Being chased by debt recovery firm but account listed as "Satisfied"

benhodgson2

Hi

My girlfriend had a letter over the weekend from BW Legal asking for repayment on a debt of around £200 (with an early settlement of -20% within 28 days) on behalf of Payday UK from early 2013. I got her to log into Noddle just to check it over first but the account is marked as "Closed" and "Satisfied".

Now from my understanding these firms just bulk buy defaulted accounts and then chase them aggressively to make quick cash but why are they chasing her for an account that is closed?

Any help appreciated.

Thanks

MrsTinks

Could be that the account was not marked as settled internally or that she had more than one loan with them. People with payday loans will often take out a new one to pay the old one if they are struggling. Are you sure the one they are chasing isn't a separate one with the same company?

What does the account state on the other credit agencies? And does she recall if she settled this and which might be right?

It's also not impossible that the debt was repaid and the internal record keeping was bad and this was sold as outstanding despite being paid - you need to see if she has any recollection about what happened at the time first.

benhodgson2

This is definitely the same account. There is only one other on her file (completely separate company) and I settled that on her behalf last year.

Naturally she is being a bit secretive about this because I wasn't happy with her about it (she had previously told me that the account I settled for her was the only one) but I don't think she had repaid this in full.

I'm just confused as to why it's marked "Satisfied"? Either it is satisfied and I need to get the company off her back for harassing her, or it is not satisfied and the credit rating agency is wrong. Or am I missing something?

Thanks for the quick reply.

MrsTinks

Not all lenders report to the same credit agencies - you may find more on the other two...

It could have been marked satisfied in error or it could have been sold as unsettled in error.

I would suggest in this case a prove it letter will be your best course of action. Templates are on the Debt Free Wannabe forum at the top

dieselv2

You've said settled and satified....did you pay debt off in full or by Full & Final Settlement?

benhodgson2

Settled and satisfied are referring to the two separate accounts on her file. One is marked settled and one satisfied, I'm aware of a difference.

The one in relation to this thread is marked "Satisfied" under the Closed Accounts section as of 1/1/17 but she definitely hasn't paid it off herself. I'll get her to pay it ASAP if it has to be but I was under the impression "Satisfied" accounts are just that and are closed (so would not need further payment).

Just looking for some clarification before taking the next step.

Thanks

Sparx

MrsTinks already gave you the best advice (prove it letter).

ashp_2

Most likely scenario:

Once the debt collecters took over the debt the debt was marked as Satisfied with the original lender. The debt collecters probably do not report to callcredit and has registered the debt to experian or Equifax under BW legal or possibly under Lowell portfolio.

benhodgson2

Thanks everyone. Will check on Experian before proceeding.

sourcrates

When a debt collector buys a debt, the original owner has effectively sold them it, so it gets marked as either "settled" or "satisfied" on your credit report.

The new owner then registers the original default under there name, and they then chase you for the full balance.

When debts are sold on they are always marked that way.