Debt Assignments - Ts&Cs

HeeBeeGeeBees

Hi,


I'm new here, but a long time in debt


I have a particular debt that has been assigned to a DCA. Looking at the Ts&Cs on the original agreement, I can find no mention of assignment as a possible outcome that has been allowed for. Does this mean that the assignment was invalid, or is it something that is there as a creditor's right without the need to specify it explicitly?


HGBG

sourcrates

Hi,

This is going over very old ground, but basically a creditor can sell, or assign their rights, to any 3rd party, whenever they choose to do so, its more or less standard wording in any consumer credit act agreement.

The new owner inherits all rights and priviligies of the original creditor, all perfectly legal and above board, as long as a certain process is followed.

The creditor should inform you of the sale, in writing, by sending you a "notice of assignment", (please note, a debt does not need to have defaulted in order to be sold), you should also send the new owner a CCA request as a matter of course, as these transactions take place without a shread of evidential paperwork ever changing hands, if they can`t provide the legal paperwork, ie, a copy of the credit agreement, they cannot use to the courts to enforce their rights.

HeeBeeGeeBees

Hi,


What I was wondering was if there had to be something in the CCA Ts&Cs that allowed assignment, or is it just allowed by another law somewhere else. If there is no mention of assignment rights in the CCA, is assignment valid? I think there may also be a couple of other issues with the CCA as well as it only states the monthly payment, number of payments, APR but no total amount to be repaid or interest total. It also has PPI without giving a separate schedule of terms for the PPI, only for the loan.



HBGB

sourcrates

Its usually stated within the terms and conditions on any credit agreement, it could be some terms are missing from your copy, if you wanted to challange your agreement in court it could get messy, and expencive, if you want someone to look at it for you, there is a site called "all about debt" which you may find helpful.

HeeBeeGeeBees

I'm getting rather annoyed by the debt-buying DCA that now owns it for a number of reasons including CRA searches, claims that I don't have a payment arrangement - when I have, etc., so I'm looking into the agreement in a lot more detail than before!

sourcrates

HeeBeeGeeBees wrote: »

I'm getting rather annoyed by the debt-buying DCA that now owns it for a number of reasons including CRA searches, claims that I don't have a payment arrangement - when I have, etc., so I'm looking into the agreement in a lot more detail than before!

Debt purchasors/collectors, send out there usual run of standard template letters, each as bizzare as the last, they are designed to flustrate you into ringing them, its all mind games you see, all they want is your money.

WhenIam64

There is usually some reason for a debt to be assigned. Have you defaulted on the loan with the original provider? Or have you failed to meet the original agreement in some way.

No lender will sell a performing debt at a discount to a debt buyer and lose money on the deal. So there has to be a reason. Can you suggest what it is?

HeeBeeGeeBees

Yes, it was defaulted some time ago. I was sold on almost a year ago, and the buyer has been nothing but hassle. The debt was in dispute with the lender at the time it was sold, relating to PPI, interest added while in DMP and charges added. I've continued the dispute with the buyer, although for safety I've kept up payments for now.

Karonher

With regards to charges and interest they can do that. This is from the StepChange website.

But they're not legally obliged to stop interest, and a DMP can't force creditors to do this, regardless of the organisation overseeing your plan. However, in practice most creditors will agree to stop or reduce interest and charges.

Here are some of the actions creditors could take during a debt management plan:

Reject your DMP offer
Continue to contact you
Add interest and charges
Add information to your credit file
Apply for a County Court judgement (CCJ)

Jonathan_Kelvin

HeeBeeGeeBees wrote: »

Hi,


I'm new here, but a long time in debt


I have a particular debt that has been assigned to a DCA. Looking at the Ts&Cs on the original agreement, I can find no mention of assignment as a possible outcome that has been allowed for. Does this mean that the assignment was invalid, or is it something that is there as a creditor's right without the need to specify it explicitly?


HGBG

Evening.

No, it is always possible to assign your rights under a contract to a third party, unless the contract specifically disallows it.

Why would it matter though? If you did not owe the new party then you’d owe the original one, so you are in the same situation either way.

Jonathan_Kelvin

HeeBeeGeeBees wrote: »

Yes, it was defaulted some time ago. I was sold on almost a year ago, and the buyer has been nothing but hassle. The debt was in dispute with the lender at the time it was sold, relating to PPI, interest added while in DMP and charges added. I've continued the dispute with the buyer, although for safety I've kept up payments for now.

Would it not make sense to settle the account and move on?