Advice needed re: defaulted debt and credit file

MadWelshWoman

Hello, I need some advice please.

Years ago I got into debt trouble and defaulted on al my debts and made token payments to them to help alleviate the situation. There were quite a few and have now gone from my credit file. However, I have two accounts with Santander, a credit card and a loan. They were both defaulted in 2017 and 2018 although I can't tell from my records which was which. One in the interim was sold to Moorcroft which was fine and I've been paying them. The other remained with Santander and I was paying them. 

However, I had a letter the other week to say the account with Sanander has now been sold to Cabot Financial. I went through their website and completed a budget planner with the payments set up for it. However, they have now emailed me and have mentioned in it the account has recent defaulted and they would expect to take over the default in 2 months and report to my credit file etc.

However, the account was previously defaulted in 2017 so can they actually do this? I've worked so hard to wait to re-set my credit file as I'm looking for a mortgage and if they do this then I'll be back to square one. I don't know what to do so would appreciate any advice. I've not responded to that email yet. I can't find the exact info on the default but I do have a spreadsheet where I noted all the relevant default dates as they were showing on my credit file and there were definitely 2 there from Santander which have now passed the 6 year period to leave my file so I don't want them reappearing.

Thank you in advance.

sourcrates

The letters/emails sent out by the likes of Cabot and other debt purchasing companies tend to be generic templates, that cover most debt related circumstances, so if your accounts defaulted over 6 years ago, and no longer show on your file, then nothing will change that.

If Cabot do start reporting on that account again, you should make an official complaint to them, it shouldn't happen, but occasionally it does, making a SAR (subject access request) request to Santander should get you all the information they hold on you, including default dates etc, in case you need evidence.

MadWelshWoman

Thank you that's very helpful. Would you recommend I reply to Cabot to advise them that the default they mentioned is incorrect or just leave it and continue to make the payments I've arranged. I'm not denying the debt at all as it is my fault but I don't want it showing on my account again.

sourcrates

Just continue to monitor your credit report, and if necessary take the action mentioned, you can reply to them if it gives you closure on it, make sure you are all on the same page so to speak.

ManyWays

I've worked so hard to wait to re-set my credit file as I'm looking for a mortgage and if they do this then I'll be back to square one
Cabot wont add this to your credit record, well they may but they have to use the same default date as the lender so it will immediately drop off so you never see it. If they report it with a more recent default date so you can see it, complain as Sourcrates says

BUT

you need to set up an arrangement to pay Cabot, this debt is not statute-barred as you have been paying it so Cabot can take you to court for a CCJ if you dont set up an arrangement

AND WORSE

Credit scores matter less than you think for a mortgage application. A mortgage lender will ask for back bank statements and see the payments you are making to Moorcroft and Cabot and know these are defaulted, uncleared debts and view them the same as if they were still on your credit record. (This also applies to any other old debts you are paying that arent on your credit record)

You need to try to sort these so payments stop 6 months before a mortgage application. Settle them, have a partial settlement agreed, ask for the CCA agreement (for loans and cards, not overdrafts) and stop paying if it cant be produced...