Two defaults for same debt

[Helpwithdefault]

Almost identical but not.

Here's the timeline.

In July 2013 I defaulted on a 3 mobile account. This was written as £81 on my credit report under 3 Hutchinsons.

I ignore the debt until September 2014 when I contracted 3 asked them how much I owed them and asked to pay in full. They told me I owed £80.75 (I have in writing) and accepted my offer to pay in full.

My account was updated on 1/10/2014 to settled in full and was marked closed.

Now 6 months after full payment at the end of march I look at my credit report to see another default was added by a debt collection agency. It has the same date of default but there are a few differences firstly it has a red marker on March 2015 (is that fair when I paid in September), it has a different account end date (12/01/2015 which I'm guessing makes it look like I only paid in January?) and worst in my opinion it says I partially settled

So now it looks like I've had two defaults in the past with one partially settled and one fully settled. My credit vastly improved when I settled in September, I was able to get a credit builder credit card and interest paying bank accounts. Now my 02 contract has come to an end (always paid on time) and I can't get a new one! And missed out on a HSBC ISA because my score was "too low".

I really don't know how to start fixing this, can anyone give advice?

[nemesis45]

Re: Two defaults for same debt

Welcome to LB,
The way accounts are reported to credit reference agencies has been changing gradually over the past couple of years.
The Information Commissioners Office which is the regulator for such matters requires credit reference files to show " an accurate and up to date reflection of the conduct of the account".
In your case the debt had been sold to Lowell prior to your making payment to the creditor, ( mobile service are very quick in selling delinquent accounts.

What you see on your file is Lowell's updated entry which is the historical progression of the account not to separate defaults.
A correct picture of the account.

You can write to the Data Controller of Lowell at
The Lowell Group
9 Savannah Way
Leeds Valley Park
Leeds
LS10 1 AH

Requesting Lowell to remove its entry as it never became involved with the account as you had paid the original creditor.

Hope that explains the process and how to proceed now.

nem

[Helpwithdefault]

Re: Two defaults for same debt

What you see on your file is Lowell's updated entry which is the historical progression of the account not to separate defaults.
A correct picture of the account.

How is it a correct picture of the account if the debt did not exist in March 2015 yet has been put as having a default/red marker in March 2015?

Also how is it a correct picture of the account if it has been marked as partially settled when 3 was asked to confirm the full amount of debt (£80.75) and that was paid?

Finally what is the point in your suggestion to write to lowells? If what they have done is a "correct picture" and legal then I shouldn't waste my time writing to them should I? I doubt they're sympathetic people being debt collectors...

[nemesis45]

Re: Two defaults for same debt

The entry is correct the 2015 date is closure of the matter completely'
Lowell Bought the debt before you paid it.

Some creditors and DCA's will remove One the entries if asked.
Up to you stick with one default showing twice, either way a default stays in this case.

nem

[Helpwithdefault]

Re: Two defaults for same debt

The entry is correct the 2015 date is closure of the matter completely'
Lowell Bought the debt before you paid it.

Its ok for them to "close the matter completely" 6 MONTHS after I have paid completely!? That's ridiculous.

I did not have a default in March 2015 there is absolutely no reason for there to be a red marker in March. I am being punished after paying off the debt.

You havent stated why it's ok for them to say I partially settled.

Or why if the debt was sold I wasn't told by 3 to go to them. I paid on the agreement with 3 that I was paying in full and that my credit file would accuratly reflect that, which you can see 3 did.

I had no problem gaining credit in October! All my other accounts are run well and now my file has been shattered! I can't even replace the phone contract that has run its course! So for you to say this is the same debt is a lie, my credit file even states the "value of your debt has risen" no it hasn't! Only an awful debt collection agency has decided to post another default. No where on the original does it say debt assigned.

[Helpwithdefault]

Re: Two defaults for same debt

Like I've stated this new default has stopped my from being able to get a phone contract and ISA with HSBC (declined bank account due to "low credit score", their words). Nothing else on my file has changed other than more positives paying off cc in full each month, finishing O2 contract etc. The score should have been as high as in October but like I said now it's stating "the value of my debt has risen". This is NOT fair and NOT accurate.


I'd rather not go begging to Lowells. I want to complain about this to whatever government agency is authorising this treatment because like I said being punished twice for the same debt especially 6 months after payment is ridiculous.

[nemesis45]

Re: Two defaults for same debt

If you believe you have a reasonable complaint you should make it to The Information Commissioners Office.
There is only One Default on one debt the data shown.
The assignment is not mentioned, the creditor and or the debt purchaser can send you a Notice of Assignment which is not a matter reported on credit file.
This is on thing Lowell does properly sending NOA's.
Please do not call me a liar it is the same debt and it is ONE DEFAULT NOT TWO.
Your credit file would still be trashed with just one entry, the account was defaulted and paying
the debt after the default is placed does not result in the entry being removed,
My reasoning is that the assignment and your payment were made at the same time, which is why I suggested writing to Lowell!

The ICO for complaints Not FOS>

[Helpwithdefault]

Re: Two defaults for same debt

Your credit file would still be trashed with just one entry, the account was defaulted

Sorry, I realise you're coming on to this site with presumably good intentions and that's commendable, but the information you're giving is inaccurate and unhelpful.

My credit file vastly improved from the default being satisfied as recorded 1/10/2014. I was able to open an account with Halifax (previously rejected due to default) and got my first credit card.

My phone contract with O2 ended this month and I should have been able to get a new contract but haven't due to this "increase in debt". The only difference between my march report "Good" and this report "bad" is the added default. This are facts.

Also I don't think you have stated how the same default can be both settled in full and partially settled. Not logically possible imho but I don't think you have the knowledge to answer that. So I'll thank you for informing me of the ICO and ask them.

[nemesis45]

Re: Two defaults for same debt

My experience with CRA and the way accounts are reported comes from many years of dealing with these.
The information I have provided is to the best of my knowledge accurate and reflects the relevant guidance on defaults.
I can understand that you are concerned about your credit profile as you are right to be.
There is still no new default and from what I can see from the report you have posted Both Entries Are Marked " Settled and Satisfied." there is no mention of partial settlement both show £81.00.
The PS marker is likely to be an error which anyone in this situation would have quite reasonably have taken up with the company that reported the account to the CRA, you have the facility to place notices of correction on the credit files if you think there is an error as is evidenced by the "Something Wrong" prompt on the bottom of the entry
You have already accused me of Lying and now of inaccuracy again I can understand your need to be right.
I am not aware of the rest of you credit file so cannot comment on any increase in debt you may have accrued but both entries show a Zero Balance.
Insults will not help your case, and you should be aware there are at least two other agencies most likely carrying the same data.
nem