Are debts sold to a debt collector?

debtCollector_3

I'm confused

I've read on some threads that debts are sold to debt collectors, I'm currently paying Moorcroft (sp) £50 for my egg loan, to my surpise I got an email from egg saying that my monthly statement was now online, I haven't had an email like that for months and months so I logged on, this is the statment....

your loan £5,079.84

interest rate 0.0% pa

Payment information

next payment due 02 January 2007 (or next working day)

payment amount £44.87

missed payments £169.22

So that means that Moorcroft just pass my payment onto egg....... minus £5:13

Anyway, I thought from readin online that the debt collector owns the debt and I'd have no longer have anything to do with the creditor....... is that correct? Cos my next payment is due on the 2nd Jan 2007......

dexters_mum_2

I think they can 'sell' a debt to a debt collection agency and yes, Moorcroft just passed your money on to them minusing off a bit for themselves.

Can you speak/write to Egg asking if you can make an arrangement for this £50 to go straight to them and bypass Moorcroft, for every £5 they take from your payment, after a year it mounts up to just over one payment per year.

Good luck with everything xx

Tootsie_Roll

dexters_mum wrote:

I think they can 'sell' a debt to a debt collection agency and yes, Moorcroft just passed your money on to them minusing off a bit for themselves.

Can you speak/write to Egg asking if you can make an arrangement for this £50 to go straight to them and bypass Moorcroft, for every £5 they take from your payment, after a year it mounts up to just over one payment per year.

Good luck with everything xx

That's not the way it works but it also raises questions about the online statement.

If the OP pays £50 per month to Moorcroft on behalf of Egg then the full £50 will transfer across to Egg and be applied to the account. It makes absolutely no difference if the payment is made direct to Egg or Moorcroft - Moorcroft will still receive their commision on the payment regardless. The money for this is just a cost incurred by the debt recovery team at Egg and accounted for seperately. There used to be very few lenders who accepted net payments from dca's as it is a nightmare to administer from their end.

This though means that the information on the online statement is incorrect.

silvercar

knowing the way egg calculate payments, I would guess that £44.87 is the minimum payment they expect next month and nothing whatsoever to do with any agreement you have set up with Moorcroft.

debtCollector_3

thanks everyone......

Not that it matter much now, cos I've just sent them a token payment of £1 until i get things sorted with Payplan.......

Oh..... should I have sent the payment to Moorcorft or Egg...... I sent it to egg.......

THE_LONE_RANGER_4

when i was in debt i only dealt with the creditor unless the dca had bought the debt , what the dca made from anything was of no concern to me most creditors use the dca to collect or get a repayment programme set up say what you can afford and stick to it up it when you can afford it

debtCollector_3

So just deal direct with Egg...... ok, will tell Moorcroft to take a walk, hee hee, if only it was that easy

Tootsie_Roll

THE_LONE_RANGER wrote:

when i was in debt i only dealt with the creditor unless the dca had bought the debt , what the dca made from anything was of no concern to me most creditors use the dca to collect or get a repayment programme set up say what you can afford and stick to it up it when you can afford it

It's all very well taking this line but the reality is you are saving Moorcroft money by not even making them process the payment. As I mentioned they will still receive commision on any monies received for your account.

Your call.

THE_LONE_RANGER_4

Tootsie_Roll wrote:

It's all very well taking this line but the reality is you are saving Moorcroft money by not even making them process the payment. As I mentioned they will still receive commision on any monies received for your account.

Your call.

yes but i said it is of no concern to me what the dca are getting, the creditor can give them what ever they like why should i be concerned .