Is This Legal re Defaults

[angelic]

Re ongoing saga with HFC/TBI Financial Services.

 

I have a debt with HFC which I defaulted on in 2003. I was making monthly payments to Scotcall then they told me to stop paying as it had been written off.

 

I received letter from TBI saying they had bought the debt in November.

 

Now, HFC removed the entire account from my credit record and this morning I have checked and the default is back on, but this time under the company name TBI Financial Services!

 

I'm not sure if they are allowed to do this as my original agreement has already been defaulted. I have not defaulted ANYTHING with TBI and certainly not back in 2003 as it is stated on the record.

 

I have CCA'd TBI last week so waiting to hear back from that but was wondering if anyone knows the legal situation on the default.

 

As always Many Thanks!!!

 

Joanne

[spamheed]

Did you receive anything in writing about the account being written off?

[angelic]

No the written off part is just a small part of the process as it was said to me on the telephone. I know this will not be believed or anything by any company/court etc so really it's neither here nor there.

 

Mainly its about the default being transferred into another company's name

 

Thank you

[spamheed]

No the written off part is just a small part of the process as it was said to me on the telephone. I know this will not be believed or anything by any company/court etc so really it's neither here nor there.

 

Mainly its about the default being transferred into another company's name

 

Thank you

 

If you take a look through this forum, you will find plenty of examples exactly the same as yours. an amount is paid to a DCA, or creditor as full and final settlement of an outstanding amount, the remaining balance is to be written off.

 

unless, this is agreed in writing prior to the payment being received, as a claim, it is not enforceable and any bottom feeding DCA can at any time, be sold the debt and chase after the remaining balance.

 

This is what has happened to you.

 

a couple of points to look at.

 

Is the amount that the DCA is now attempting to chase the same as the amount written off by the original DCA? (have charges been added by the latest DCA?)

 

have you at any time asked this DCA to prove they have a right to the debt?

[angelic]

Sorry I think I may have worded my original post incorrectly. I haven't paid a full and final settlement to anyone regarding this debt.

 

Basically I had a debt with HFC. I defaulted on this and they passed the debt to Scotcall who collected payments of £50 a month from me for 2 years.

 

Then I received a letter from Scotcall asking me to cancel the standing order as HFC had requested their files back on me. I asked why and he said it had been written off, then said he wasn't actually sure why.

 

I cancelled the standing order and have heard nothing at all for 2 years.

 

I received letter in November from TBI saying they have now purchased the debt and my payments were seriously in arrears (obviously as I had heard nothing more from HFC for 2 years!)

 

I sent a CCA to TBI last week.

 

I checked credit report in November and the HFC defaulted account had been completely removed.

 

I checked credit report this morning and it is back on, with same dates and everything except now it is under TBI Financial Services and not HFC.

 

My question is, can a default be transferred from one company to another? Especially as the defaulted account had mysteriously disappeared off my account for 2 months, then reappears under a different name with the same default date (2003).

 

Thank you

[spamheed]

Sorry I think I may have worded my original post incorrectly. I haven't paid a full and final settlement to anyone regarding this debt.

 

Basically I had a debt with HFC. I defaulted on this and they passed the debt to Scotcall who collected payments of £50 a month from me for 2 years.

 

Then I received a letter from Scotcall asking me to cancel the standing order as HFC had requested their files back on me. I asked why and he said it had been written off, then said he wasn't actually sure why.

 

I cancelled the standing order and have heard nothing at all for 2 years.

 

I received letter in November from TBI saying they have now purchased the debt and my payments were seriously in arrears (obviously as I had heard nothing more from HFC for 2 years!)

 

I sent a CCA to TBI last week.

 

I checked credit report in November and the HFC defaulted account had been completely removed.

 

I checked credit report this morning and it is back on, with same dates and everything except now it is under TBI Financial Services and not HFC.

 

My question is, can a default be transferred from one company to another? Especially as the defaulted account had mysteriously disappeared off my account for 2 months, then reappears under a different name with the same default date (2003).

 

Thank you

 

The simple answer is yes, it can.

 

The description of a full and final setlement was by way of an analogy, sorry if it confused.

 

basically, the debt was owned by dca 1 and the default recorded by the CRA showed it as belonging to them.

 

For whatever reason, ie. the account wasn't performing the way they wanted, the paying off of the debt would take too long, or the debt has been earmarked for sale, the debt was returned to the original owner.

 

At this point, regardless of what you were told over the phone, there would still be an outstanding amount owing on the account, which could be bought, sold, or transferred to another DCA.

 

This is what has happened and the new DCA have contacted the CRA to register the account and subsequent default as belonging to them. not very nice, but entirely legal and playing within the rules. simply a case of one DCA acting promptly to remove the default and the second, taking their time over recording their own default

 

I would slap TBI Financial Services with a CCA request and see if all of the paperwork is in order. you never know

[angelic]

OK well as long as it's legal that's ok.

 

I sent them a CCA last week as I haven't heard anything about the account in 2 years. I haven't moved, they just stopped pursuing the debt. I don't think it's reasonable that they can stop taking payments and making contact for 2 years then all of a sudden demand to know my financial status and demand payment within 14 days.

 

I'll see what the CCA produces though.

 

Thanks for the advice.

[angelic]

Quick Update:

 

Just got back from honeymoon on friday and a letter was waiting for me from TBI, basically saying the following:

 

We enclose your £1 payment returned. We have passed your file back to HFC as we do not hold the documents you have requested.

 

Hmmm - funny how their original letter demanding £88 a month from me stated that they have the agreements and they now own the debt, and they have even transferred the default into their name. Now they apparently DON'T own the debt.

 

I'm assuming I just have to sit tight and wait again for further contact requesting payment. They don't have any agreements by the looks of things. Plus only a year to go or so anyways until it can't be claimed for so I'm not pressing for anything from them!

[tomterm8]

As long as the dates are the same, they can change the default to the new company.

 

If they've returned the account, they should remove the default again, or at least change it back to the old company.