Hi

I am looking for some help in identifying what the correct default date should be on an old debt from Barclaycard.

I went into arrears on a Barclaycard account during 2011 and the debt was transferred to IDR/Link Financial Outsourcing in March 2012. There was no default issued to the credit reference agencies by Barclaycard before it closed the account and transferred it to Link, who subsequently registered a default in September 2012.

However, having gone through old paperwork whilst preparing a CCA request, I have found a default notice (section 87(1)) from Barclaycard (via Mercers) in December 2011, i.e. before it was closed and transferred to Link. In addition, I also received a default notice from Link in September 2012, just before they registered one with the CRAs. The default is still on my files and is due to drop off this September.

I believe the correct default date should be the December 2011 one, as that is when Barclaycard sent me a default notice and 3 months before they closed the account and sold it to IDR/Link. By September 2012 I had also been in arrears for around 1 year, which I think is too long before a default should be registered under ICO guidelines. However, I am not completely sure and have the following questions:

1. Must the creditor register a default when they issue a section 87(1) default notice?

2. Can the debt be sold to a third party DCA without a default being registered?

3. If yes, can the DCA subsequently issue its own default notice and register a default?

4. Related to questions 2 & 3, can I be issued with two section 87(1) default notices (I am aware that it is not allowed to register a default twice but not sure if this is the same thing).

The debt is not settled.

Clearly, if I get the default changed to the earlier (and I believe correct) date then it will drop off my files.

Any help gratefully received.

Hi rd076 and Welcome to CAG

1. Must the creditor register a default when they issue a section 87(1) default notice? Supposedly if you fail to rectify the breach within 14 days and also terminate the agreement.

2. Can the debt be sold to a third party DCA without a default being registered? Yes...but why would they if the account is still live and in good stead...It must be terminated?

3. If yes, can the DCA subsequently issue its own default notice and register a default? Only the creditor or legal owner can issue a default notice....so as in 2 above if sold live which is never the case as a DCA will not offer credit and allow normal use...only collect payment

4. Related to questions 2 & 3, can I be issued with two section 87(1) default notices (I am aware that it is not allowed to register a default twice but not sure if this is the same thing). Yes but only from the OC.. providing you cleared the arrears from the 1st and rectified the breach ...but... the DCA cant issue a further default notice because you cant breach a terminated agreement.

Its confusing but if you regard a DCA as a collector and not a creditor...its more simple to understand.

Bottom line Dec 11 (date of DN + 14 days) is the default date...Link cannot issue a default notice

Andy

Thanks for your help.

This is my understanding too but I have received advice that the DCA can issue a default. As you say, I think this would be if I rectified the original default notice with Barclaycard and then breached a further agreement with the DCA. However, I hadn't set up a payment plan with the DCA - nothing had changed from when I received the first default notice from Barclaycard in December 2011. As such, I have said to Link that that the default should have been registered in December 2011 rather than September 2012.

A DCA cannot issue a default notice...they dont buy live debts....nor can you breach the agreement with them...the agreement was terminated before assignment.

Obviously in your case BC (Mercers) forgot or didnt get chance to update the Credit Reference files..which should have been anytime after December 2011..within 3 missed/reduced payments.

As it was assigned before the end of this period (March 2012)...Link has updated your credit file and placed the default as September 2012...but they have only updated the original creditors intended data....even if several months late.

Link are not a creditor so cant issue it on their own....only update Barclays data.

Anyway it will disappear this September on its 6th anniversary even though it was marked 7 months late.