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Who gets the money?
Joopin
Posts: 30 Forumite
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
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
0
Comments
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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!Personal ISA Contributions Challenge - current £0 (as at 1 April 2014) / target £15,000 (deadline 31 Mar 2015)0
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