Lowells / O2 / Assignment

Galloglass

Would like clarification on the rules about debt assignment. Beef with Lowell.

Basic outline is one of mine, has received a letter out of the blue about an O2 debt threatening legal action. Debt is an O2 contract which was opened online with one payment made and then nothing. So it was passed on or sold one (not sure which) to Lowell Portfolio 1.

Replied to Lowell for a SAR and nowhere in the SAR is reference to a letter of Assignment even though there is an overt threat of legal action, CCJ's, attachment orders, bailiffs yada yada yada. In addition the SAR just shows a list of items rather than copies of the documents themselves. 

Question is should there have been a letter of Assignment?

The question is academic, as the family member has no association with O2 or the address used. No association with the account used for payment. It was a fraudulent ID and address used, even though there is a trace** on family member's credit record at the time the contract was taken out showing their actual address with no association to the fraudulent one. 

How should Lowell proceed once they have a reply stating it is a fraudulent debt. Should O2 get a data rectification request.

** There is also a trace on the credit record showing a trace by a bitcoin seller. Should the family member be advising their bank?

sourcrates

There are two types of assignment that a creditor can make – Legal and equitable.

Both of them fall under the Law of Property Act 1925 and both require the creditor to notify you of the change in writing.

A legal assignment gives the purchasing party the power to enforce the debt. You will also then make payments to this company instead of the original creditor.

When a debt goes through an equitable assignment, it is only the amount owed that is transferred. 

In these instances, the purchasing company cannot enforce the debt and the original creditor will still retain their original rights and responsibilities.

If notice has not been appropriately given, then there is no financial penalty as such, however the party to whom the debt is assigned will not be able to enforce the debt in the Courts and get a judgment order if needed. 

If the debt is as you say, fraudulent, then that is a separate matter altogether, you would continue to deny the debt was yours, and either the matter would end up being settled by a judge or the whole thing would be dropped.

Galloglass

Appreciate the reply.

Thought there was the need for the letter so have passed the issue back to Lowells with the usual prove it, debt is denied, data rectification request and perhaps FCA if they hadn't followed CONC - though I couldn't see anything in there about fraud and its effect on a third party