Removal of default on my credit report

Helenmusgrave

Please can you help?  I am applying for a joint mortgage and being told that I need to remove Shop Direct from my credit report otherwise I will not meet the elegibility criteria. 

Basically in 2019 Shop Direct sold my debit to Lowell however my credit report with Experian shows both accounts for the same debit. 

Although I can see that it is the same account and Experian have confirmed via email that it is the same debit, the Mortgage leader is stating they want the Shop Direct Account to be removed. 

I have spoken the Experian and they have informed me that they are unable to remove the account unless instructed to by Shop Direct. 

Please can you advise the best snd swiftness course of action. Time is not on my side. 

Puddles83

You can’t get something removed from your credit history that should genuinely be there.

Helenmusgrave

The mortgage lender states it can be removed apparently. 

Batesy1976

Have you actually been credit checked by the lender?

Both accounts shouldn't be showing on a lenders credit check as they relate to the same debt.

Helenmusgrave

I can't speak to the lender.  Our mortgage broker is speaking to them.
I don't understand why shop direct can't remove their account as they sold the debt to lowell in 2019.  It's not being totally removed. 

Puddles83

They won’t / can’t because it’s correct.

Batesy1976

Helenmusgrave said:

I can't speak to the lender.  Our mortgage broker is speaking to them.
I don't understand why shop direct can't remove their account as they sold the debt to lowell in 2019.  It's not being totally removed. 

What I'm trying to figure out here is if the lender has seen your files and seen two defaults or if they've just been told there are two defaults and are saying "Ooh, you'll have to get rid of one of those" without actually seeing the file themselves.

The way it's supposed to work when one company (usually a DCA) buys a debt is that although you can see two accounts on your file, anyone who searches your file will only see it once, being reported by whoever currently owns the debt.

You need to find out if the lender has seen your file or not.  If they haven't and they're just going off what they've been told, they need to do a hard search and see the file.  If they have actually done a search and both are there it gets trickier (I'm actually not sure who to approach in this instance but my gut would be Lowell.)

The other possibility (although perhaps less likely with a broker involved) is that they are actually objecting to there being a default at all, i.e they have searched you, can see one, and want it gone and there are some crossed wires here.

Dellgrad12

Instead of going via Experian you might be better off submitting an official complaint to Shop Direct, explaining what has happened and ask them to remove their record.

Batesy1976

Dellgrad12 said:

Instead of going via Experian you might be better off submitting an official complaint to Shop Direct, explaining what has happened and ask them to remove their record.

There is little point in doing that until the OP has ascertained exactly what the mortgage provider is seeing.


Shop Direct do not need to remove their entry.  As long as the original entry is settled with a balance of zero, two defaults for the same debt is fine.

backinbusiness

You are wrong - there shouldn't be two defaults for the same debt.

Batesy1976

backinbusiness said:

You are wrong - there shouldn't be two defaults for the same debt.

https://debtcamel.co.uk/get-rid-of-a-default/#A_debt_collector_has_added_a_later_default

“A debt collector has added a later default”

They shouldn’t have done this. A debt collector can add a new record, but it should have the same default date as the original lender.

Write to the debt collector and ask them to correct it, and then appeal to the FCA/ICO if necessary.

https://debtcamel.co.uk/lender-written-off-debt/

If a debt has been sold, this is what should happen to your credit record:

• the original creditor will have marked the debt as satisfied, with a balance of zero;
• a marker will have been added to the debt to say that it has been assigned or assigned to a CAIS member (those are Experian terms – the wording on other credit reports may be different);
• the debt purchaser will then add a new record for this debt with the correct balance owing.

https://legalbeagles.info/forums/forum/legalbeagles-consumer-forums/welcome-forum/77823-defaulted-twice-for-same-debt?p=956160#post956160

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.

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