'Account Settled' - is that the same thing as Default Date?

mattk1uk

Hi everyone,

I am trying to figure out the default date of an old Tesco credit card which has now been taken over by Cabot Financial Services.

I had a few cards which defaulted in 2013 due to me losing my job/marriage break up etc and never made any payments and they are all showing the correct default dates of around April 2013. However the account now being managed by Cabot is showing as ‘Account Settled 24/03/2015’. Would this be the date Cabot bought the debt and not the date of default?

What is confusing me is that on my ClearScore credit report for this same account, it is showing that I made payments for the previous three years which is definitely not right as I didn’t pay this card or any of the other cards from the same time, yet they show the correct default dates?

Can anyone shed some light for me?

Thanks in advance :-)

[Deleted User]

Settled date is not the same as default date.

mattk1uk

Thanks zx81, strange why it is listed on my credit report as settled isn't it.

Cheers

fermi

mattk1uk wrote: »

However the account now being managed by Cabot is showing as ‘Account Settled 24/03/2015’. Would this be the date Cabot bought the debt and not the date of default?

Sounds likely.

See: https://forums.moneysavingexpert.com/discussion/3172602

Sounds like they may have done just part of this:

CRA Defaults - Recording of defaults relating to debts that have been sold.

The practice of selling/buying debts is widely used. As long as the information is correctly recorded on a credit file by the lender selling the debt and the lender buying the debt, then two entries relating to one account would not be considered to be a breach of the Data Protection Act provided that:-

• both recorded entries are shown as being in relation to the same account/debt;
• the original debt entry should be shown on the credit file as being either ‘settled' or ‘zero' balance and should show that the debt has been ‘re-assigned’;
• the new DC who shows the debt in their name should maintain the original default date and the correct balances;
• the retention period for maintaining the information on a credit file should be based on the original default date regardless of who is responsible for the entry/debt.

mattk1uk

Hi fermi,

Thanks for your reply too

Do you think this is a mistake by Cabot having not reported the original default date of the original lender? And if so what course of action could be taken to get it amended?

Thanks again,
Matt

fermi

Given that Cabot are mind blowingly inept at times, it very well could be.

If you do want to complain, and feel there is benefit for you in it being changed, make it a formal complaint in writing, saying that they are in breach of the Data protection Act and principles by not recording accurate data, and in a way that would cause the account to remain on credit files longer than it should. That if not corrected you will take the matter to the FOS and ICO.

mattk1uk

Thanks Fermi, I may well do that since you’re correct in saying it will remain in my report longer than it should. What I don’t understand though is why it shows on my Experian account as having not missed any payments up to 2015 when I know for sure no payments were made from April 2013, the same as the others. It’s all very strange :-/

sourcrates

mattk1uk wrote: »

Thanks Fermi, I may well do that since you’re correct in saying it will remain in my report longer than it should. What I don’t understand though is why it shows on my Experian account as having not missed any payments up to 2015 when I know for sure no payments were made from April 2013, the same as the others. It’s all very strange :-/

Sometimes things just get made up, if they don’t have the data, they just presume.
In the same way accounts disappear from your credit file with out reason or notice, or anyone of a hundred more abnormalities, you would not believe how inept companinare are with your data.

mattk1uk

Thank you Sourcrates, so this is something I would like to sort out so I guess first port of call would be to contact Experian and dispute information held?

National_Debtline

Hi mattk1uk


The credit reference agencies (CRAs) should only record the information creditors or debt collection agencies (DCAs) give them. That means if you disagree with the information recorded you need to raise it with the company who gave the information to the CRA. If you go directly to Experian they won't change anything until they have had contact from Tesco or Cabot (depending which one of them recorded the payments).


Just be sure the changes you are requesting will be of benefit to you. A debt will be removed from your credit file 6 years after the date the default was registered. If no default was registered, the debt will be removed 6 years after the account was closed or the last payment was made.


Susie
@natdebtline

mattk1uk

Hi Susie,

Thank you so much for your reply, I’m very grateful!

I’m in two minds with the way to go about this since the original default date should be recorded around April 2013 but I can not see that date anywhere, just the ‘Account settled’ date in 2015.

If I can get it changed to that date by disputing it then it will benefit me as it will be removed next year.

However, if by challenging it I somehow end up shooting myself in the foot and it then stays on even longer then I’ll be gutted about that.

I will have another close look at all three of my credit reports (Experian, Equifax and Callcredit).

If it’s ok for me to put some screenshots up of this just to be sure I’m reading it correctly would you mind taking a look?

Many many thanks