Selling a Disputed Loan Account

charmed-imsure

Just a quick one...

If you have a loan account, can the lender sell the loan on to a recovery agency while there's a dispute on it? I would've thought it wouldn't be legal but if anyone can advise I'd appreciate it.

Rafter

Depends on the nature of the dispute.

If there are legal proceedings pending, then I guess not. However, if you simply have a complaint then probably not.

I'd just write to the collection agency, telling them there is a dispute. Telling them when you last contacted the loan company and copying them in on any written correspondence.

R.

charmed-imsure

Thank you. It's a long story & quite confusing (my partner's story actually). Him & his ex took out a large joint loan & within a matter of days of the money hitting her sole account, she absconded with the money & immediately declared herself bankrupt! (we're talking a £19k loan here). Months on, the loan got sold in her sole name (not sure why in her sole name), got bought back in my partners sole name, then he wrote & asked for the original signed credit agreement (after seeking advice here). They couldn't provide it & instead, sold the loan back on. Later, again, they bought it back! After buying it back & having endless calls with them, they said they had no record of this account at all. This has been in dispute for about 6 months. After 3 months of hearing nothing, there's a joint letter (grrr) sent saying the account has now been sold!!! (what, again?). This letter reverted back to their joint names.

I'm lost with this completely & can't understand how they're allowed to operate like this. Still no record of the original signed CCA.

I just wondered if it was legal for them to sell on a disputed loan?