Yes. It is likely that your original creditor will have registered a default with regard to the outstanding debt on your credit file. When the account is purchased by us, we are legally required to transfer the default into our name.

When you apply for credit (e.g. mortgage, loan, mobile phone or even renting a house) it is likely that the credit provider will request permission to look at your credit file to gain an understanding of your payment history and the likelihood of repayment. Unpaid accounts are usually highlighted on your credit file.

However, as soon as you start making payments or clear the account, we will update the credit reference agencies to ensure your files reflect this. Once the balance is cleared the account will be marked as satisfied, or partially satisfied.