EGG and DLC - Help Please

terriS

Hi All

In Aug 2007 Egg managed to get a charge on our joint property (somewhat in dispute but getting nowhere) for a credit card in his name. This was dealt with by Eversheds Solicitors.

The charge was accepted by the judge even though in our opinion the protocol/procedure for the charge was not followed correctly and shoudl not have been awarded.

Anyway we received a letter from Eversheds this week saying that the account was now being "managed" by DLC and we would hear from them shortly.

Of course we have and they are demanding the £5k. We are fine with dealing with DCA's and their tricks etc but what we are trying to find out is if EGG have SOLD the debt to DLC or if DLC are simply managing the debt on behalf of EGG.

IF (and i am kind of hoping they have) purchased the debt then surely this has a major effect on the current charge on the property and that is shoudl now become non and void if EGG have effectively washed their hands of the debt.

Becuase if i was to pay DLC say £3000 (which i wouldnt dont worry) and then sold the house with the charge on it then EGG would receive £5k automatically ??????
Surely thats not right.....

So my questions is have DLC Purchased the DEbt ????

Thanks a lot
Terri

terriS

Any advise anyone, please?

fatbelly

terriS wrote: »

So my questions is have DLC Purchased the DEbt ????

Ask them!

They do purchase debts and, when they do so, they buy all the rights associated with the account.

terriS

Will they tell me the truth though? And if they have bought it, they wouldn't be entitled to the charge on the property as the court awarded that to Egg, so therefore there was effectively no debt for them to buy!!

Egg will get their money if and when we sell the house so surely they cant still harrass us for this, as it has already been to court?

fatbelly

If you ask them, there are only two possible answers:

1. We have bought the debt
2. We have not bought the debt (we're just collecting)

You can ask them and/or Egg to evidence which ever answer they give.

Take it from there and then post again.

h4ppiness

Hi, fatbelly is right, they are not allowed to give false information - ie: if they have bought the debt, they must confirm it. Incidentally, if they have, then Egg will have assigned the debt (and the charging order) to them.

Actually, I don't think DLC routinely buy from Egg, so I suspect they are just acting in a collections capacity.

h4ppiness

Oh, on the subject of enforcement action, in my experience, major lenders such as Egg will first try and secure the debt (as they have here), and then once they know you are not going anywhere, they will try and actually collect the debt (you may find that if you repeat genuine offers you have made in the past, they will actually accept them this time). If they think you are earning a decent wage, they may take further enforcement (attachment of earnings or Bailiff) - If you have lots of debts, you could apply to the court for an admin order including all the debts you have. This is a bit like a debt management plan, but administered by the court (which makes it much better as any lender included in the admin order CANNOT take any further enforcement action - you just make your monthly payments to court, and they distribute it amongst your lenders

fatbelly

Good points, H4ppiness.

I was going to save some of those for later but it is true that, because a debt is 'secured' it does not stop the creditor from collecting or even enforcing the debt.

On the Admin Order point, they don't get mentioned often on this board but they are brilliant if you meet the qualifying criteria which are:

one or more ccjs
more than one debt
total indebtedness less than 5k

I have had many clients pay £10 per month for three years and get the remainder of the debt (up to 5k) written off by Admin Orders.