Old Payday Loan

battyboimatt

Hi All,

I had an old payday loan which was taken out a few years ago, the last email I had from them was in 2017

Goodbye


We would like to inform you that Uncle Buck Finance LLP have assigned the legal and beneficial rights, title and interest in respect of the above-referenced account to Asset Collections & Investigations Limited.

Asset Collections & Investigations Limited are authorised and regulated by the Financial Conduct Authority (reference number: 708400). They will contact you shortly and provide you with the Notice of Assignment, confirming the purchase of your debt.

All future payments and correspondence regarding this account must be directed to Asset Collections & Investigations Limited using their contact details below:

I came to an arragnemnt with them due to my mental health and am due to my circumstances only paying them back £1 a month, However I recently I had an email to say that from the 22/08/2019 Asset Collections have assigned all of our rights, title, interest and benefits in and to your account(s) referenced above to Perch Capital Limited. This means that ACI no longer owns the debt. Perch Capital are now the legal owners, however, ACI has been appointed as the servicer of your above reference account(s)

Perch Capital may start to report account conduct information to the credit reference agencies in the next 30-60 days. This will include providing them with information on any defaults, payment arrangments and settlements. To avoid the risk of any adverse reporting to the CRA's please pay your remaining balance within the next 60 days.


This got me thinking that in relation to the account, I have never actually received a default notice from the Payday Loan provider and at the moment it does not appear on any of my credit files. So I contacted the Payday Loan company who responded with the following.

Thank you for your recent email.

Please be advised that there has not been a default applied to this account, therefore a Notice of Default was not issued.

Please do not hesitate to contact us if you require any further assistance.

Regards
Customer Service Department


Where does this leave me? surely if the new company does start reporting to the credit reference agencies then they will have to issue me with a default proper default notice under section 87(1) of the Consumer Credit Act 1974 and surely if I stopped paying the account back in 2017. To me, 2 years to serve a default notice seems a long time

Thanks for any advice

[Deleted User]

If you don't currently have a default and they choose to register one, then you should ask them to date it for a more appropriate time - eg within 6 months of you actually defaulting.

sourcrates

Contrary to popular belief, debts can be sold on without actually having been defaulted, this appears to be happening more regulaly these days, so your account is to all intents and purposes still active.

Again, contrary to popular belief, its at the creditors discretion to issue a default or not, the rules covering defaults are not set in stone, they are issued as guidence, so can be interpreted in different ways, so your debt is very much still a live account, although this new owner may decide to default you if you dont agree terms with them.

If they choose to do that, then you should take advantage of the complaints process and get it backdated to a time more appropriate to your circumstances.


Sec 87 CCA covers the need for a default notice :


http://www.legislation.gov.uk/ukpga/1974/39/section/87

Willing2Learn

...but the guidance is clear, in that an account should normally be defaulted once it is 3-6 in arrears...

sourcrates

Willing2Learn wrote: »

...but the guidance is clear, in that an account should normally be defaulted once it is 3-6 in arrears...

That is also true, but we are seeing more frequently now accounts that have not been paid for some time, being sold on to debt purchasing companies, without defaulting.

A poster named puzzcat, took a similar complaint all the way to the ombudsman a couple of years ago, and they found against him. Apparently written into the small print of most loan agreements is a clause that allows them to sell the account, as a going concern, at any time, as long as a balance remains payable, makes no difference if the account is been paid or not.

This was news to me, as all the free debt organisations were saying this was not possible, and that a default must be issued first, well boys it just aint so, ombudsman sided with the creditor.

Willing2Learn

sourcrates wrote: »

A poster named puzzcat, took a similar complaint all the way to the ombudsman a couple of years ago, and they found against him. Apparently written into the small print of most loan agreements is a clause that allows them to sell the account, as a going concern, at any time, as long as a balance remains payable, makes no difference if the account is been paid or not.

This was news to me, as all the free debt organisations were saying this was not possible, and that a default must be issued first, well boys it just aint so, ombudsman sided with the creditor.

If I remember correctly, Suseka also said that they were not able to successfully backdate all their accounts. I understand it is only guidance. I am also aware that the new guidance wording has changed from the old guidance wording. In addition, now that the default date is being considered the cause of action, this may result in creditors delaying the defaulting of accounts.

sourcrates

Willing2Learn wrote: »

If I remember correctly, Suseka also said that they were not able to successfully backdate all their accounts. I understand it is only guidance. I am also aware that the new guidance wording has changed from the old guidance wording. In addition, now that the default date is being considered the cause of action, this may result in creditors delaying the defaulting of accounts.

Personally I think they do this so the new buyer can continue to add interest and charges, as per the original agreement, they see it as a chance of extra revenue, something they cannot do with defaulted debt.

battyboimatt

Thanks for the Information guys, I can confirm they are not adding any interest or anything, I will keep paying the £1 a month, I will wait and see if they add it to my credit file if they do it should be as late payments and not as a default, because the account hasn't defaulted yet by the looks of it. So will be an interesting one to watch.

sheraaz76

I received same email about a Lending stream loan .They took me to court but the case was dismissed as they failed to provide anything I guess.Loan has been defaulted since August 2014.Case was dismissed in October 2017,In decemeber 2018 Asset an collections assigned the debt to TM legal services and now I received a email from TM Legal services that Assets and Collection has sold this debt on the 22 AUGUST 2019 to Perch Capital ,and Perch Capital has instructed TM Legal services to collect on their behalf...…
And the funny thing...
Perch Captal and Assets and collections are the same.

battyboimatt

If you look at the website of Perch, TM Legal is also part of Perch Capital as is so Asset Collections

sheraaz76

what a jokers lol:D