SLL pursuing a debt for a closed account - what action can they take?

sprocket88

The debt was originally with Sunny, who closed the account and sold it on to SLL Capital without marking the account as defaulted.

Does SLL have any legal grounds to pursue this now the account has been closed without officially being defaulted on? It seems like that goes against the collections process.

National_Debtline

Hi sprocket88

Generally you would expect a creditor to mark a default on your credit file before selling the debt on to a debt collection agency (DCA), as the default is a sign that the relationship between the creditor and debtor has broken down. However, even if the default has not been registered it won’t mean you don’t owe the debt or cannot be pursued.

If you want a default to be registered you can raise the issue with the DCA or original creditor. They are both entitled to register it, but the DCA should use the same date as the creditor. It means the debt will drop off 6 years after the date of the default.

Before you do that we should consider what your intentions are with regards to paying the debt. It may be more beneficial for you not to have a default registered as it may have a negative impact on future credit applications. If you are in a position to settle the debt in full, it will be marked as settled and the debt will removed 6 years after the account was closed by the DCA.

Susie
@natdebtline