Default on my account

[crazyevo]

Cabot have bought a defaulted account from Barclaycard. On my credit file Barclaycard have removed the defaulted account but Cabout have put one on showing my "arrangement to pay". I have been paying Cabot £32 a month for 2 years to pay off this debt, but after reading several websites and forums I have writted to Cabot to get proof of debt with them, including a signed copy of an agreement, which of course they wont have.
So my question is, if Cabot do not produce what I asked for and I stop payments, can they place a default on my credit file, even though there was already one one there when they bought the account from Barclaycard?

[Hurricane Puffrose]

Re: Default on my account

Hello and welcome to LB
As it is a weekend, there may be a slight delay in a definative answer, but as soon as the experts arrive I know they will help

in the mean time, kick ya shoes off and make yourself at home

[Ruby]

Re: Default on my account

I have two defaults showing on my credit reference records for one Barclays credit card debt. The original default shows as satisfied and the one from the DCA shows as outstanding. According to Experian they have done nothing wrong.

[Kafka]

Re: Default on my account

Id a defaulted account is sold to a DCA then the DCA assumes the role of data Controller for the account. That means that the credit agency entries should stay the same, but with the name of the ownner changed. Any Data Controller can also add details of a repayment arrangement.

Typically DCAs don't have the required paperwork so there are often ways you can challenge them Additionally, its likely that the account balance includes lots of charges that you don't legally owe, so these can be challenged.

To get detailed advice you will need to provide a timeline in date order with the full history of the account.

[labman]

Re: Default on my account

You can't be defaulted twice for the same debt.

[FlamingParrot]

Re: Default on my account

Cabot have bought a defaulted account from Barclaycard. On my credit file Barclaycard have removed the defaulted account but Cabout have put one on showing my "arrangement to pay". I have been paying Cabot £32 a month for 2 years to pay off this debt, but after reading several websites and forums I have writted to Cabot to get proof of debt with them, including a signed copy of an agreement, which of course they wont have.
So my question is, if Cabot do not produce what I asked for and I stop payments, can they place a default on my credit file, even though there was already one one there when they bought the account from Barclaycard?

You can only be defaulted once for each account. Once a default is recorded, it will stay in place for 6 years and then drop off, regardless of whether you pay or not. The credit files are meant to reflect your conduct with the account in terms of keep up contractual payments, if you don't, a default is recorded. Defaulting on a reduced payment arrangement shouldn't result in a further default.

If Cabot can't produce a copy of the agreement then the account will be unenforceable which means they cannot recover it through the courts. Because you have been making payments, the default will drop off your credit file 6 years after it was recorded, but the debt won't be statute barred.

[FlamingParrot]

Re: Default on my account

I have two defaults showing on my credit reference records for one Barclays credit card debt. The original default shows as satisfied and the one from the DCA shows as outstanding. According to Experian they have done nothing wrong.

That's commonplace when accounts are sold. The original default WAS satisfied, albeit not by you, but by the debt purchaser. The main point is that it should all disappear 6 years after the original default (now satisfied) was recorded.

See below, from the ICO Technical Guidance Notes:

The ‘sale’ or assignment of debts on defaulted accounts

52 When the rights to a debt are sold to a third party, the lender has to make sure the records with the credit reference agency are accurate, up to date and adequate. If they want information about the debts to continue on the credit reference file they will need to come to an agreement with the purchaser about who is to be responsible for this.

53 If the purchaser agrees to take control of the record, the customer should be informed that the debt has been sold or assigned and to whom. The credit reference agency file should be changed to show the name of the purchaser and that the rights to the debt have been sold or assigned. The purchaser should then make sure the record is kept up to date including changes to the amount still owed. The purchase should not affect how long the record is kept. It should be removed six years after the default.

54 Where the purchaser of the debt does not agree to take control of the record, the original lender, and at least in part the credit reference agency, will remain responsible if the original record is kept on the file. When the debt is sold or assigned, the customer will no longer owe any money to the original lender. If the record is not removed, the sale or assignment should be recorded and the balance should be shown as zero. The customer should still be told who the debt has been sold or assigned to.

[crazyevo]

Re: Default on my account

So the answer is no then? If they cannot provide the documentation I asked for then as far as I am concerned they have paid the debt off for me and as there is no legal contract between them and me so legally I owe them nothing? How can I find out when Barclaycard removed the default from my credit file?