Precise seeing one debt as two defaults

sharpeye

First post on here so any help is appreciated.

I entered a debt management plan 2 years ago, and have been making regular payments ever since.

We need to move house so are trying to apply for a mortgage with Precise. Their criteria states no more than 5 defaults registered in the last two years.

I have 5 accounts with defaults that are part of the DMP, but the problem i am having is that two of the accounts were Barclaycards. They have registered the account with a default, and have sold this on to two debt management companies, who have also registered a default. The two barclaycard accounts show a default but a balance of 0 and satisfied, and the two debt management companies show a default with the correct balances.

The problem i am having is that Precise are seeing this as 7 defaults in total, not 5. They see two each for the barclaycard/debt management people meaning i fall outside their lending criteria, but i feel this is incorrect as 4 defaults are for 2 debts.

Can anyone explain if i am missing something in thinking they should only see 5, not 7 defaults, and who i could approach to try and resolve it?

Thanks

[Deleted User]

No that is correct.

The Barclays account will be defaulted but marked as closed when it is sold onto the collection/management agency.

The collection/management agency then pick up the balance and continue the default markers.

sharpeye

So although i have 5 debts it is correct that it shows up as 7 defaults?

[Deleted User]

Yes.

But the 2 accounts with Barclays are marked as satisfied.

sharpeye

not the response i wanted but thanks for your help - you are the first person who has been able to give me a straight answer

the barclaycard accounts show as satisfied, i just wasn't sure if that would mean the defaults wouldn't show up as well

much appreciated

[Deleted User]

The defaults will still show as it's a correct history of what happened.

The account and debt was then sold on, marked as satisfied, and the default resumed on the new account

WorkingTowardsDebtFree

What Gary has advised is incorrect.

A single debt should only appear once on a credit file, and if you default that default can only be registered once.

So if you have two Barclaycard debts (two accounts) and they default, then you (rightly) have both accounts registered, and both have a default.

If Barclaycard then sell those debts on, either the name on the account should change from Barclaycard to the new debt owners, or the old accounts should be replaced with accounts from the new debt owners with the original default date.

You cannot and should not be penalised twice for the same debt.

You need to create a dispute by raising a formal complaint to both Barclaycard and the new debt owners. I'd say raise disputes via the Credit Reference Agencies too, but they normally end up bouncing around. By raising a formal complaint to both old and new owners, reminding them of their need to provide accurate information and following ICO guidelines, you set a clock ticking - and if they don't resolve the issue within 8 weeks you can take the issue to the ICO for their arbritration.

Anthorn

But check the date of the new default which should be a continuation of the original default. The means the date of default is the same as the original date of default.

I would however disagree that the original default is moved to settled and a new default has been entered. The settled status screams out to lenders that the debt has been settled possibly for an amount which is lower than the amount owed. Both settled and default means that you are being penalised twice for the same debt. I think that when the debt was sold it should have been moved to closed status because moving it to settled is not true.

fermi

https://ico.org.uk/your-data-matters/credit/

One of my defaulted accounts has been sold on to a debt collection company. This debt is now appearing twice on my credit file. Is this right?

If it is clear from looking at the two entries that they relate to the same account, with the same default date and balances and the original debt is clearly showing as settled then it is likely that we would consider this to be fair in terms of the DPA. However, if the entries are recorded on your credit file in a way that may look like they are two different debts, or that could make the debt remain on your credit file for longer than six years from the date of the original default it is unlikely that we would consider this to be fair.