Debt sold on but no Default

sammyjammy

Trying to help a guy at work but I'm a bit stumped.  Debt was a P2P loan with Ratesetter, defaulted payments in 2017 but debt was never defaulted or reported as anything but up to date.  Has been making reduced payments since 2017.

Debt has now been sold on to Intrum and they are trying to get them to default it by stopping monthly payments.

When default notice is issued I've advised him that he can write and complain and attempt to get it backdated.

Am I right or does the fact it was a P2P loan make a difference?

Grateful for advice.

Sam

sourcrates

P2P loans are not governed by the consumer credit act, so non of the protection contained within the act, either for borrower or lender will apply in this case.

The borrower is governed by whatever it states in the agreement (if any) that they signed.

Normal CCA rules do not apply.

sammyjammy

Thanks Sourcrates, I figured that might be the case, does this still apply if the debt is sold on though?  I know they cannot go for a CCJ if they haven't issued a default notice so is it worth him still withholding payment do you think to try and force this or does it just mean the longer it takes to pay off the longer it will stay on his record (at rate of payment this could be 11 years plus another six to drop off after account closed?

sourcrates

Like I said above, a default notice is governed under sec 87 consumer credit act, the CCA does not apply in P2P lending, so the need for a default notice does not apply to this case.

If payments have been missed, they can issue proceedings according to the civil procedure rules, as and when they wish.

When debts are sold, the new owner inherits all rights and privilege's of the original creditor, so the same rules apply across the board.

He needs to look at the agreement he signed to see what is applicable and what is not.

sammyjammy

Just wanted to update on this, he stopped making any payments to the debt and they issued a default notice back in December, he has written to complain about the date.

Interestingly they have now started issuing F&F settlement letters for 20% of the debt,  Sent one for the last three months stating it has to be received in month, only for it to be followed by another.  He did ask if he could make this in 4 monthly payments but they declined.  I advised him to keep the money back so we are hopefully they make a February offer and then he can pay it off.

After some googling it seems that Intrum are sending out 20% F&Fs all over the place!