Question on Assignment of a Debt

Dannydebt

I have just come across an old letter dated 30th October 2007 from HSBC about a Debt I had on a FIrst Direct account back in 2005. It was being repaid via their in house collection team but then they passed to Fredrickson who after a few years passed it to another agency and so on. The Debt has now dropped off the credit report in 2011.

Anyway the letter has the words: I am writing to inform you that the above account has now been assigned to Pheonix Recoveries limited on 5th October 2007. This means the effective owners of the debt are now Pheonix Recoveries limited.

The also mention the balance at the date of the 'Sale'. So does this mean they sold that debt on and were therefore not responsible for it any longer ?.

The main reason for asking is I want to go back to HSBC for their savings rates, but don't want them to remember or to contact the Debt Collection agency again.

fermi

From accounts, HSBC seem to often keep record of those who had bad debts with them, no matter if it is sold on.

If genuinely sold in full assignment, they would not be able to set off against it though.

sourcrates

I had a First Direct account in the early 2000`s, the outstanding debt was for £17,500 approx, it was repaid via an IVA, which ended in 2014, i have since opened a new account, with the same bank, and not had any problems whatsoever as a past customer with bad debt.

happy_bunny_2

sourcrates wrote: »

I had a First Direct account in the early 2000`s, the outstanding debt was for £17,500 approx, it was repaid via an IVA, which ended in 2014, i have since opened a new account, with the same bank, and not had any problems whatsoever as a past customer with bad debt.

I guess an IVA is different here, as it's a formal agreement. So offset is presumably not allowed for accounts included?

I wouldn't touch any bank who I previously had outstanding debt with. Luckily it's Santander and RBS and I wouldn't want to

HB

fermi

IVA, BR, DRO, etc remove any right to a 'remedy' the creditor has against the debt, so they can no longer set off.

HSBC group sometimes keep records and refuse future business. Not always. Just something to bear in mind.