Confused about sold on/bought debts

japanesegirl

Hi my house was repossessed in February. I had an arrangement in place with my creditors one of which was MBNA and the another HSBC. Both of these debts were sold on in July and I have just found out that neither company was aware that my house had been repossessed months before they bought the debt. Is this legal????????

Is it also legal to sell on a debt when you have a financial arrangement in place?

I now have 5000 to distribute between 15000 worth of debts.

HSBC debt is now being dealt with by CL Finance and they will accept an offer.

MBNA is now being dealt with by a company called Marlins. I had written to MBNA 3 times in the last few months to explain about the house being repossessed and also being made redundant and had no response and now I know why.

However, just spoke to a nasty little man at a company called Marlins in Sussex who have said they would accept a 10% reduction. When I pointed out that they had bought the debt for far less than they were asking for it he just said 'its nothing to do with ME' what they bought it for. I was trying to be reasonable and come to agreement.

Any advice much appreciated as just want to get rid.

~Beanie~

japanesegirl wrote: »

Hi my house was repossessed in February. I had an arrangement in place with my creditors one of which was MBNA and the another HSBC. Both of these debts were sold on in July and I have just found out that neither company was aware that my house had been repossessed months before they bought the debt. Is this legal????????

I don't really understand what you mean. The 2 creditors won't be interested in whether your house was reposessed or not so I don't know what you think may not be legal.

Is it also legal to sell on a debt when you have a financial arrangement in place?

Yes, perfectly legal.

GeorgeUK

I wouldn't advise speaking with any more of the DCA's. I would write to all of them making a "full and final" settlement offer. Do not send any payment until you have a letter confirming the amount and that it will be a full and final settlement. I'll try to look out the template letter for you.

I would also state that your house has been reposessed (so that they know you won't have any large assets they can put a charging order on) and that you will not be in a position to offer the settlement again.

I would offer 25% so you can negotiate a little if required - i'll try to hunt down a letter for you.

This is a good example.
http://forums.moneysavingexpert.com/showthread.html?t=1200137

stapeley

Why not go for bankrupcy now , costs around £750 and would be a fresh start .

japanesegirl

I came across something somewhere before that suggested that if you already had a collection arrangement in place and were fulfilling this arrangement that the debt shouldn't/couldnt be sold on.

Bankruptcy - yes have thought about that as an option and if Marlins wont accept an offer then will consider.

Re: letter to creditors - yes please if you could send me the link very much appreciated.