Debts that are sold

dktreesea

If a debt is sold, what is the debtor's obligation to pay the new owner of the debt, given there is no contractual relationship between the debtor and the new owner of that debt?

matttye

The contract is bought along with the debt; you have the same obligations as paying the original creditor.

I'm talking about England and Wales here; I'm not too sure about Scotland, but I'd imagine the same applies.

happy_bunny_2

Whats the debt?

How much (approx)?

When was it taken out?

As said, they can sell it on.

vikingtraveller

wasn't it they could get third party people involved, but as the debt is sold onto another company its not really having a third party "involved" because the owner of the debt (ie bank) has washed their hands of it, so this new party can just demand the original amount?

say if i bought someones debt from the bank, what authority would i have to demand payment if on the contract it only states a third party and not being sold, but i suppose its all unique to each contract and how they word it i suppose

dktreesea

I have a friend in this situation. She owed money to a bank who have on-sold her debt. The new owners of the debt, some obscure collection group whom she has never heard of, have sent her a Notice of Assignment and a letter of demand. But the bank themselves have not written to her advising the debt has been sold. As she says, any Tom, !!!!!! or Harry could draw up a notice of assignment. Who is to say this is a genuine assignement of the debt or just some con artist trying it on?

Her concern is that this new lot could obtain a charging order against her house (the rules on this for unsecured debts have recently changed.) I had the impression that this still requires a CCJ to be obtqained first.

VitaK

She could put her mind at rest by giving the bank a phone call, to confirm it was sold to the collection company. The best she can do is negotiate a resonable paymentplan with new creditor and don't miss any payments.

happy_bunny_2

If the debt was taken out before April 2007, then send a CCA request. They need the signed original to get a CCJ. Does not apply for overdrafts

I thought you still needed to get a CCJ before charging order? I thought the amount of the debt decreased to be able to get one.

Otherwise, you would be able to get a charging order without proving the debt is enforceable.

Edit:
DCAs can send out notice of assignment for some banks, so I read on here.
Best call the bank as suggested, to confirm it.