Why do I have two defaults for the same account?

You might see this if your lender is still reporting the default, even though the debt now belongs to a separate debt collector who is also reporting it.

This happens because your relationship changes with the original lender when you default on a credit agreement. They no longer see you as a customer, but as a debtor. So, they will often sell the outstanding debt to a debt collector.

The lender should close the old account once it’s transferred, and the debt collector will then report it as a new account. But sometimes, the lender continues to report the debt as well, so you’ll see the default twice on your report.

The default date will stay the same and both accounts will drop off your credit report six years after the default date. Lenders should be able to see from the account details that they relate to the same debt, so you don’t need to worry about the duplication. If you want to try and have the original default removed, get in touch with the lender to see if this is possible, or whether it can be suppressed.