Celetelem loan assigned to someone else - can they do that?

AppleCrumble_2

Hi there
I took out a loan from Cetelem (originally I applied for a loan for Halifax and they passed it on this company which is a division of it I believe).

This was in 2001. it was a 5,000 loan over 5 year @ £126 a month.

In 2004 I was unemployed, got into financial difficulty and they said they would restructure the loan at £65 a month which they were taking from a debit card. Which has been happening. A number of times the payment didn't go through if I didn't have enough £ or I had to give them a new card number, but mostly it was been paid regularly.

I've got a letter I received from them dated a couple of months ago, forwarded from my old address, saying that the current balance is £3613 (!!!! I though it was about 1/2 that :-( ) and that they have assigned it to another company, Fairmile Limited partnership. I notice that the payments also haven't gone from my account the last couple of months. The letter was dated 27 July and I have had no contact from Fairmile at all about the debt.

I don't really know what this is about - waht are the consequences of it being assigned to someone else? Does it mean Cetelem have given up on me!!!

I'm also wondering if ultimately the new company accept a reduced offer to pay it off? I am working very hard to raise a lump sum to pay off some credit cards. Should I wait to hear from them or what?

any advice gratefully received.

thanks

jonesMUFCforever

They have sold the debt on to somebody else.
You could make an offer to pay but take care as if they think that you are in a position to repay it all they will probably turn down your first offer. Also get it in writing how the debt has increased over the last couple of years.

furndire

While reading threads on http://www.consumeractiongroup.co.uk/ I've seen quite a few about loans - maybe worth having a look on there.

mrcow

I think you need to find out too what this £3600 is made up of. If you thought that the debt was a lot less than that, then they could have been piling penalties on it (which would really boost the amount outstanding). Ask for a breakdown of the debt.

If they wrote to you at your old address, do they have your current one, as you need to get that sorted to ensure that you are getting ALL communications?

AppleCrumble_2

They should have my new address, I gave them the address in a phone conversation in June just after I moved.

It says that they have 'under a written assignment' assigned the contract to someone else - but I haven't signed or done anythign can they do this?

I'm not really sure why they have done this, I have been paying the debt ...

I am surprised that the amount is so high and I did ask them a couple of times in the past to give me written confirmation of the amount owed and I am sure it was less before ... so i think there may be penalties but I have not been informed of them. hmm I'm very confused

Astaroth

It is possible for debt to be sold and doesnt require the consent of the debtor but the they must continue to follow the existing T&Cs (though these normally have a clause that the T&Cs can be changed given sufficient notice)

AppleCrumble_2

I haven't heard anything since this letter from the old company or the new company, nor demands for payment etc. what should I do? I don't have any information on how to make payments, they were being taken from a debit card and no payment has been taken for three months ...
i'm confused ...