A sold debt showing twice on your credit file

If a debt you owed was sold to a collection company, you may find it listed twice on your credit report: once under the original lender and once under the buyer. That happens because the sale is recorded by two different firms, and if they do not link the entries properly it can look as though you owe two separate debts.

The rule is that a sold debt should appear as one default with one balance. Experian states that the lender must make it obvious on your credit report if your debt is sold to a debt collector, so it will not look like you have two defaults¹. The Information Commissioner's Office, which enforces the rules on how your credit file is used, says that if entries look like two different debts, or make the debt stay on your file longer than six years from the original default, it is unlikely to consider that fair².

A default stays on your credit file for six years, and selling the debt does not restart that clock³. If a duplicate entry appears to extend it, that is the point to challenge. You can check your report free with all three credit reference agencies, and you can ask them to correct errors⁴.

Why a sold debt can appear twice on your credit file

When a creditor sells a debt, two firms now have an interest in the same account. The original lender has to close off its own record, and the buyer has to open a new one. If the original lender leaves the account showing a live balance, or the buyer records the debt as a fresh default rather than a continuation of the existing one, the same debt shows up twice.

The rules on how this should be handled are set by the Information Commissioner's Office, which publishes a credit reference framework that lenders and debt buyers are expected to follow. Its position is that a sold debt should be recorded so that it does not look like two debts, and so that it does not stay on your file longer than six years from the date of the original default².

A debt can be sold without your agreement. StepChange explains that the debt purchaser must follow the same rules as your original creditor, and that you keep all the same legal rights⁹. If you are not told the debt has been sold, then the collectors are working for the original creditor, which still owns the debt⁹. When a debt is sold, the buyer should write to you explaining who the new owners are, including the name of the original creditor and usually the original account number, and where payments should now go⁹.

How a sold debt should be recorded: one default, one balance

The correct pattern is straightforward. The original account should show as closed, with the balance changed to zero, and the buyer's entry should carry the same default date as the original. Experian's guidance is that the lender must make the sale obvious on your credit report so it will not look like you have two defaults¹.

Where a debt has been settled or written off, the same principle applies. National Debtline says that after a full and final settlement you can expect to see your account showing as having been closed, with your balance changed to zero to show there is nothing left to pay¹⁰. StepChange says that if a creditor agrees to write off your debt, the balance shown on your credit reference file should be set to zero¹¹. Where a debt is repaid in full, it is marked as either satisfied or settled depending on whether the account defaulted¹⁰.

If the original account still shows a balance after the sale, that is the error to raise. A debt buyer cannot create a second default on the same debt, and it cannot move the six-year clock forward.

Checking all three credit reference agencies

There are three credit reference agencies in the UK: Experian, TransUnion and Equifax¹³. They keep different records, so checking all three is the way to be sure you have covered everything¹³. National Debtline makes the same point: there are three agencies, and they may each hold different information about you, so check with all of them so you do not miss anything¹⁴.

You have the legal right to check your report for free with all three main agencies⁴. A duplicate entry may appear at one agency and not the others, because each lender and debt buyer reports to a different combination of agencies. If you find a duplicate, contact the credit reference agencies to get the entry removed or corrected¹⁵.

How to get a duplicate entry corrected

Start with the credit reference agency that holds the entry. You can ask agencies to correct errors⁵. The agency will contact the lender or debt buyer that supplied the information and ask it to confirm or amend the record.

You can also raise the issue directly with the firm that recorded it. If the debt was sold, that may be the buyer rather than the original lender, and both may need to act: the original lender to close its record, the buyer to make sure its entry carries the original default date. Where a settlement has been agreed, National Debtline advises getting the creditor to agree to amend your credit reference file to show the debt is paid off or satisfied¹⁰.

While a dispute is being looked at, you can ask the agency to add a notice of correction of up to 200 words explaining your situation⁷. You can add a note to say why you did not pay a debt, or that you are in dispute with a creditor about a debt¹⁶. You can also add extra information about your situation, for example if you have had a past debt but have now paid it off¹⁷. A notice of correction does not remove the entry, but lenders see it when they look at your file.

How long a dispute takes and what the deadlines are

Lenders and credit reference agencies have up to 28 days to respond to a dispute⁶. The agency should remove the information or explain why it will not within 28 days¹⁸. Experian says it usually resolves issues in less than two weeks⁶.

If the agency or the firm will not correct the entry, you can raise a formal complaint with the credit reference agency online, and escalate it to the Financial Ombudsman Service if it is not resolved¹⁹. The ombudsman service is free to consumers. In the first quarter of 2026/27 it opened 228 complaints about credit records and 124 about second charge mortgages²⁰.

The ombudsman can ask a firm to correct a credit file, refund extra costs, and pay compensation for distress or inconvenience²¹. Where a lender should have realised that further lending was clearly unsustainable, the ombudsman says it is likely to tell the lender to get the entries removed from the customer's credit file completely²².

Where the lender or debt buyer will not fix it

If the firm will not correct the entry, the next step is a formal complaint. The Financial Ombudsman Service can look at complaints about debt collecting, including cases where someone is not the person who owes the debt, the amount is wrong, there is repeated contact, unhelpful treatment in financial difficulty, or the debt is not enforceable⁸.

You can complain to the ombudsman if a debt collector or creditor has broken the terms of the Standards of Lending Practice, and the firm's own complaints procedure has not resolved it²³. Consumers who feel they were given unaffordable credit, or that the lender acted irresponsibly, may also be able to complain²².

The ombudsman will typically ask the firm for records including a copy of the application, details of any lenders introduced, how the business made its role and legal name clear, fee details, and whether the customer's details were passed to another company²⁴. For mortgage arrears complaints, it looks at issues such as unfair charges, refused concessions, and harassment about arrears²⁵.

If you are struggling with the debt itself, free and impartial help is available. StepChange offers debt counselling²⁶, and National Debtline has guides on getting ready for advice¹⁴. Both are free, and using them does not affect your credit score.