Best approach to take - advice please

dannytsg

I have recently reviewed my credit report (provided by Experian) to find that a debt company who recently bought an old defaulted debt from 2012 has registered a new default as of last month.

I had no idea that the debt/account had been sold or transferred to this new company and I was of the understanding that a default can only apply to a debt once regardless of who buys the account subsequently.

My first initial thought was to write to Experian to ask for this to be removed from my file and then go from there. What would be the best option and where should I start?

Thanks

Arleen

Do exactly that. But also keep in mind that they can for this whole year go to courts and apply for a CCJ, so make sure that they have correct and up to date address.

dannytsg

Thanks for the response. How would this work for them to apply for a CCJ on a debt that was defaulted with a previous company?

Arleen

Well, as they are chasing you for the money this means that they either bought the debt or were hired to do so. Which means that they can take it to court (either because they now own the debt or on behalf of the previous company) to demand a payment, check out the details of how that works: https://www.gov.uk/respond-to-court-claim-for-money
Important thing to remember is that the court paperwork will go to the last address you've left on the account, which mean if you've moved but didn't update it you may not know about the proceedings until you will find CCJ on your credit file.

dannytsg

Many thanks again.

I have a debt management plan which is now showing this company as assuming the account from the previous default. According to my plan account they have accepted my arrangement and have my up to date address as detailed with the management company.

I will open a contact centre request with Experian and go from there.

Arleen

If there is a DMP involved then I have no idea how that works, a good thing to mention in OP . For sure someone will be here soon enough who has experience with DMPs.

dannytsg

Apologies, I see that I should have put that in the main post. Hopefully someone could advise further,

MrsTinks

There should only be one default per debt - yes they can still seek a CCJ at any point whilst the debt is outstanding, but you would need to make that worth their while. Keeping up the agreement would mean they are less inclined to do so - why throw money at somethign if they don't need to? They can always do it later (so long as a debt isn't statute barred)

Follow the advice above about getting the default changed and go from there - no point worrying about something that will likely never happen

dannytsg

Thank you MrsTinks. I just don't understand why they would register a default on the account when I have my documentation from the debt management plan showing they have accepted the proposed agreement and payments.

MrsTinks

Because you defaulted on your original contracted agreement. You are now in an informal debt repayment agreement as it were. Only the formal one will be the one that matters really. It's possible the second one was registered incorrectly as a new one instead of a change to the original in the owner status of the debt.

National_Debtline

Hi

Just to make sure this is clear, a debt collection agency can add a default to your credit file when they buy a debt from the original creditor to show the change of ownership. The date of the default should be the same as the original default date though.

The defaulted account should come off your credit file 6 years after the original default date.

James
@natdebtline