Old debt appearing as a new debt on credit report

jammy_c

Hey Guys!

A debt to Natwest bank that i've been paying for the past 2.5yrs has recently been passed onto a debt collection agency (I recieved a letter to tell me this) and is now appearing on my credit report as a new loan account. Is this normal? how will it affect my credit rating long-term? short term it's dropped 16 points since the last report due to this (report is with Clearscore).

TIA,
James

sourcrates

When you say "passed on to a debt collection agency" I think you mean it was sold to them.

That is the only way a DCA can report to your credit file, as collection agencies do not own your debt, they are just appointed as managers.

Lets give them their correct title, they are a Debt Purchasing Company, not a collection agency, occasionally, when a debt is sold, two entries are visible on your file, the one from the OC, and the one from the new owner.

The original entry should state the date of default, and a zero balance.
The new entry should show the same default date, and the outstanding balance, they are both status updates of the same default, so perfectly normal.

Please read the sticky thread about credit scores, they are pretty much just marketing gimmicks in the UK.

jammy_c

sourcrates said:

When you say "passed on to a debt collection agency" I think you mean it was sold to them.

That is the only way a DCA can report to your credit file, as collection agencies do not own your debt, they are just appointed as managers.

Lets give them their correct title, they are a Debt Purchasing Company, not a collection agency, occasionally, when a debt is sold, two entries are visible on your file, the one from the OC, and the one from the new owner.

The original entry should state the date of default, and a zero balance.
The new entry should show the same default date, and the outstanding balance, they are both status updates of the same default, so perfectly normal.

Please read the sticky thread about credit scores, they are pretty much just marketing gimmicks in the UK.

Thanks, that makes sense then. As long as it's not a problem per se, I'm fairly happy. Just raised my concern. So it will drop off my credit file at the same time the original debt defaulted and won't prolong the recovery period of my credit report?

[Deleted User]

Correct, the default will be removed after 6 years, they cannot add a new one (with a new date) and payments etc will disappear