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heres a question...........

If a debt is sold on does the original debt fall off the persons credit file?

Can the buyer of the debt re-register it as a debt or different debt?

Now we all know how it felt to play in the band on the Titanic...


  • mwarby
    mwarby Posts: 2,048 Forumite
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    I think the original debt is removed, the buyer of the debt will pretty much always reregister the debt. 

    The default date of the new debt can’t be any newer than the old debt, and in insolvency should be no later than date you were made insolvent 
  • maxmycardagain
    maxmycardagain Posts: 5,760 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    anybody know a typical percentage a debt gets sold on for?
    Now we all know how it felt to play in the band on the Titanic...
  • sourcrates
    sourcrates Posts: 29,154 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    edited 25 May 2020 at 10:20PM
    The correct procedure is thus, the original creditors entry should show the date of default, and a zero balance.
    The new owners entry will show the same default date, and the outstanding balance.
    Some people mistakenly think they have two defaults for the same debt, they don’t, it’s just the one default, both should show the same default date.
    Debts are bought for pennies in the pound, the exact amount is a closely guarded business secret.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 20,800 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    anybody know a typical percentage a debt gets sold on for?
    There was a whistleblower interviewed a few years back. He said the range is 6-16%
  • ToxtethO'Grady
    ToxtethO'Grady Posts: 342 Forumite
    First Anniversary Name Dropper First Post
    edited 26 May 2020 at 11:34AM
    The percentage of the debt being sold depends on the 'book' of debt and how much work the debt collectors would have to do. I have sat in on a negotiation and it was really small the percentage offered and accepted for the amount of debt. Best analogy in debt circles is with the pence in the pound an IVA has and it will always be lower than that.

    So if 300,000 small debts worth £500K were being sold they'd offer/accept a smaller percentage as there's more work to be done collecting. 15 debts of £500K would have a higher percentage due to, what should be, less work to claim or take further, however bigger debts usually go to court and enforcement a lot quicker than small debts so it's rare they get sold on to DCA.

    Mortgage companies will usually keep the debts for themselves, pass to a solicitors to manage the CCJ or sell them to another mortgage company that is used to debt management/collection.

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