"Write Off" your debt companies

AL2009_2

Has anyone heard of transferring debt?

There are companies claiming that you can transfer your debt to them (for a fee, typically 10% of debt balance and £250/£350 upfront for each credit card/loan).
They take legal ownership of the debt (unenforceable credit cards/ loans) & they deal with the lenders directly as the debt is under their name.

Is this legit?
Can you really transfer ownership of debt?
How would this show up on your credit file?
Has anyone used such companies?

Ames

I've never heard of this and it sounds extremely dodgy to me.

SueP19

I echo that, the saying goes "you never get something for nothing".

I would be very careful and read the small print or hopefully someone who knows about these things will come along

AL2009_2

Ames/SueP19- I have sent PM with the companies website

SueP19

Thanks for the PM

It all looks wonderful, I did note that it buys debt on the idea that it can reclaim bank charges etc etc.

The terms and conditions are not listed on the site, couldn't see them, so I think it would be best to wait for a legal buff.........I am not sure if you are allowed to transfer your debts in the terms and conditions of your credit card???? This subject really needs someone more qualified than me............keep bumping til they come along

AL2009_2

I thought that initially....

but what they do is charge a fee £350 (£250 for subsequent card/loan & is refundable if they do not take on the debt) and 10% of the outstanding balance

so for a £10,000 loan it would be £350 + £1000 fee to them (plus whatever they can reclaim).

xlcr

I notice that all these and similar "offers" only refer to contracts set up prior to April 2007. What's the significance of this date?

Tixy

xlcr

The legal requirements of a consumer credit agreement changed after April 2007. The requirements were much stricter before this date and some lenders did not have proper agreements in place. More recent agreements have far specific regulations and lenders started being more aware of the rules.

SueP19

AL2009 wrote: »

I thought that initially....

but what they do is charge a fee £350 (£250 for subsequent card/loan & is refundable if they do not take on the debt) and 10% of the outstanding balance

so for a £10,000 loan it would be £350 + £1000 fee to them (plus whatever they can reclaim).

I understand what you are saying but the sums do not add up.

Take the 10k debt, they will make about £1350 from you and what they can reclaim??? Say the card co or loan co will settle for a full and final of 40% of the debt. That is still £4000 os on the loan minus your fee of £1350, that means, for the debt buying co, to break even they must make at least £2650 on reclaiming charges/interest................. the margins are too small.

There are too many un-answered questions.................how long do they take to tell you they won't accept you, what happens if the debt co doesn't pay it..............I can see this being a debt that grows and in the end is returned to its original owner!!!!!!!!!!!

Legal Eagles are needed........please

Tixy

I agree I just don't think its possible to transfer ownership of you debts. In most T&Cs it will have something along these lines in it.

I don't think this is the way forward - I personally wouldn't go near it, it sounds very dodgy.

If you are struggling to make your minimum payments each months I would say there were better ways to tackle it (such as setting up a DMP or cutting back on expenditure or requesting the CCAs yourself and seeing if they are unenforceable - if they are then consider making a FF settlement offer direct to the creditor/DCA)