How To Find Out If Your Debt Was Sold
What to do if your debt has been sold to a debt collection agency
03/03/2020
If you've been struggling to pay an account for some time and y'all've fallen backside quite a bit, your debt tin can be sold to a debt collection agency.
Many companies but don't have the resources to chase unpaid accounts, then volition instead employ someone else to do it for them or pass it on entirely. This is because they are better at lending y'all money than collecting it.
Almost unsecured debts; such as credit cards, loans and overdrafts are regulated by the Consumer Credit Act, which allows them to be sold on at whatsoever point after you have stopped paying.
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How exercise yous know if a debt has been sold?
Y'all'll exist notified by both the original company and the debt collection agency that your debt has been sold on. This will normally be by style of a alphabetic character.
The lender can sell your debt on even if yous have fabricated a payment system that has been accustomed. The reason for this is that when you originally signed your understanding the pocket-size print will comprise a paragraph that states they tin can assign the rights for the debt to a third party.
Once you receive this letter of the alphabet, yous will need to contact them to make an arrangement as presently equally possible. They'll likely telephone you afterward writing to you, so you'll have the opportunity to explain your state of affairs and work something out with them – and it's important to remember not to let them pressure you.
Tin can y'all dispute a debt sold to debt buyers?
A lot of the time, your debt has been sold fair and square due to the terms mentioned above. Equally such, this means you don't accept a leg to stand on when it comes to disputing information technology.
The only exception to this is if you want to dispute the corporeality. If you recall the balance is also high you lot can ask for a breakup of all payments and charges; however, remember that at that place will be interest and costs added to the debt for admin etc.
If y'all think the debt you're being contacted for doesn't belong to y'all, you can dispute this with the agency. If they insist that the debt is indeed owed by yous, ask them to send proof by way of the original agreement.
How does the drove process work once my debt is sold to a debt collection service?
Debt collection agencies must follow the aforementioned rules as the original lender, which means they have the same legal rights. As such, this means they do non accept whatsoever extra powers.
If you do non make payments, then they are able to take you to courtroom to register a CCJ confronting you – which will club you to make payments. However, they practise not have the power to transport bailiffs to your door.
They instead tin send one of their own agents to your domicile. At this bespeak they may put pressure on you to make payment, only for the most function are willing to come to an agreement with you.
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Do I have to pay debt sold to debt collection services?
Yes. When a debt is sold to a collection bureau, you so owe the money to them instead, meaning you lot still accept to pay what yous owe. This is the case whether your debt has been sold to an agency, or the original lender has passed it to i to act on their behalf.
As such, it'south of import to contact them straight away to explain your state of affairs and let them know your affordability, especially if you lot're vulnerable. It's a debt collection bureau'southward duty to offer you lot boosted support, if necessary, to assist you pay back the residue owed comfortably.
Tin can the debt collector initiate legal proceedings against me?
Default notice
If you exercise not make payment, the debt collection agency is inside their right to accept you to court. This normally happens if they accept been chasing you for some fourth dimension and have all the same to get a response from you.
Even so, they will outset have to send you a warning letter to inquire you to make payment to avert court, usually in the grade of a default notice.
Canton court proceedings
If the debt is still not resolved afterward this point, then the bureau can put a claim in to the local county courtroom. A County Court Judgment (CCJ) will and so be registered confronting you lot. This essentially orders you lot to brand payments towards the debt, and if you ignore this, then further action may exist taken.
If you do have a CCJ lodged against you for money owed, you should seek legal advice. The best style to avoid this is to arrange a payment plan with the debt collector as soon as possible and try to clear the balance owed.
Exercise debt drove agencies ever surrender?
Debt collectors will chase you for a long time to get payment for what you owe. At the terminate of the day, it is their job to brand sure the debt is paid, and so they will practice whatever they can to collect the balance.
If you practice not receive contact from a debt collector for a lengthy catamenia of fourth dimension, then the debt could become 'statute barred'. This ways that the debt will no longer be enforceable due to breakdown of advice.
The limit on this is half-dozen years. Yet, you must take had no contact from the lender within that timeframe. If a debt collector contacts you lot within half-dozen years, so the debt recovery process is still valid.
What will happen if I ignore the debt collectors?
Ignoring debt collectors' is never the best idea when it comes to dealing with an unpaid account. Sure, you could get lucky and they could surrender, but the chances of this are very slim.
Pretending they don't exist isn't going to work, they're still going to send letters and call you lot multiple times a day. The debt is besides but going to get bigger and bigger every bit they add involvement and charges onto the balance.
This could besides be the steppingstone to the collection agency first courtroom action and a CCJ being registered on your credit file.
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What power practice debt collectors take to recover outstanding debts?
Every bit mentioned higher up, private debt collection companies take the same rights as the lender they bought the account from; they don't have any special powers.
This means that they will call, e-mail and write to you to inquire for payment and encourage you to clear the debt outstanding. It's very important to engage with them as presently as possible to avoid high levels of interest etc. being added on.
Debt collectors do, yet, accept the power to send one of their agents to your door. Information technology'due south important to call back that this is not the same as a bailiff and they cannot take any of your property, they're just there to try and arrange payment.
What should I do if I face up debt collection action?
If your debt has been sold to a debt drove agency, then communication is key. Contacting them to explain your situation will put you in good stead and the agency could be more than willing to piece of work with you to create an affordable payment plan.
In cases where you're unsure who is contacting you regarding the debt, the all-time thing to exercise is to contact the original lender to discover out. If y'all don't want to speak to them, then y'all should seek communication on how to bargain with them.
If you're struggling to bargain with debt collection agencies and aren't sure what to practice, we tin can aid. Our experts are on paw to provide you with free and confidential advice, no matter what your situation is. Contact the states today on 0808 2234 102 or click the button beneath to be connected.
How To Find Out If Your Debt Was Sold,
Source: https://www.creditfix.co.uk/knowledge-hub/what-to-do-if-your-debt-has-been-sold-to-a-debt-collection-agency/
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