should only have one default per debt. What can happen is the status of default is updated each month, or if it’s sold to a new DCA, but it’s still the same default. It should still drop off your credit file 6 years from the original default date, and wouldn’t be classed as a ‘double default’ in a credit application.

James
@natdebtline

helenwes

Hi
Thanks, I appreciate your reply




Yes, both have a default date of September 2012. It looks as if I have 2 defaults for the same account, well, I do


I was told by StepChange that the DCAs don't apply defaults - is this correct? Can they?

National_Debtline

If a DCA bought the debt and a default had never been applied to the account previously (unlikely), then yes they can add a default.

In your case it sounds as though they’ve updated the status of the default, rather than adding a new default. As it has the same date as the original default it isn’t a new default and won't have any additional negative impact.

James
@natdebtline

helenwes

ok, and that's even though the first default is with Halifax name next to it, and the second default is with Lowell default next to it? (So to me, at least, they look like 2 different credit defaults). Sorry, just want to be clear before I start pursuing removal of the Lowell one.

National_Debtline

Yes, it’s got Lowell by it now to show that the debt is now owned by them but the default date is the key thing. If they had put a new date then you would need to get it changed.

James
@natdebtline