Updraft sold account to Perch capital but never issued default notice or default

ldn83

Hi, wonder if anyone can shed some light on a development in one of my lenders that I’ve been trying to get a default on.

I stopped paying 2 Updraft accounts my regular monthly payments back in March (on advice from the forums on how to manage my debts that I can no longer pay).  After a few months of hassle from Updraft they passed my account over to ACI for collections, I kept ignoring these too whilst waiting for the default.

Then this past week I got an email from ACI telling me that Updraft has sold my account to Perch capital and now the debt is 10k (much lower than original), and that ACI is still managing the collections of the debt. Also the email said ‘As you know’, implying that I was somehow foretold about this but I wasn’t. Also all credit reports across all the agencies (updraft only on transunion) show that the debt is delinquent and not defaulted.

My question is can they sell the account without issuing a notice of default or a default? My updraft account on the app shows the balances as zero now. Have they followed procedure? 

All advice much appreciated, thanks in advance.

ldn83

This is the email I received

RAS

I'd be inclined to ignore ACI in the short-term as Perch may not yet have written to you or updated the credit records.

Mean-time perhaps a SAR request to Updraft might produce some evidence?

ldn83

ACI have said that they are managing the account for Perch now, seems very suspect all this..

ManyWays

How large was the loan at the start and how much had you paid Updraft before you stopped paying? I am wondering where the 10k number came from. 

You can complain to Updraft that they should have added a default date when you were 3-6 months in arrears. Perch will then have to use that default date.   

ldn83

ManyWays said:

How large was the loan at the start and how much had you paid Updraft before you stopped paying? I am wondering where the 10k number came from. 

You can complain to Updraft that they should have added a default date when you were 3-6 months in arrears. Perch will then have to use that default date.   

Approx 8k on one and 7k on the other. Do you think Perch capital bought the total debt at a discount? Question is without a default the debt is unenforceable and no legal action can be brought can it? Want to start paying this back but this whole question of what’s going with the default is puzzling.

ManyWays

Question is without a default the debt is unenforceable and no legal action can be brought can it? 
Why do you think that? It is unusual for a loan that doesn't have payment arrangement to be sold without a default, but not sure why it would be unenficeable. 

agentblackcat

Hi
This is really odd but the exact same thing has happened to me. I have also been ignoring waiting on a default. Been chased by ACI but been ignoring as no default. Now received a letter yesterday saying that debt has been sold to perch and ACI will collect. I have 2 loans with updraft. This letter was only received for 1 loan  of £5658. But still no defaults reported. 
Also received another letter today from ACI demanding over 12000 k which is the total of both loans . Not sure if they can lump them together either. 

ldn83

ManyWays said:

Question is without a default the debt is unenforceable and no legal action can be brought can it? 
Why do you think that? It is unusual for a loan that doesn't have payment arrangement to be sold without a default, but not sure why it would be unenficeable. 

It’s very unusual for a debt to be sold without default. Also they have to notify you if they plan to do so and they definitely haven’t. As it’s an unsecured debt, there has to be a default before anything can be pursued through the courts.

agentblackcat said:

Hi
This is really odd but the exact same thing has happened to me. I have also been ignoring waiting on a default. Been chased by ACI but been ignoring as no default. Now received a letter yesterday saying that debt has been sold to perch and ACI will collect. I have 2 loans with updraft. This letter was only received for 1 loan  of £5658. But still no defaults reported. 
Also received another letter today from ACI demanding over 12000 k which is the total of both loans . Not sure if they can lump them together either. 

Updraft in my experience seem quite sloppy in their conduct, for example they didnt report my first loan with them to any credit agency for almost 2 years which allowed me to get more loans which I shouldn’t have been able to get, seems them being a fintech startup without the checks and balances of a regular financial institution is quite telling.

ManyWays

It's just temporarily unenforceable until a Default Notice is issued. 

One option to look at is an affordability complaint to Updraft, tell ACI you are disputing the debt with Updraft, and in the complaint also ask Updraft to add a default to your credit record. 

sourcrates

People wrongly assume debts cannot change hands without first being defaulted, that is simply not the case.

Debts can be bought and sold as a going concern, at any time, perfectly legitimately and without any need to default.

The only thing a lender cannot do without first defaulting you is start legal action.

All else remains the same, all that has happened is the lender has changed, nothing more, all the terms and conditions of the original loan remain the same. I assume they are still charging you interest?