Who gets the money?

Joopin

Just a quick question.
If a debt collection agency takes over a credit debt and end up going to court who gets the money? Is it the orginal creditor or the agency?
Thanks

pivotalgubbins

As far as I understand it, the collection agency will 'buy' the debt from the original firm for a certain percentage of the total owed. So, for example, if you defaulted on loan with a balance of £10,000 remaining and the original company gave up hope of reclaiming this, they may be willing to sell it on to a third party for say, £5,500.

Now, don't go to much on the percentages, I haven't a clue what they'd be and I'm sure if differs from case-to-case, but the principle is the same.

I hope that helps!