Natwest sold debt to a collections agency after bankruptcy

debtinfo

important to point out that it is not wrong for them to sell the debt on evan after bankruptcy, although the person that buys it is of course subject to all the same rules of bankruptcy, credit scoring etc as the original creditor

neverthesamedaytwice

Thanks for all the advice from all.

important to point out that it is not wrong for them to sell the debt on evan after bankruptcy, although the person that buys it is of course subject to all the same rules of bankruptcy, credit scoring etc as the original creditor

For the sale of debt to take place, I'd imagine the buyer would have to believe that there's the possibility of some kind value involved in the transaction. I'm not sure if anyone would choose to buy a debt of this kind post bankruptcy, as the debt itself would be worthless. If this is the case, why would the sale not be fraudulent? Maybe they sell a huge block of debts, and expect the buyer to check the status of the debts?

Apparently some debts can continue to exist after bankruptcy if they were subject to a court applied charging order; which is a situation that can occur with debts that are secured to personal property (house etc).

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Anyway, I've received a positive result.

CapQuest weren't particularly helpful, so I ended up contacting Natwest Credit Management Services directly. There was a team who were investigating the sale of this type of post-bankrupt debt, and they've arranged for CapQuest to stop pursuing the debt, and (more importantly) to remove the recently applied default from my credit reference agency accounts.

My advice would be to go to the source. The companies who've sold these debts in error, have an obligation (at least morally) to help clean up the mess and often are in the best position to see the whole position.

Thanks all

Luke

fermi

neverthesamedaytwice wrote: »

For the sale of debt to take place, I'd imagine the buyer would have to believe that there's the possibility of some kind value involved in the transaction. I'm not sure if anyone would choose to buy a debt of this kind post bankruptcy, as the debt itself would be worthless.

There are actually a few debt purchasers whose business model is based on buying debts that are covered by a bankruptcy, IVA etc.

Max Recovery as a notable example that many people here have had debts sold to.

The point is that even in bankruptcy, a certain proportion of debts will see a payout by the trustee. e.g. as a result of IPA receipts, asset recoveries etc.

As they can buy large portfolios of these accounts at very low cost, the small fraction that end up having a reasonable payout from the bankruptcy result in a net profit fro the buyer.

From the perspective of an individual who has a former debt bought it can seem odd or even absurd, but from the perspective of the buyer the net result over all is profit.

A dirty and odd business, but there you go.....

fermi

The above ^^^ doesn't really apply to CapQuest.

Looks like Natwest screwed them over either deliberately, or more likely just due to incompetence in including this debt in a "job lot".

debtinfo

Yep a dirty and odd business but someone has to do it, they are really just there to park the accounts until they die a slow formal death.

I suppose its akin to people who buy the house contents of dead people with no family or those that buy up lost luggage

oplus

financial_ombudsman_representative wrote: »

Hello Luke.

I work for the Financial Ombudsman Service - the free service set up by law with the power to sort out problems between consumers and financial businesses. Thanks Magpiecottage, that's right, this is the type of complaint which we can generally consider - we would need to look into whether it was fair in the circumstances for the default to have been added to your credit file. If after complaining to the business directly you remain unhappy - you can contact us on 0300 123 9 123 or at financial-ombudsman.org.uk.

Thanks
Phillipa

We wouldn't need the FOS if the system was regulated properly.