Default accounts after closed/settled

oneforthepot

I like to think I have a pretty good handle on my credit report but am totally perplexed by the latest update to my file.

I had two accounts with Three UK (Hutchison 3G) which due to a failing business and an even more failed relationship meant that they went in to arrears about three years ago. After a few months the two accounts were sold on to a debt collection agency who then passed this on to another debt collection agency. Long story short, I started to pay off the debt on the two accounts with a regular monthly payment and the two accounts on my credit report showed as being closed (I believe when I had access to my Experian report they said they were settled). Now, after more than a year of clearing down my debt, this month my credit report says that the two accounts have gone into default, and my credit score has just dropped dramatically.

I'm struggling to understand exactly how/why. I was under the impression that when a debt was sold on, the account was marked as settled or closed. Even more confusing is that on my file, where it shows me what has changed this month, it tells me I opened my accounts, they went into default, and I closed or settled my accounts. Specifically it says:

You opened your HUTCHISON 3G UK LTD (I)
You opened your HUTCHISON 3G UK LTD (I)
Your HUTCHISON 3G UK LTD (I) account went into default
Your HUTCHISON 3G UK LTD (I) account went into default
You closed or settled your HUTCHISON 3G UK LTD (I) account
You closed or settled your HUTCHISON 3G UK LTD (I) account

The above information is taken from my report on ClearScore which is from EquiFax. Any help or advice would be very welcome.

Kind regards,
Kieron.

National_Debtline

Hi Kieron and welcome to MSE,


The default should've been recorded in an appropriate time to the accounts falling behind. When the account is sold/ passed onto the debt collector the original creditor can mark the account as closed or settled and then the debt collector should record the debt under their name. The debt collector can re-record the default under their name, but it must be under the original default date.


The key issue is that the information on your credit file needs to be accurate. So, if the default has been added retrospectively that should be ok. But if they have added the default under a recent date, you could challenge this and ask them to back date it. If they refuse you can take the matter to the Telecommunications Ombudsman and Information Commissioner. Defaults show for 6 years from the date of default.

Laura
@natdebtline