Loan/debt sold on to another company

DaveTheTriffids

Hi,

Within the last 6 months I was informed that one of my loans has been sold on to another company (Hitachi Capital).

I've since heard that there is a possibility that if the company cannot provide signed proof of the loan agreement, then the debt could be un-enforceable?

Is this correct? If so, are there any template letters that I can use to write to them?

(I have no problem at all paying what I owe, but it really gets on my nerves when debts are sold left, right & centre to seemingly shady, fly-by night companies and debt collection agencies, etc!!)

CHR15

I believe they would only sell the debt on if the borrower fails to keep up the repayments.

They wouldn't commit infinite resources to chase the borrower as it costs them money to try to retrieve the payments, so it eats into their profits.

There's no point (from a business perspective) of investing £2,000 trying to get £1,000 back.

Sometimes it's easier to sell the loan for a token payment to someone who is happy to go off hunting and hassling for payments.

Were you behind with your payments when it was sold?

changkra

Yes you are correct. You need to send a letter requesting a true copy of a signed credit agreement enclosing a £1 postal order and do not sign the letter, print your name. There is a letters template thread on the debt free board. Only send this letter if you are behind with payments or you have been defaulted otherwise it will mess up your credit rating and then you will have one hell of a job getting it put right.

DaveTheTriffids

I'm not behind with my payments, so if it's going to mess up my credit rating, I'll leave it - thanks for the info though!

PNPSUKNET

somethings sounds strange to me, if your not behind why would a company sell it to a dca