What happens if an account is sold after default??

Debthelpneeded

Hi everyone,

I have another question I hope you can help with.

What happens if an account is sold to a collections agency after it has had defaulted. I coudn't afford minimum payments due to my circumstances and they have not changed. Can the collections company demand payment or take me to court? Also, how will I know if the account has been sold?

Thanks in advance


Sue

[Deleted User]

You'll receive a notice of assignment, telling you who to make payments to.

The buyer has the same rights to demand payment as the seller had, as they are now the owner of the debt.

Autumn86

If you don't own a car or have a mortgage they are powerless, and extremely unlikely they will take you to court, as it'd be a waste of their money. lol

I advise getting a Debt Relief Order to get the entire debt just written off.

Debthelpneeded

I have a mortgage. What is a debt relief order?

Debthelpneeded

How long after it is sold would I receive this notice of assignment?

[Deleted User]

Autumn86 wrote: »

If you don't own a car or have a mortgage they are powerless, and extremely unlikely they will take you to court, as it'd be a waste of their money. lol

I advise getting a Debt Relief Order to get the entire debt just written off.

Not true - people get CCJ's for things that cost hundreds of pounds or less.

A DRO isn't the way to go at all either

MovingForwards

Yes the new company can send demands for payment.

Yes the new company can issue court proceedings to recover the money, interest and court fees on top.

Yes there are things in your control that you can do.

When did you stop paying the original company?

Debthelpneeded

It was Barclaycard, I contacted them around April last year as I was struggling with re payments and also have mental health issues. they were great, gave me some breathing space and passed me to their support department who had been dealing with my account since. They told me not to worry about payments and that I would default after 6 months on non payment , which was November last year. However, on checking my credit file it says account settled September 2018, Default /Ended. But it says credit in use £6522. The department that were dealing with me said that my account would not be sold and would stay within barclaycard for at least 5 years because of my mental health issues, however as the credit file says account settled in September I am confused, so assumed they had sold in on?? Don't know why it would say that, when it's not settled and default started in November?

[Deleted User]

Defaulting the account doesn't negate you still committing to making payments.

MovingForwards

You can hang on and wait for the new company to contact but come back for advice before doing anything as the members can offer advice as to what to do next.

Or you can contact Barclays and ask them who is now dealing with it.

Are you in a position to make a payment, not necessarily full payment, each month?

Do you have any other debts?

Debthelpneeded

There are two debts with Barclaycard - £6522 and £8000. I also have two cards with MBNA, £3000 and £8000, they are both about to default too.

Can't really afford any repayments, after doing an income and expenditure form with both companies i was -£40