Bank sells debt with payment plan

GinBin_2

I have had an old debt that I was paying off on a payment plan and then the bank sold this debt to a collection agency. I informed the collection agency I was in a payment plan but they still sent the usual nasty letters. In January 2013 the bank stopped my payments and when I enquired why I was informed that the debt was now fully paid and the account closed. The collection agency would not accept the paperwork from the bank so I wrote to the bank for an enquiry. I received a letter dated 6 March 2014 ( yes it took this long to respond!) and the bank have stated that they had every right to sell the debt and my loan was not settled and still had a balance. The letter issued stating the account was now nil was incorrect and should not have been sent. However, the bank have made arrangements to pay the collections agency the outstanding balance. I just wanted to know if this is legal? Can a bank sell a debt when you pay religiously every month an agreed payment plan and how can a bank pay my balance but state that they are not in the wrong? I would appreciate anybody's view on this. Should I challenge the bank anymore or just accept this letter?

FireWyrm

I suspect that what has happened is that you have been wrongly advised by the bank. When a debt is sold, it is then marked as zero (bank accounting processes) and therefore would appear to be 'settled' as far as the customer service agent you spoke to believed.

So, the question is, how much was the outstanding debt originally, how much did you pay and do you think you have really paid it off?

What does the DCA say you owe and where did they get that figure from?