GE money sold debt to CL finance without informing us

orangegirl

Hi, I hope somebody can help us. My partner got made redundant back in december and so called GE money to sort out a payment arrangement with them until he was back on his feet. They agreed to a reduced amount and sent him a letter with the agreement and the dates to make payments. He has stuck to the arrangement and recently got a new job so phoned them this morning to let them know he could go back to the original payments. However he has been told that they have sold his debt onto a company called CL Finance, that he has a default on his credit record now and there is nothing they can do about it.
My question is firstly are they allowed to do this? Especially given that he stuck to the agreement and he had no warning from them that this could happen?
He's very upset that he now has a default on his credit file as he has always had a good payment record and only needed to do this whilst unemployed.
Secondly if there is nothing he can do about it what can CL finance do now about the debt. Do they get him to pay the original loan payments or can they try to get him to pay more each month, or take him to court for the full amount?
Any advice would be greatly appreciated.

chuckley

barclays have done something similar to my friend. do you have proof of the payment plan? also it sounds very suspect they agree a payment plan and then default you... sounds scamish to me especially if they never sent you a letter confirming this.

orangegirl

Thanks for your reply. Yes he got a letter from GE money agreeing to his reduced payments. That's why it was such a shock when he then got told the debt had been sold and that he had a default

marvin

Firstly yes they can sell your debt in anyway they wish (otherwise the problems with parcelling up bad debts with good debts that caused the current problem would never happen). Secondly whether you have agreement or not its still a default and you can have a note attached to it saying you had agreement and the reason why the default happened.