Hi all,
Looking for some advice because this situation is becoming unbelievable.
A number of years ago, an energy company sold a debt relating to my account to a debt collection agency. The problem is the debt did not exist.
I have now discovered that the debt collector recorded a default against me last year without my knowledge. I only found out because I am currently going through a mortgage application.
This default is now seriously affecting my mortgage options and potentially costing a huge amount over the term of the mortgage.
Since raising this with the energy company, they have confirmed:
- the account is closed,
- the balance is £0,
- no money is owed,
- collection activity relating to the account should be ignored,
- and in previous conversations they confirmed the account had been passed to debt collection in error and they are taking steps to recall
However, despite this:
- the default still exists on my credit file,
- they are now contradicting earlier statements,
- and they refuse to provide a proper signed letter explaining the situation for my lender.
One response says the debt was passed to debt collection and recalled. Another now says it was never passed to debt collection at all, despite the fact a debt collector somehow placed a default on my file.
I have repeatedly asked for a formal letter on company letterhead confirming:
- no debt was owed,
- the debt sale/collection activity was an error,
- the debt has been recalled/withdrawn,
- and the default will be removed or corrected.
Instead I keep receiving generic customer service emails which are useless for resolving the mortgage issue.
My questions are:
- If a company sells a debt that does not exist, are they legally responsible for correcting the default?
- Is this likely a GDPR/data accuracy breach?
- Could there be grounds for compensation if this directly affects mortgage costs?
- What is the best escalation route from here?
Thanks.