Help & Advice please? Debt Sold on to new company

Flumpet24

Hi

Please accept my apologies if this question has been asked before, I am new to the forum and could really do with some advice.

My wife and I took out an unsecured loan (£20k) with Northern Rock (NRAM) approx. 10 years ago and since I lost my business approx. 3 years ago have been paying nominal monthly payments to them (along with our other creditors).

We received a letter from a new company (Marlin Capital) yesterday quoting the NRAM account details and debt saying they had bought it from NRAM and are looking for payment.

Can NRAM sell the debt?
Have you any advice as to how we should approach this?
We are not in a position at the moment to pay anything other than the nominal payments we are already paying.

Many thanks for any advice that you may have

Tixy

Hi and welcome to the forum.

Yes NRAM can sell the debt and it is normal for them to do so at some point. They should inform you of this / send out a notice of assignment. The OFT debt collection guidelines state that it is unfair of them not to.

3.7 Examples of unfair or improper practices are as follows:


g. failing to inform the debtor 30 when responsibility for recovery of a debt and/or the legal right to recover a debt has been transferred or assigned to a (named) third party 31

30 As and when the debtor has been located/identified.
31 See section 82A of the Act for responsibilities following assignment of rights and chapter16 of the guidance produced by the Department for Business, Innovation and Skills (BIS) 'Consumer Credit Regulations: Guidance on the regulations implementing the CC Directive' August 2010 (see Annexe D for link to BIS guidance).


h. failing to provide notice and relevant information to a debtor in a sufficiently timely manner when responsibility for recovery of a debt is transferred or assigned to a (named) third party, such that it impacts adversely on any existing repayment arrangements established

However before you start paying the debt collection agency you should get proof that they have a right to collect the debt.

Once they have supplied that proof then write to them to state that your circumstances haven't changed and you can still only afford £x per month towards the debt.

happy_bunny_2

Yes, they can sell on loans.

What's the current balance, approx?

Is this the only account you are making reduced payments on?

What does the account show on your credit report?

Tixy

You could either send the standard prove it letter https://forums.moneysavingexpert.com/discussion/2607247 or an adapted one along these lines

Dear Sir/Madam

Ref: xxxxxxxxxxx

You have contacted us regarding the account with the above reference number, which you claim has been purchased by yourselves.

We would point out that we have no knowledge of any debt being owed to your company.

We are familiar with the ‘Office of Fair Trading Debt Collection Guidance’ which states that a creditor should inform the debtor when responsibility for recovery of a debt and/or the legal right to recover a debt has been transferred or assigned to a (named) third party.

As we have received no such notification we do not acknowledge any debt to your company.

Yours faithfully





Mrs A N Other

Flumpet24

Many thanks for the reply happy_bunny.

The current balance is approx. £20.5k

We are making reduced payments on all or creditors (11 in total)

The credit report is showing as defaulted in 8/2010 to NRAM, no mention of new company yet

Flumpet24

Tixy

Many thanks for the letter template, we can see what sort of response is generated from them.

Are you aware of how these things tend to play out after they receive our letter?

happy_bunny_2

Ok, Tixys advice is as good as always here

They need to prove they have the account, likely the credit report will be updated in due course.

Once you prove they own it, a CCA request might be in order on a debt that old. Without one that's good in contents and format and signed by you, the DCA tiger loses most of its teeth as a CCJ is out of the question when defended.

Same applies for any other cards or loans taken out before April 2007.

Flumpet24

So you're saying that without a copy of the signed agreement they are unable to collect from us?

happy_bunny_2

Without the signed agreement which Also complies to the prescribed format and contents, then they cannot get a CCJ in court.

You still we the money and they can ask you to pay and perform collection activities, but in reality they use the court threat as the ultimate weapon.

They can't threaten you with a default, as done already.

Let's just say companies are not always great at record keeping, some better than others. And some who were good at keeping them had issues with the agreements being unenforceable in court due to a technicality.

Even if not trying to avoid paying the debts back, CCA requests are a good way of finding out what ammunition a creditor has. So if they say pay more or else, you can say you are out of elses so go away.

The response you get from a CCA request will vary wildly, so best post back for thoughts.

Flumpet24

Thanks for the advice, very much appreciated.

I'll let you know how things progress

happy_bunny_2

CCA request letter here. Maybe remove the bit about acknowledging the debt if still paying etc:
http://forums.moneysavingexpert.com/showpost.php?p=11636295&postcount=5

Worth sending to your other creditors taken out prior to April 2007 also, not for overdrafts mind.

Good luck and keep us posted.

HB