My debt was sold to a third party company (lowell portfolio I Ltd)

bearstar

Thank you for all your responses I'm now feeling better about it all think it was the instant panic that I thought I was on top of the debt and then felt like I had had the rug pulled from under my feet. I now think I understand how legally I have defaulted on payments despite sticking to my repayment plan ( not fully though) and that they do have the right to sell the debt on. However I would like to check that I am still liable to pay this debt as I said before I've seen posts that say I have no agreement with them yet and so I owe them nothing (posts not directed at me but others who debts have been sold on) and would also like to know if anyone has any information on this company like how pleasant are they to deal with, are they reasonable ect as I did a very quick google search on them and have come across some unpleasant stories say they used scaremongering tactics and lots of phone calls and letters.

I had every intention of paying this debt off so please don't think I am trying to get off it but if this company has brought it for so little and I have no agreement of ever owing them money that is why I'm questioning if I'm liable to pay it or even would they accept a far lower amount off the debt seeing as they would of paid little for it. could someone also explain to me why would JACAMO of sold my debt for so little? like why would they of done that if they have sold it for little but had they let me stick to my payment plan then would of gotten the full sum for themselves it doesn't really make sense to me why they wouldn't want the full balance?

MrsTinks

Yes you still owe this debt - no idea what specific instances you are referring to that might give you the idea you don't?

Jacamo will have decided that on paper they are better off writing your debt off as a loss against a guaranteed purchase price of the debt. It could be say 20% of your debt (pure guess!). That means they can draw a line under it in THIS financial year and it makes their accounting far simpler. Your debt would have changed in their eyes from the big "bulk" debt they have outstanding to a smaller "bulk" of now "high risk" debts. It's all down to business accounting and how that works - please don't worry too much about it - a full explanation would take a VERY long time The primary thing is that you have already become a much much higher risk account because you have defaulted. They don't want to carry bad debt for the next 5 years, it's a business nightmare.

The debt collectors now OWN your original credit agreement. You need to get away from hanging on to this... It's exceedingly rare with debts THIS recent that they will not have had the correct forms at Jacamo. In years gone by it was a very frequent occurrence that creditors hadn't held on to the correct paperwork. Less so as they cottoned on to that people found out they couldn't be held liable for debt not documented.

sourcrates

bearstar wrote: »

However I would like to check that I am still liable to pay this debt as I said before I've seen posts that say I have no agreement with them yet and so I owe them nothing

It doesn't really make sense to me why they wouldn't want the full balance?

Mrs Tinks covers it nicely, but just to add, as i said before, when a debt is sold, the new owner inherits all rights and privileges, so your account now belongs to Lowell, those posts you talk about have long since been tried in court and thrown out.

The selling on of debts is big business, and, unfortunately, perfectly legal, they actually make money twice on your debt, once when its sold on, and again when they claim tax relief on it, original creditors dont have the time or resources to chase bad debts, so they sell them on to specialist companies who do have the time.

Thats the way the system works.