Same debt on Credit Report

jackjones01

I defaulted on a loan in 2018 however the debt is showing on my credit report twice once with the actual lender and then again with the DCA is this right or should it only show once. In addition the original entry is not showing as defaulted it just says it’s closed. 

sourcrates

Your debt has been sold, and your file shows entries from the original and the new owner.

Original entry should show the date of default and a zero balance.

New owner entry should show same date of default and the outstanding balance.

Brie

Yes that's quite common.  

So say you owe £100 to Vodafone but never paid it.  Eventually they will close their file and sell the debt along to a debt collection agency for a fraction of the price.  The DCA will then log that you owe them the full £100 and try to collect. 

Some reports will have it showing that £100 is owed to both but anyone reading it will know that Vodafone is no longer interested but rather is just the source.  Other times the original creditor will have registered that the debt went from £100 to zero with the £100 showing up on the DCA at about the same time or perhaps a month later.  

jackjones01

sourcrates said:

Your debt has been sold, and your file shows entries from the original and the new owner.

Original entry should show the date of default and a zero balance.

New owner entry should show same date of default and the outstanding balance.

This is how they both show on my Equifax report - I have only ever had one loan and the info don’t seem to tally the original debt don’t show as being defaulted. 

Brie

Yes - precisely as expected.  

The loan for £2258 shows as having defaulted in 2018 and settled in 2019 (so balance became zero) when it was passed to the DCA.

The second bit shows the default amount of £1710 in 2018 with the DCA which presumably you paid off so that it was marked as settled in May 2021 with a zero balance.

jackjones01

Brie said:

Yes - precisely as expected.  

The loan for £2258 shows as having defaulted in 2018 and settled in 2019 (so balance became zero) when it was passed to the DCA.

The second bit shows the default amount of £1710 in 2018 with the DCA which presumably you paid off so that it was marked as settled in May 2021 with a zero balance.

Great thanks - should I be concerned the original lender does not have a default date on the entry, 

sourcrates

No, the whole lot will drop off your credit file on the 6th anniversary of the default date next year.