2 defaults - same debt

[Jam74]

Hi there, new to this site.
I need to check out something.
Back in 2011 I had a loan and a current account with hsbc.
I went to cccs to set up dmp as couldn't afford the payments on maternity leave.

The loan had one account number and was for 12k ish and the current account 2k overdraft.

I defaulted, then hsbc wrote to me to say that idem capital securities were taking over and the total was 11k (after paying them on the dmp for a while.

I have checked my credit file and I have 2 defaults

1 hsbc - June 2012 for a loan total of 9k

2 idem capital securities April 2012 for current account showing 10355

As they both show it looks like I'm nearly 20k in debt and this is duplicated, what can I do ?

This only shows on Equifax, noddle only shows one of them.

Please help.

Thanks

[nemesis45]

Re: 2 defaults - same debt

Hi there, new to this site.
I need to check out something.
Back in 2011 I had a loan and a current account with hsbc.
I went to cccs to set up dmp as couldn't afford the payments on maternity leave.

The loan had one account number and was for 12k ish and the current account 2k overdraft.

I defaulted, then hsbc wrote to me to say that idem capital securities were taking over and the total was 11k (after paying them on the dmp for a while.

I have checked my credit file and I have 2 defaults

1 hsbc - June 2012 for a loan total of 9k

2 idem capital securities April 2012 for current account showing 10355

As they both show it looks like I'm nearly 20k in debt and this is duplicated, what can I do ?

This only shows on Equifax, noddle only shows one of them.

Please help.

Thanks

Ok The " style " of reporting accounts changed some time ago with the Information Commissioners Office Technical Guidance on Defaults, it was recommended that credit file should show an ongoing picture of the conduct have an account, which meant that and original creditors file entry and a debt purchasers updated entry should show side by side,

The original creditors entry should as " Settled" as the debt purchaser has paid for the debt. The debt purchaser amends the entry with its details, But the Original Default Date Must remain unchanged.
But the Credit Reference Agencies tend to " carry on regardless" .

You can ask the original creditor to remove its entry but there is no obligation for them so to do.

nem

[Jam74]

Re: 2 defaults - same debt

They both show as a default and they both have 2 different dates 3 months apart and they have different amounts so to someone looking at my file I have 20k outstanding rather than 9500k actual outstanding.
If they have no obligation to remove it, do I have to just leave it at that ? Seems a little unfair ?

[nemesis45]

Re: 2 defaults - same debt

They both show as a default and they both have 2 different dates 3 months apart and they have different amounts so to someone looking at my file I have 20k outstanding rather than 9500k actual outstanding.
If they have no obligation to remove it, do I have to just leave it at that ? Seems a little unfair ?

You say they " both have two different dates"?

There will be the actual default date and a date when the credit file was updated when the debt was sold.

Does the original creditors entry show as" Settled " >

nem

- - - Updated - - -

They both show as a default and they both have 2 different dates 3 months apart and they have different amounts so to someone looking at my file I have 20k outstanding rather than 9500k actual outstanding.
If they have no obligation to remove it, do I have to just leave it at that ? Seems a little unfair ?

You say they " both have two different dates"?

There will be the actual default date and a date when the credit file was updated when the debt was sold.

Does the original creditors entry show as" Settled " >

nem

[Jam74]

Re: 2 defaults - same debt

the hsbc one shows as default not settled in June 2012 and an amount of 9500k and the idem one shows default not settled April 2012 for £10,300.

- - - Updated - - -

The dates are the date of default so they both have different default dates but it's the same debt that was sold to idem.

[Jam74]

Re: 2 defaults - same debt

One other thing, the original creditors default was added after the idem one so I guess it couldn't show as settled because it was added 3 months later?

[nemesis45]

Re: 2 defaults - same debt

the hsbc one shows as default not settled in June 2012 and an amount of 9500k and the idem one shows default not settled April 2012 for £10,300.

- - - Updated - - -

The dates are the date of default so they both have different default dates but it's the same debt that was sold to idem.

OK that makes it a lot clearer, You need to make a formal complaint to the Data Controller at HSBC 's head office, include screen prints
of the credit file entries and copy it to the Data Controller at Idem.

A Formal Complaint obliges the recipient to fully investigate and respond to the complaint within 56 days.

nem

[Jam74]

Re: 2 defaults - same debt

Thanks, really appreciate the info.
Will this then remove one of them ?
Also one other question, does this mean my debt was 'sold' to idem? After reading hundreds of threads I think I am under the impression it's not sold unless it says satisfied on my credit file from the original creditor.
Sorry for the 20 questions. I just want to get straight with it all, and it's looking quite bad at the moment.

[nemesis45]

Re: 2 defaults - same debt

Thanks, really appreciate the info.
Will this then remove one of them ?
Also one other question, does this mean my debt was 'sold' to idem? After reading hundreds of threads I think I am under the impression it's not sold unless it says satisfied on my credit file from the original creditor.
Sorry for the 20 questions. I just want to get straight with it all, and it's looking quite bad at the moment.

No problems we are here to answer if we can.

The Formal Complaint should lead to the entries being corrected i.e. the original creditors entry being marked settled and
the " new" owners entry corrected ( default date and amount outstanding) the entries will the show the exact picture of the
conduct of the account, as required by the ICO which regulates Data Protection.

You can ask that the OC removes their entry but I would suspect that the may give the same answer as I have given above.

Those parties who for any lawful reason search your credit files will be aware that such entries do not amount to two defaults
for the same debt.

All defaulted accounts are removed from credit files 6 years from the default date Paid or Not.

nem

[Nibbler]

Re: 2 defaults - same debt

Current stance of ICO etc.

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.

[Jam74]

Re: 2 defaults - same debt

Thanks again guys, I don't mind them both being on there just want them to show the same date so it's clear it's the same thing.
When I do a credit score it says debt you have outstanding it shows as nearly 20k when it's actually only half of that, so once one of them shows as settled and the same default date posted it should show as the actual amout I still owe.
Sorted myself out now and in a much better place financially, we are wanting to buy a house and just want my report to show the true reflection of my credit history.
Appreciate the help
Great site.
No doubt I will be back picking your brains about something else again soon 😀

[Debt Camel]

Re: 2 defaults - same debt

Sorted myself out now and in a much better place financially, we are wanting to buy a house and just want my report to show the true reflection of my credit history.

Well obviously 1 default for 10k is better than 2 defaults for 10k ...

But you have almost no chance of getting a mortgage, except from a "bad credit" lender, if you have one unsettled default for 10k on your record ...

If you are in a much better position financially you should be considering making a full & final settlement on this debt and any others in your DMP. See http://debtcamel.co.uk/dmp-mortgage/

[Jam74]

Re: 2 defaults - same debt

Yes unfortunately we do have to take out a bad credit mortgage and this has been agreed through a specialist lender. I am in no position to make a full and final settlement because I have to use the money as my deposit.
So will plod on with the dmp. It's the only option to get on the property ladder.

[Debt Camel]

Re: 2 defaults - same debt

This really isn't a very good way to proceed I am afraid. At the moment with a long running DMP you could probably settle the outstanding debts quite cheaply.

Once you have a house, this won't be so cheap. And some of your nice quiet DMP creditors may wake up and decide they want more money or they will go for CCJs when they see that you have taken out a mortgage.
.