Debt Sold 4 years after bankcruptcy?

ChrisGwynne

Hello

I was declared bankrupt 4 years ago. Yesterday i received a letter from Halifax/Link Financial to say that they had sold my debt and Link Financial will now be retrieving it.

I have checked my bankruptcy documents and Halifax was listed as a debt and the full amount owed.

Unsure how to proceed with this, any help?

fatbelly

Nice move by Halifax. They have sold something worthless and got money for it.

I don't imagine Link will be too pleased when you tell them.

sourcrates

Bankruptcy will include all your debts, those which are known or unknown, when Link write to you, inform them they have bought a bankruptcy debt, and they should refer the matter back to Halifax.

george_112

I have just had the same letter from Link saying they have bought the Halifax debt. I was declared bankrupt may 2020. This debt was included in the bankruptcy 

yoshka123

Same thing happened to me. Bankrupt 2021. Four MBNA cards and two Halifax Credit Cards that were settled by my bankruptcy were sold to Link in September 2024. £17,000 total.
Are Lloyds bank not breaking the law by selling a settled debt like this?

ManyWays

Are Lloyds bank not breaking the law by selling a settled debt like this?
No because the debt has not been settled, suppose it emerges that you inherited a million pounds before your bankruptcy but were unaware of it, that money would be used to pay off the creditors in your bankruptcy. 

george_112

I have sent link financial proof of my bankruptcy but now they have appeared on my credit report showing the account in default. How can I sort this?

EssexHebridean

I’m going to guess you need to write to them again formally complaining about their actions and demanding that they correct your record. @fatbelly will be able to confirm, and also I imagine suggest the timescale that is appropriate for them to deal with this. 

sourcrates

Send a formal written complaint, then allow them the statutory timeframe to issue a final response, which is currently 8 weeks.

If they do not uphold your complaint, or you are not satisfied by their response, escalate the matter to the ICO (information commissionaires office).

You may also be able to complain to the FOS (financial ombudsman service) as well.

fatbelly

The debt is completely unenforceable and if it appears on your credit report should have a default date that is the bankruptcy date or before.

If they tried to enforce it you would have a complete defence. The exercise would be eating into their profits.

Either incompetence or sharp practice by the Lloyds Group. My money's on the former.

I don't particularly link Link but if you want to tell them they've been shafted, carry on. If Link feel they have bought something that is not as described, it's a matter for them.

george_112

I will email a formal complaint tonight. The default date is updated as 16th Sept 2024. 

Thanks for your help!