MAX Recovery - Help needed!!!!!!

Bosie

I've been cleaning up my credit files since going bankrupt a few years ago. Most annoying is Max Recovery, they have entered 3 defaulted accounts on Experian and 1 with Equifax.
What is getting to me, they bought the so called debts after my bankruptcy? Is this illegal to then enter their details on my credit files as defaults?

One reply I've had back is from Equifax saying max won't remove it as they bought the debt. This seems incredible They say the debt is to Otto group, think it must be my old Freeman's account but this was included in the bankruptcy.

So mad, help please.
Bo x

philnicandamy

have a read here

http://forums.moneysavingexpert.com/showthread.html?t=677875

if they continue to be unhelpful & refuse to change anything then you'll have to lodge a complaint with the information comissioner (details in the post I listed)...I must have been lucky they bought 3 of my barclays debts & i've had no problems with them

Tigsteroonie

Max Recovery aka Eversheds were very amenable when we wrote to them to get details on our credit ref. files corrected post-Trust Deed. Have you written to them directly about this, detailing your BR date?

Bosie

I went bankrupt in 2004, a year later a letter came from Eversheds (Max) about a debt they bought after my bankruptcy. I phoned them and they said it would be sorted. Never heard off them again. My point is this cannot be legal, buying a bankrupt debt? It's pointless really, they have no right to put details on a CRA saying I'd defaulted to them!
I will write to them directly as CRA's don't really seem to help.

philnicandamy

unfortunatley it is legal & very common practice for firms like this to buy up thousands of pounds of debts from places for very little (I think its about 10p in the pound)

it happened with mine & happens with others every single day

Cinderbrook

Why would they do this? Sorry if this is a dim question but what does a company like Eversheds gain from buying a debt from a bankrupt?
C

betterlatethannever

Cinderbrook wrote: »

Why would they do this? Sorry if this is a dim question but what does a company like Eversheds gain from buying a debt from a bankrupt?
C

Sometimes BR have assets that get sold.
As Phil said they bulk buy debts for pennies, so if they only get back a few quid on one or two of the debts then thats a profit for them.
If they're lucky they'll get back a good amount from a BRs sale of car/property etc.

philnicandamy

what happens with companies is they sell the debts on in a bulk list to the cheapest firm...once the debt is sold they just "forget" to inform the companies the person they're trying to chase for a debt is bankrupt...if they're lucky sometimes they will approach the OR in charge of your case in the hope they might be able to claw some cash back that way...not always happens though

**EDIT**Blimey that BLTN has had her beans this mornin!!

fermi

As said, Max Reorvery are making a gamble that on average they will get more back from the OR/trustee than they paid for the debts.

Given that they will have paid peanuts on each debt, even a modest return on the odd one or two will make them some profit.

Strange world.............

Bosie

Thanks everyone, what I can't get my head 'round if it was a bankrupt debt they can't say I defaulted to Max, especially a year later when they bought it! Very weird world of money:mad:
Bo x

fermi

Bosie wrote: »

Thanks everyone, what I can't get my head 'round if it was a bankrupt debt they can't say I defaulted to Max, especially a year later when they bought it!

They can have a default on your file. But the same rules apply to them as they do with the original creditor.

The default must be dated no later than your BR date. Note that that is the official recorded "default date", NOT the date that Max updated your file. It's easy to get the two mixed up.