Old Debts Purchased

Jocular_Jock

Can anyone out there help me?

I have received numerous letters from companies wanting payment of debts incurred prior to 2002 for a sole trader concern that ceased trading. Some of this correspondence has been going on for 3 years but none of them has actually taken me to court, although they have threatened this several times. I have tried to read through the relevant threads and these companies first contact me within 6 years. I have denied liability to them all but have several questions.

1. Does a debt have to be assigned to another company before it can legally be transferred, and do I need to be advised of that fact? For example, if a company passes the debt to a Debt Recovery company, do they need to tell me first?
2. If a third party buys a debt of mine, are they a) legally within their rights to claim the full amount, or b) legally able to claim the amount they paid for the debt or C) not legally entitled to be paid at all?
3. What information are they required to supply me with in order to substantiate their claims?

Thank you in advance.

Spire128

You will most likley find that in the original loan agreement that you signed buried in the small print would have be a clause allowing the orginal lender the right to transfer or sell the debt to another party, this clause is your notice that this may happen, and no other notice is required.

As far as your second point the loan status can be as follows

1 Rights and Obligtations are with the orginal lender
2 Assigment to a third party ( such as debt collector) for collection
3 Transfer or sell the loan to a third party including all the rights and obligations of the orginal loan

In all the above cases the full amount of the loan and intrest and charges as set out in the orginal loan agreement, are payable.

Your third point not sure of the answer.

I also note that u say that the loans were taken out by a sole trader, well unfrotunaly in the eyes of the law Joe Bloggs and Joe Bloggs trading as JB Decorators are one in the same, so debts incurred are still valid against Joe Bloggs.

homer_j_3

You should write to them stating that you do not acknowledge the debt and want them to provide you with a copy of the legal assignation and credit agreement.

You need to enclose £1 for them to do this and if they fail to provide this with 12 + 2 days then they have broken their requirements.

Do a search on the forum for "DCA" or "DCA making loan unenforceable". You should find a decent template letter to help you.

If you have the original agreeement. Search my posts (click on my name and find previous posts) and look for unenforceable & voidable loans, it could well be that you should be chasing them and not the other way around.