Lowell's closed account with zero balance but still registering monthly on credit report.

pmcalinden

Hi, 
I have recently began to unpick my credit report. I have two account that sit with Lowell's. They have informed me that both of these accounts are shown as closed with a zero balance. They said this was done as a "good will gesture" in 2018. Not too much goodwill as one has resulted in CCJ which I intend to challenge.

My query is, despite these two accounts having a closed status and a zero balance, they are still appearing monthly on my credit report accessed via credit karma as a monthly default and showing the full amount. Should this be the case? I would have thought a zero balance and not more defaults would have been reflected here? 

They offered to re-open the account which I declined until I have further information. 

Any guidance greatly appreciated. 

Many Thanks 
P

adamp87

Closed I’m assuming as in they are no longer chasing the debt?

Presuming it was defaulted less than 6 years ago then it’s still correct that they are reporting as defaulted until it drops off your file. 

It’s not another default it’s just the same default being reported

pmcalinden

Thanks for the return. 
That is correct it is less than six years old and they have informed me of a zero balance. 
If it's still being reported, should it still be showing full balance if the balance is zero? Seems illogical. 

adamp87

Up to them if they want to take it off, it is accurate to report it as 0 but it was defaulted and then closed I believe..

They haven’t sold this on have they to someone else?

 It’s very odd that they’ve just closed it as a good will gesture sounds fishy or something was up with it to begin with.

pmcalinden

It has not been sold to another party. 
How can it be accurate to report a default for each month is the balance is zero? Surely you cannot miss a payment on a zero balance? 

sourcrates

pmcalinden said:

It has not been sold to another party. 
How can it be accurate to report a default for each month is the balance is zero? Surely you cannot miss a payment on a zero balance? 

Although the balance should show as zero, defaults stay on your file for 6 years regardless of what you do, that is the statutory time scale, the account defaulted on the date shown on your credit file, that is reflected on a monthly basis as a status update, and will show that way for the full 6 years.

PixelPound

They will have been defaulted debt, so the defaults will show for 6 years on your credit file. It sounds like they are not pursuing this, have they said why? If sounds like it could be unenforceable or just uneconomical to chase, either way the default will stay there, they will just stop sending you letters asking you to pay. The default will not be removed unless it shouldn't have been there - e.g. debt written off due to deemed irresponsible lending.