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Can Lloyds sell my debt when I am in a PPI dispute ?

I know that under my loan agreemnet, the bank can sell my debt to a third party. But I believe I was mis-sold PPI with the loan.

I had already complained to the bank about the PPI but they still sold the debt anyway.

I understand that banks will not normally sell a loan when there is an outstanding dispute with the borrower - but I don't know if that is just because it saves hassle (lots of admin with the 3rd party purchaser - the bank would have to buy it back and there may be an argument about the price etc)

or. .... is there any regulation or guidline that stops a bank from selling the debt when there is a dispute ?

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