Debt Camel

Answers to questions about debts and credit ratings - in plain English!

Help! My debt has been sold to a debt collector

If you get a letter saying that Big Bank has sold your debt to Snake & Weasel Debt Collectors you may be very worried.

This article answers questions about what has happened and how it will affect you. Will the debt collection agency (DCA) be horrible to deal with? Is it legal to do this? Do you still have to pay the money? What about your credit record? What if you don’t owe the money/

fat cat with a letter headed "DEBT"Has your debt really been sold?

Sometimes a lender will appoint a debt collector to try to collect the money for them. This isn’t a “sale” – you still owe the money to the original lender and none of the rest of this article is relevant.

If you aren’t sure what has happened, the best thing is to contact the original creditor and ask them if your debt has been sold or not. If you are worried and don’t want to talk to the creditor, phone National Debtline for advice about the letter.

Is this legal? Why wasn’t I asked?

When a sale happens, everything about your debt – all the terms and conditions – remains the same, except that you now owe the money to the debt collector who has bought the debt, not the original creditor.

You won’t be asked to agree to the sale and you can’t object or stop the sale.

You agree to the original terms when you borrowed the money or opened the account. In the small print there will have been a clause that said that the lender can “assign his rights” to a third-party. This is the legal term for a “sale”

(There is one exception here. If your lender subscribes to the Standards of Lending Practice and if they had previously been shown evidence that you have mental health problems, your debt should not have been sold. Go to your local Citizens Advice if you would like help with this situation.)

Your debt can be sold if you are in debt management or you have an arrangement to pay. It may not feel fair if the lender accepted your monthly offer and you are making the payments as agreed, but legally the lender can still sell the debt.

How much was my debt sold for?

That will depend on the state of your account. A debt where you have paid token payments or nothing for a long while may have been sold for very little, just a penny or two in the pound. If you are making regular payments then it will have been sold for more.

You won’t be told what your account was sold for. The sale is a commercial agreement between the seller and the buyer. This may seem annoying, non-transparent or unethical, but the debt collector and the original lender are not doing anything wrong by not telling you the sale price.

The price the debt collector paid for your debt is irrelevant to you. It doesn’t affect the amount that you now owe – you still owe the full amount but now to the debt collector.

If the lender has been paid, why do I owe anything?

The original lender has had the debt settled by the DCA. But you now owe the money to the DCA instead.

Think of this example. You borrow £200 from your sister for some car repairs, agreeing to pay her back £50 a month. But she suddenly needs all the money immediately, so your dad gives your sister the £200 and you repay your dad instead. Same debt, same repayments. You borrowed from your sister but now you don’t owe her anything but you do need to repay your dad.

This is pretty much what has happened with your debt being sold.  Your debt stays exactly the same, you just owe it to a different person.

(NB The above example isn’t an attempt to explain the legal contractual obligations – it is an analogy illustrating why you now have to repay someone else. See “Is this legal? Why wasn’t I asked?” above, for the legal points.)

I want to carry on paying the original lender

You can’t do this. You don’t owe any money to the original lender anymore.

Will the debt collector be difficult?

You may find that debt collectors are as easy to deal with as the original lender. Indeed they may be more likely to freeze interest or accept a full and final settlement offer!

If you had a payment arrangement with the original lender, for example in a debt management plan, you just need to offer the same amount to the debt collector.

There are regulations to make sure that consumer credit debt collectors behave fairly. All debt collectors handling credit card and loan debts have to be regulated by the Financial Conduct Authority and if you have problems with one, the Financial Ombudsman will look at your complaint.

Unless you ignore the debt collector, it’s unlikely that you will get phone calls at work.

But I now have two defaults on my credit file!

Debts are usually already defaulted before they are sold. When it is sold the original creditor will mark the debt as settled with a zero balance owing and the debt collector will add the debt with the same default date that the original creditor used.

So now there are now two debts with defaults on your credit record which looks bad.

But the total of all your debts is right – the debt isn’t being double counted because one of these says that there is zero owing. And when your credit rating is calculated, the original debt is ignored, so your credit score will not get worse because you now seem to have two defaults.

If the debt collector adds a default date which is later than the original creditor, this is wrong. What should the Default Date for a debt be? explains how you can get it changed.

Can the debt collector take me to court?

Yes. The debt collector now has all the rights that the original lender had and this includes applying for a County Court Judgment (CCJ).

You don’t have to worry that this is going to happen straight away. The debt collector would rather reach an agreement with you for monthly payments and not have the cost and bother of going to court.

But in 2019  there were more than 100,000 CCJs a month in January-March . Half of these CCJS were for less than £650 – it seems that debt collectors are going to court more often and for smaller debts. So don’t ignore debts or you may get a CCJ.

Has this reset the 6 year period for becoming statute-barred?

No. If the debt isn’t yet statute-barred, the 6 year period carries on, it doesn’t start again after the sale.

But read Statute Barred Debt – Common Questions because statute barring is now more complicated by a recent court ruling in January 2019.

A debt that is already statute-barred will continue to be so after the sale.

The letter doesn’t say what the debt is!

If you get a letter that might be about a debt but it doesn’t give any details at all, it is just asking you to call them, then this is a “fishing expedition”. They don’t really know who the debt belongs to and they are hoping someone will give them their details (date of birth, previous addresses) that will match.

You can usually ignore these vague letters – see Prime Location Services – do I have to call them? for an example.

I don’t owe this money

If the letter mentions a debt which you do not owe – perhaps because you never borrowed from that lender or because you have already repaid it – then don’t ignore the letters but reply telling the debt collector to Prove It!.

You may need to be persistent. It is the debt collector’s job to show you are the borrower. You don’t have to prove you aren’t.

I am in a DMP, what should I do?

If you have a debt management plan run by a company, tell the DMP company. They will switch your monthly payment to go to the debt collector.

If you are running your own DMP, you need to cancel any standing order paying the original lender, offer to pay the same amount to the DCA and ask for their payment details. They may ask you to provide a new Statement of Affairs.

If you have been ignoring this debt, this is a good point to review your whole situation and your possible debt solutions.

More Debt Camel articles:
What are your possible debt solutions?

A simple overview of your debt options

Threats of court - are debt collectors bluffing?

Threats of court – are debt collectors bluffing?

Payday Loan Refunds

How to get a payday loan refund!

Comments

  1. Hi

    Have just received a call from GE Money to advise that the information i received concerning a default was incorrect(same details were given to me by 3 members of staff) ie DEFAULT NOTICES ISSUED AND NO DEFAULT WAS EVER ISSUED? I find this strange as l was on the understanding when 3 payments were late a default is issued ,so ge money were reporting on my credit account from 2011 late payments x 6mths they sold the account to Arrow Global in 2016 who have continued to report this same information
    is this against the law

    Reply

    • Well it’s not against the law but you could reply saying it is against the ICO guidelines and so ask them to add a default back then, or you will send your complaint to the Financial Ombudsman. make sure they are treating this as a complaint and say you want a reply in writing to you.

      Reply

  2. I spoke to GE MONEY they advised there must have been a valid reason as to why they did not default our account , they also advised it was continusly behind with payment therefore I will write to them requesting a valid reason and lodge a complaint

    Reply

    • “We did this so we are sure we must have had a good reason” oh well, send them a formal complaint and ask them to add a default date. Also point out you feel their customer service has been very poor as you have been told three times that GE had added a default, so either their systems are so poor that customer service can’t see what had happened, or they didn’t bother to check the details at all.

      Reply

  3. Hello.
    Some advice needed please. I’ve been contacted by Lowell’s. I’ve contacted them and the debt is from British Gas from a flat I own. I have never lived in the flat as it’s always been rented. The outstanding bill is for £522.19 for gas/electric. I’ve contacted the letting agent as this flat has been fully managed by them for the past 12 years. The bill covers a time when the flat was empty. It is from 14th Nov-15th Dec 16. It appears that the letting agent has given British Gas my name, but the bill was sent to the rented flat. I’ve never received a bill. Firstly a bill for £522.19 for a month for gas/electric is ridiculous. An empty flat would at most use £20. Secondly it could well be that the letting agents have given the wrong meter readings. I have asked for the bills to be sent to me, through the debt agency, and I’ve also asked the letting agent for the meter readings. Is there anything else I can do? I do think that the letting agent is at fault as to put a bill in my name and not tell me is stupid and the outstanding amount is just ridiculous. The debt agency have asked me to make them an offer to settle, but i want to explore all my options first. Thank you.

    Reply

    • Pointing out that a bill of that size for an unoccupied flat is highly unlikely seems the best approach. I suggest you tell the letting agent to resolve this as the meter readings cannot be right.

      Reply

  4. Hi Sara – hope you can help with this one. Im in a DMP and currently in the process of trying to seek interest refunds on pay day loans with a number of companies. The majority of my DMP is with for a loan taken out with Barclays circa 2010. There is a default on that account and the debt does not show up on my credit report. I believe the debt for the loan has been sold to PRA group – and payments are being made to them through my DMP each month.
    So my question is – If I ask PRA for a CCA request what are my options? If they can produce it does that mean the debt is enforceable even though it was defaulted years ago? Of if they cant produce it do I just stop making payments full stop – or ask for a settlement fee?
    DMP if for 9.2k in total – Debt with PRA is approx 8.5k of this.
    And if the debt does not show on my credit report – will making a settlement payment show up at all?
    Hope that makes sense

    Reply

    • “If they can produce it does that mean the debt is enforceable even though it was defaulted years ago? ” yes – this debt will never become statute barred because you are making payments to it. the fact it defaulted over 6 years ago and doesn’t show on your credit record is not relevant.

      ” Of if they cant produce it do I just stop making payments full stop – or ask for a settlement fee?” That’s up to you. You can just stop – there is a risk the CCA may later be found but you may think this is tiny! Or you could offer a very low amount to settle it.

      “if the debt does not show on my credit report – will making a settlement payment show up at all?” no, it will never reappear.

      If you ask for the CCA agreement, can you come back and say if this is successful? Other people will be very interested!

      Reply

  5. Hi,
    I’ve had a letter today to say that PRA Group are now the legal owners of my NatWest loan (debt) which has also been managed by Wescot for 18 months. Can I find out if NatWest sold this debt and for how much? Can I send a full and final settlement offer?
    Laura

    Reply

    • NatWest have sold the debt – they will confirm that if you ask. But they won’t tell you how much for – you have no right to know that.

      You can send a F&F offer if you want – how long ago was the account opened, how long ago did you default and are you paying anything to the debt at the moment?

      Reply

  6. Hi All
    I’m sure this has probably been asked before so apologies if it has. I owe money to Tesco CC and the debt was sold to Cabot. I submitted a claim for mis-selling PPI and eventually they have provided a figure for refund under the Pleven rule, however they have suggested that the refund will go directly to Cabot. Can they do this?

    Reply

  7. Hi,
    I have been in a DMP since 2013 with 12 creditors, some defaulted me early on and these are already dropping off my file. I have one account that I’m unsure what to do about, it was originally a creation credit card that was sold to Lowell in 2017, it was never defaulted. It is showing on credit file as upto date with a balance of £2000 but a credit limit of £0, this lowers my credit score as my balance/ credit limit ratio is really bad!
    When starting the dmp creation agreed a reduced payment and dropped the interest so that when I paid £16 they still charged £15 interest. Every few months the agreements would expire and I would reduce what I was paying as my situation got worse, each time they still charged interest so that I was only reducing the balance by less than £1 per month. Between January 2013 and when it was sold to Lowell in 2017 I paid over £300 but my balance only reduced by £4 as Interest charges were being added along with some other charges.
    My question is should I ask for a backdated default to be added? ICO guidelines at the time say when 3 to 6 months in arrears a default should be added but, the statements I was receiving didn’t explicitly say I was in arrears. Does not keeping to the original terms count as being in arrears? Also I think the ICO didn’t see temporary arrangements as a long term solution so should they have defaulted me because my situation wasn’t improving after years of payment arrangements?

    Reply

    • Yes you should ask Creation to add a backdated default. Also I think you should complain about the way they kept adding interest – see https://debtcamel.co.uk/creditor-wont-freeze-interest/. I would send these as a combined complaint but make it clear that you are are complaining about 2 things and what you want them to do to settle each. Send the complaint to the Financial Ombudsman if they refuse.

      Reply

  8. Hi

    I’m currently on a DMP which has been running since June 2016. All of my creditors bar one have defaulted my accounts and backdated these which is what I want as I plan on remortgaging in a few years.

    The debt that hasn’t was with NewDay but was sold to Link Financial. This was sold to them in August 2017.

    On 30.01.19 I put in a DSAR with aqua asking for information about when the account fell into arrears and if the account was defaulted to which I’ve never had a response.

    I spoke with Aqua on 25.01.2019 and was informed the account defaulted on July 2019 and they would send me confirmation of this. Again this wasn’t sent and they confirmed it wasn’t.

    I have spoken to Aqua today and was categorically told the debt has been sold so should have defaulted. The advisor called the purchasing team at link who advised there were a number of accounts were sold to them but Aqua had made a business decision to not default the accounts.

    So now I’m stuck between a rock and a hard place as Aqua no longer own the account so wont default it but I understand the default needs to be the original creditor.

    I really don’t know what to do moving forward as the debt is showing on my credit file with link as payments up to date and if the default is not backdated, will appear when I look to remortgage in the future.

    Do you have any advice on where to go from here?

    Thank you.

    Reply

    • Put in a formal complaint to Aqua, saying they are treating you unfairly by not adding a default and say you will take the complaint to the Financial ombudsman if they do not add a default. Also complain that you have been misinformed twice by their customer services team who told you that it was defaulted. See https://debtcamel.co.uk/debt-default-date/.

      Reply

  9. Hi I went on a debt plan with Harrington brooks end of 2015 with 3 debts. I started missing payments as I was jobless and in an abusive relationship. I then had my debt sold on. Luckily my interest froze with all 3 and I continue to pay minimum. The only thing is am fed up and wondering shall I pay them all off by want a decent settlement payment without it staying on record. I pay £5 towards £350 payment. £23 for about £600 and £59 toward a £300. These are what’s left. In a better situation now but really want to start being financially stable now.

    Reply

  10. Hi there,

    A similar question to one above, but I’m just seeking clarification.

    I have just been awarded some PPI compensation, by RBS for missold PPI on a loan. It was front loaded PPI added to the interest rate with Pre ticked boxes. So that was straightforward. I’ve been told to expect payment by the 22 April, but to be aware that the payment might be affected if I have been made insolvent, or have debts with the RBS group.

    I did have debts with the RBS group until quite recently, however they have sold my accounts to the PRA group and have told me I no longer owe them any money and that I now need to deal with the PRA group.

    Can RBS now legally pay the compensation money to the PRA group instead of me? Would this be written in the deeds of assignment? I can’t see how that would be legal, as I no longer owe the RBS anything?

    To my mind it would be like the bank seeing I owe British Gas money and then paying that bill off in favour of returning the money to me.

    Thanks in anticipation.

    Reply

    • I can’t say what will definitely happen. But in this sort of situation it is common for the refund to be used to reduce your outstanding balance on the debt with the debt collector. The legal “right of set off” still applies when a debt has been sold.

      Reply

    • Hi, I pay to a debt collector for a loan I had with natwest (RBS GROUP) and I have just claimed for PPI, they said exactly what you were told, I thought I wouldn’t receive the compensation and was surprised when the fu amount was deposited into my bank. So, fingers crossed, you should receive your compensation too

      Reply

  11. Hi Sara Re July 3, 2018 at 10:30 pm comment
    Sent letter requesting CCA from Capquest but no response. All went quiet except for a few phone calls-not answered. Then a few more letters increasingly threatening. On 30-3.19 letter from Capquest saying basically they think my financial circumstances will allow me to pay considerably shorter period… “should we not hear from you by 9/4/19 we will pass your account to one of our solicitors to consider commencement of legal action”. Should I resend the CCA request. Foolishly, I rushed off the previous one without getting it signed for. Debt £24k.- no longer on credit reference.
    worried sick about this one.
    Cabot same day offering 70% off Lloyds overdraft ~£14k and CC ~£3k =~£5.5k which my brother might help with. They are offering 30 days to decide and say partial settlement (obviously won’t go on my credit record but record is irrelevant) and account marked as nil. Can they then sell rest of debt on?

    Reply

    • Did you enclose a cheque for £1 when asking for the CCA agreement? If it was cashed, that is a good sign they got your letter…

      Otherwise I suggest you send a new request and send it recorded delivery. Use the suggested format in here https://debtcamel.co.uk/ask-cca-agreement-for-debt/. Do not deviate from the template and do not complicate your request by adding anything else eg about data protection.

      The Cabot CC you could also ask for a CCA?

      They shouldn’t sell on a debt after a F&F but it’s best to get this in writing, see https://debtcamel.co.uk/debt-options/less-common/full-final/.

      Really it would have been better to have followed up the CCA request with Capquest earlier. if they can produce the CCA agreement, you may regret offering Cabot 5.5k. You may want to go slow on the Cabot offer until you know more about the Capquest situation.

      Reply

      • Thanks, Sara
        Yes, it did go with a PO but I can’t find the slip; I will send again. Cabot have been fair to deal with; they have given adequate time although it is mostly not CC debt.

        Reply

        • Sent CCA request today to Capquest.
          As Cabot debt is 80% overdraft did not send CCA request to them. If Cap quest offered 30% settlement I would go for it.

          Reply

          • Sent the CCA request as soon as I got the letter and used registered post. They haven’t acknowledged but have sent a letter dated a week later saying as I hadn’t been in touch their solicitor would be contacting me shortly.
            Should I be doing anything, urgently?

      • Letter received back today from Capquest. They say they don’t accept they are the creditor envisaged by the CCA 1974 statute but they are willing to assist in obtaining such. They say they will now process the request of docs from the credit or and will revert in due course.
        They say they are suspending collection activity pending provision of the docs.
        They also are trying it on again by saying they have returned my £1 (not enclosed) and if it’s not received to contact them.
        Should I just now wait? Sounds like they don’t want to accept the request legally.
        Am I digging a hole, Sara?

        Reply

        • “They say they don’t accept they are the creditor envisaged by the CCA 1974 statute” this is nonsense – ignore it.

          “They say they are suspending collection activity pending provision of the docs.” good

          “They also are trying it on again by saying they have returned my £1 (not enclosed) and if it’s not received to contact them.” lots of creditors do now return the £1, but because you provided it you have made a valid request for a CCA and they can’t get out of it by not taking the money.

          Yes, just wait. This all sounds perfectly normal.

          Reply

          • Many thanks, Sara, for your advice and support. I hope I’m not the unlucky one they can find paperwork for.

          • Hi Sara. It’s now about 35 days and Cap quest have said they are still looking into my query and waiting for a response from MBNA. Sorry for the delay etc. … …they’ll keep me updated and let me know when they’ve had a response.
            I’m waiting impatiently. I wonder if this is a good or bad sign.

          • Got another letter from Capquest saying they are in regular touch with MBNA but have not yet had a response to their request. How long do they have to provide the information. It’s been 3 months now.
            Cabot offer has expired, sadly. Many thanks.

  12. My now ex husband while divorcing me managed to add a bill for a credit card that was in his sole name. I had used a card issued in my name 2 weeks after he left me as I had returned from my mother’s funeral to find he had emptied the garage snd cellar of fine , some were to be presents for grandchildren, catering equipment that had been purchased during our 30 year marriage, our car which I had paid £6,000 for the year before. He would not return the few items I asked him to return nor would he sell the goods and car so we could have half. I gave him further goods and went shopping using my card.
    He obviously spun a yarn ( I was recovering from a heart attack and absent from. court) but he was good at saying our when things were bought by me and mine when they were bought by him. So in his mind he say the credit. card as « ours » even though it was very much His.
    He is now chasing me for the debt which he was awarded in arrears with 8% interest which was very nasty to begin with and is now serving the debt to my Mothers address because he also managed to evict me and I’m forced to live here and normally he can’t get her estate. This way he can. How can I fight a debt that is his as the credit card is his and he has goods for that amount and more otherwise I would never have done this. He sais I was to get a car from the mobility people or just use my electric wheelchair while he and my ex best friend had 2 de luxe cars

    Many Thanks

    Reply

    • It sounds as though he went to court and you now have a CCJ? I suggest you talk to National Debtline on 0808 808 4000 about your options.

      Reply

  13. I have been awarded a PPI payout by RBS but am on a DMP. The NATWEST/RBS accounts are now with other creditors – will I receive the money or will it go to these creditors?

    Reply

    • Sometime it will go to you. Sometimes it will be used to reduce/clear the accounts with debt collectors.

      Reply

  14. I have 3 credit accounts which I defaulted on a few years back. I’m now making payments on these due to receiving calls and letters. Just wondering, why pay it if the defaults going to stay for another 4/5 years?

    Reply

  15. Hi I wonder if you can advise.

    I had an old payday loan back in 2015 and stopped paying because of a change in circumstances. They have kept marking it as late payment until march this year when they sold it to a third party who have today issued a default notice demanding payment in full TODAY or the default will be registered.

    Am I right in saying a debt shouldn’t be sold unless defaulted and also a default should be registered after no more than 6 missed payments?

    Also the default notice should give me at least 14 days to rectify it before actually issuing a default against me?

    Reply

    • “Am I right in saying a debt shouldn’t be sold unless defaulted” No – they normally are but they don’t have to be.

      “and also a default should be registered after no more than 6 missed payments?” Yes – you can ask the original lender to add a default back in 2015. https://debtcamel.co.uk/debt-default-date/ explains how to do this.

      “Also the default notice should give me at least 14 days to rectify it before actually issuing a default against me?” that is for a Default Notice issued under the Consumer Credit Act as a precursor to taking you to court. It has nothing to do with a default on your credit record which is a historical record of whether you made the payments on time.

      BUT think about whether you have a possible affordability complaint against the payday lender, especially if you had borrowed from that lender before this last defaulted loan. See https://debtcamel.co.uk/payday-loan-refunds/. If you win this case, your balance may be reduced or wiped out and any negative marks on your credit record removed.

      Reply

  16. Hi,
    I’m trying to get refunds on payday loans that where sold to debt collection agencies. As per your advice on the website I’ve contacted them with my complaint for unfair lending (eg opos) and they just emailed back to say they didn’t agree to the loan in the first place so they don’t have to do anything.
    What’s my next step?

    Reply

    • All your complaints need to go to the original lender not to the debt collector. You should inform a debt collector you have made a complaint to the original lender, but settling your complaint is nothing to do with the debt collector.

      EXCEPT if the original lender has gone bust. Which may be the case with the opos debt? Was this a minicredit loan? If it was, talk to the Ombudsman about what (if anything) you can do.

      Reply

  17. Hi,

    I had a default with Voda on 2015. Unfortunately, due to unforeseen circumstance and change of address, I only knew about it last year. I kept chasing them since then but initially I cannot go through security because the number belongs to someone else. Finally, we are at the end of it as they managed to find me in their records. They said they have sold this to TDX debt collections agency? Does this mean a default? and also when will the default be registered?

    I tried asking for compensation as I have chased them for almost a year but they said that they don’t own this anymore so they cant give me duiscount. Can you help me move forward please?

    Reply

  18. Hi,
    I have been contacted by yet another debt collection agency with regards to a debt that I’ve had for a number of years. This debt has been sold in now for the fourth time – each time I’ve set up a payment plan with the new company, it’s ran for 12 months or so then the debt is sold on again to a different company without notification. I do not miss payments on the plan. I have noticed that the debt is still at the original amount when it was first sold. How do I proceed? At the moment I’ve refused to set up payment with the new company until I’ve sought advice. The debt is about 15 years old.
    Thanks

    Reply

  19. I have a Clydesdale Bank credit card which was sold to Cabot about 5 years ago. I requested a copy of the agreement under the CCA 1974 Act but they have failed to produce it. The Cabot lawyer however is still insisting they will take it to court and obtain a decree. They say that a decree is a finding of the court and is different to enforcement. If they are successful in getting a decree it will really mess up my credit rating, any suggestions on what to do? Can they go ahead and get a decree even when they have failed to produce the agreement or do you think this may just be a threat?

    Reply

  20. I had a debt with PiggyBank who sold it on to Assest Collections. I am paying Asset but PiggyBank say I still owe them 370 for interest that occured when I was with them. Surely if you sell a debt the interest incurred originally goes to the company that has now brought it (asset)

    Reply

    • I have made a claim against PiggyBank for a mis sold loan which I won and they offered my £370 as a gesture of good will. However they have said I wont get a penny as they will use it to pay off interest incured on my debt…yet the debt was sold to Asset in 2016. I dont know where I stand or how to fight this. As I said if a debt is sold surely any interest that was added was also sold ? Thank u for your reply

      Reply

      • ok, let’s work out what this refund SHOULD have been…

        How many loans did you have from Piggybank? exactly which loans did they agree to refund?
        The last loan – how much did you borrow? how much did you pay to PB for it if anything? how much have you so far paid to AC? what is the current balance with AC?

        Reply

  21. Hi,
    I injured my shoulder and missed some payments with 118118 because I had no work. I called today and they said they have sold my debt to a different company and cannot make payments to them. They won’t tell me who or give me their number as I wanted to make catch up payments. The problem I have is I moved to Australia all the details they have for me are incorrect they will not be able to find me but I want to pay and 118 cannot give me their details what can I do? Also there is £5300 left to pay is it eso able to offer a payment if £600 a month or will they expect more. I was previously paying £400 with 118118 before my accident. Thanks

    Reply

    • That sounds like a very large loan. Were the £400 a month payments affordable?

      A debt purcahser has to take what you can afford. That could be £50 a month or less! The chance of them wanting more than £400 is very low! You could just wait and see if you are contacted by a debt collector. Put the £400 a month or whatever you can afford into a savings account so it’s there if/when you are contacted. If that is a while you may be able to get them to accept a lower amount to settle it.

      If you are desperate to start paying (not sure why you would be?) you could send 118 money a written complaint that they have not informed you who the debt has been sold to.

      Reply

  22. Hi,

    Tesco bank credit card contacted me by letter that they had transferred my credit card debt last year to a debt collector with inaccurate information. This incorrect information was also sent to the central credit register. They advised that they had already transferred the debt to the debt collector but had registered it as a tesco bank debt to the CCR. The debt collector was in contact in the last year many times threatening all sorts with regard to the debt. Do I have any standing on having the debt wiped out on data protection abuse and contact the Information Commissioner’s Office or is this a mistake and that’s just the way it works. Many thanks, Adam.

    Reply

  23. Please can you help I’m at my wits end. Mortimer Clarke are chasing me for money for a very old debt. Initially they said a company is applying for a ccj. I notified them that it is statute Barr as it’s over 10 years old but they came back and said company applied for ccj 3 years ago so it’s not statute Barr. I have honestly not received any correspondence relating to this for over 10 years. I sent a letter back advising them of this . They now want my medical history, details of my GP , details of income and state they will apply for attachment of earnings. Well good luck with that, I’m disabled and have recently had a major operation. I have not worked for 10 years and am in arrears with my mortgage because the mortgage company keep giving the DWP the wrong info. I’m stressed enough with the arrears on my mortgage and am scraping by just paying what I can to put food on my table and pay a little towards my mortgage. Now I’ve got Mortimer solicitors breathing down my neck. Please can you help.

    Reply

    • Hi Elaine, so do you already have a CCJ? If you aren’t sure, have a look at a free credit report such as Noddle.

      Reply

  24. Hi Sara

    Great website I’ve learned a lot. But hope you can advise on my debt that has been sold to Lowell financial who are now badgering me with letters and phone calls. From Feb 2012 to August 2013 I lived in a rented property however I don’t remember what water rate payments were made. Lowell’s have found me 2 -3 addresses later saying I owe 470 pounds for the period of Feb 2012 to march 2014. Obviously the date discrepancy could be challenged, but before I acknowledge or ignore the debt my understanding was a default would need to be applied. Would this be automatically applied at the last bill date? I.e. around the time I moved out and therefore if this reaches 6 years in 10 weeks, could I feasibly ignore this until August 2019 before telling them the whole debt is statute barred? If I challenge the dates now or in August would this acknowledge the debt?
    Your advice would be much appreciated. Thanks
    Tom

    Reply

    • I suggest you ask for copies of the Water bills saying you have no knowledge of owing any money. You can’t sensibly talk about defaults until it’s established why you do owe. Water debts do not becaome statute barred until 6 years after the date on the bill, so this is what you need to know.

      Reply

  25. Hi Sarah,
    Sorry didn’t know where to post this. Since subscribing to your blog I have kept a close eye on my debts and credit accounts and I m now sooo confused and really dont know what I m doing anymore.
    I have just logged into my clearscore to find that a company is about to record a default on my credit file- I have researched this and seen that these are debts I defaulted on in 2012, however the lenders didnt add this to my credit file and I had no visibility of these debts. Please advise on what I m supposed to do. I feel cheated in some way as I have managed to deal with most of my debts as we speak and to now find a debt collections company try to reset dates? I had around 10,000 in debts with more that 18 Lenders- mainly payday loans and a big one from Provident that I could never ever keep track of due to a divorce and having 3 children to take care of on my own. Please advise how I can ever get rid of all this and avoid these surprises? I keep getting conflicting data :( sorry for the long post. Thanks

    Reply

  26. Hi,
    I have received a letter from Cabot Credit Management Group which tells me:
    We own your bluestone hire purchase/conditional sale. We recently confirmed you’re living at the above address, we need to make sure you know we’re responsible for managing your account and receiving your future payment.

    I have no idea who Cabot or Bluestone Hire Purchasr are – especially the £8124.84 they say I owe??

    What should I do?
    Any help would be very gratefully received!

    Reply

    • Bluestone would probably be car finance? If you have never had a problem with any car finance then I suggest you send Cabot a Prove It! letter, see https://debtcamel.co.uk/prove-it/

      Don’t ignore this – it is easier to sort out now than fight a court case!

      Reply

      • I’ll have a look into Bluestone – I’ve just bought a car with a loan from my bank.
        Before that it’s been 10 years or more since I had another car on finance. Weird – I’ll send a prove it letter.

        Isn’t any debt older than 6 years null and defunct anyway?
        Seems odd!

        Reply

  27. This one has got me confused.

    I have been paying a nominal fee on a very old debt, now the DCA has been sending me letters saying ”up to 75% off” an offer I would take if I could afford it. They have been sending these over many years.

    The last two however have been delivered via signed for delivery which has me worried, is this normal ?

    Reply

    • No point in worrying about it. I think you are proposing to ask for the CCA agreement which sounds sensible if they are very old.

      Reply

  28. Hi Sarah,
    I defaulted on my Halifax account some years ago and the debt was passed to Wescot Credit Services in 2013. I have been paying Wescot a monthly agreed amount with no problems. In January 2019 I recieved a letter from Wescot advising me that the remainder of my debt is now being managed by Link Financial Services. The letter is of an advisory nature and explains that Wescot are contacting me out of courtesy and that I do not need to do anything. As my current payments will continue to be made by direct debit. I have adhered to what is requiree of me and changed nothing where my payments are concerned. However when I logged onto Totally Money to check my credit rating in February I noticed that I had two late payments listed for both January and February 2019 against my Link Financial account. I wondered what was happening as my Direct Debit is still active and the account is up to date. I called Link Financial and they advised me that they have been receiving payments and there shouldn’t be a problem. But, I have been marked with two more late payments and my credit score is plummeting. I have written to Link and logged a complaint about this and I am waiting to hear from them. I am trying to understand why this has happened. I am fearful that all these logged mispayments could result in another default on my credit file.
    Please can you advise.
    Many Thanks.

    Reply

    • Did Halifax add a default date to the account? Was it sold to Westcot or were they just collecting on behalf of Halifax – if it was sold, Westcot should have added the debt to your credit record, did they?

      Reply

  29. Hi,

    I have recently been in a payment arrangement with 118 118 money, who have now sold the debt to Moorcroft. The letter I have received states the debt is just over £4k. I think this must be incorrect. 118 118 front load all of the interest so that at any point the outstanding balance is capital + interest. If you settle early they will rebate the accrued interest less a (28/56) day early settlement fee. My loan agreement with 118 is due to expire in January 2020. So my query is, surely the debt should be what the settlement figure is as at now? I can’t, but if I could settle the full balance now, I would be paying more interest this way?

    I wanted to check if this makes sense before quering with the DCA.

    Reply

    • A statement about a loan balance will assume you are going to pay it to the end. It doesn’t assume you are going to settle this now.

      You had problems with this 118 loan – do you think the monthly repayments were just too high for you to manage? You might like to read: https://debtcamel.co.uk/refunds-large-high-cost-loans/ and think about making an affordability complaint. This complaint would go to 118, not to Moorcroft. If you win the complaint, your balance would be reduced so you only have to repay what you borrowed, with no interest.

      Reply

      • I was in a payment plan for almost a year for this loan. This loan was my 3rd loan from 118 (this was a top up of loan 2). I have already submitted the affordability complaint and the 8 weeks will be up on the 11th of June. If the complaint is upheld, even only on loan 3, the full balance will be cleared as the capital element has already been repaid.

        Reply

  30. Hi,
    My husband has recently received two letters from Cabot stating they have instructed Global Debt Recovery to manage his account, then two letters from GDR telling him how to make contact and where to make payments. Both letters state the original lender was HBOS (on both letters, two separate amounts). The two GDR letters make reference to ‘escalating this to our collections department’ if they do not receive a response in 14 days. My husband does not recognise either HBOS debt, he previously fell in to default when he was younger (15-20 years ago) but believes this may have been with Lloyds, he is of a mind to ignore the letters for now. However, they are worrying me. I am undecided whether a ‘prove it’ letter is the way forward, or move straight to statute barred if we receive anything further. I am assured that he has not acknowledged the debt at any point and every element of the statute barred seems to fit (if indeed they have even been written to the correct person, they could well be fishing).
    Any similar experiences out there, or experience of dealing with GDR? Any advice gratefully received.

    Reply

      • Thank you Sara – appreciate the response. Just got to persuade him to send the letters now, he is of a mind to ignore the letters being sent, I would prefer he took some positive action. We have had another letter today stating that it has reached the collections department and asking for contact to be made to ‘prevent further contact’ but we certainly won’t be making telephone contact.

        Reply

      • Sara, one more question if you will – relating to the above. My husband does not recall default notices being served (although if these debts are his very very old ones he probably won’t remember) can the debt collect agency issue default notices out of the blue?

        Reply

        • these old debts are not going to reappear on his credit record if that is what he is worried about. I think he is over-thinking this. Just send the Prove It! letter.

          Reply

          • Thanks Sara, he flatly refuses to engage with them by sending the Prove It! letter. He is happy to wait and see whether he receives a Letter before Claim and complete the required forms asking for the relevant documentation at that point. I will update if/when this happens.
            This is a really great site, thank you.

  31. Hi Sara,

    I’ve received a letter from Lowell offering me a 70% discount on my balance to clear and settle the account. (This came out of the blue) I’ve been making token payments to the account and have confirmed that a signed application form does exist so I believe the debt to be enforceable.

    I’m tempted to bite their hand off on the offer, should I call them and request in writing that they confirm the payment will be full and final and the remainder of the balance wont be sold on? I don’t see anything in the current letter to confirm that, only it will be clear the balance.

    Reply

    • If they said “clear and settle” in the letter, then that should be ok, but if you aren’t sure, yes, ask them to confirm it.

      Reply

      • Thanks Sara, to be clear on the letter it states;

        Thank you for your regular repayments. As you’re one of our valued customers, we’d like to give you the opportunity to settle your debt more quickly.

        70% discount offer

        If you contact us by *date* to arrange to settle this account in up to three payments, we’ll give you a 70% discount. This means you’ll pay *amount* to settle the account.

        If your account is being reported to the credit reference agencies we will mark any default as partially satisfied, when paid, to show a discount was accepted. If you pay by installments, the discount is applied upon receipt of your final installment.

        Call by *date*
        We”ll accept *amount* to settle the account.

        If settling the account is not affordable for you at present, you can disregard this letter and just keep making your regular payments as usual.

        We look forward to hearing from you.

        Reply

        • That sounds ok to me. Make sure you keep that letter for 6 years though just in case you are ever contacted in future!

          Reply

  33. Hi I have a question in regards to two markers on my credit file, I have spoke with the original creditor (very) and they have advised they sold the debt to Lowell some time ago… however my credit markers for both are different amounts orgnial being with very is at £566 which i admit I completely ignored and the Lowell being £346 as I started making payments when it was sold to them. however both markers remain the for the same debt at two different amounts, I’m now in a position to clear the balance fully and my payment is being refused by Lowell as they are saying they have closed the account please could you advise me on what action I could take to get this corrected and if so any template letter I could send

    Thanks in advance
    Rem

    Reply

        • Ok so both will drop off 6 years after that date.

          It won’t make any difference to your credit score what you do with this debt. If Lowell won’t take any money, you could just leave it.

          Or you could write them a letter saying in that case you would like them to settle balance if the debt go zero.

          Reply

  34. Hi Sara
    I have a twelve year old DMP, all debts dropped from my credit score a long time ago; they are all credit card/over draft debts and one loan (original amount 25k when I worked for a high street bank – I won’t go on about the bad advice I was given when my husband was laid off). All the debts have been passed back and forth between the original lender and DCA’s/management companies such as Lowell/Cabbot/Wescot and some have been sold. I want to know why the original lender bothers to do this and then takes back management, only to give it away at a later date. This cycle continues.
    It must cost the companies money to do this so I have been trying to find out why it happens so regularly – maybe I have much older debts than most ?
    I have never sent the CCA letters, despite being 99% certain the original lender of the largest debt will not have a copy of the original agreement. I get sent offer letters regularly, however my financial situation is such my payments started at 198 a month, reduced to 98 about 5 years ago and I’m currently paying 36 a month.

    Thanks in advance
    Deb

    Reply

    • Your position has got worse. But some people’s position improves – child care costs stop, get promotion, inherit money, move in with a partner with no debts etc. So creditors keep trying as sometimes they get paid.

      Why not send those CCA letters for the old cards and loans, not the overdrafts ? https://debtcamel.co.uk/ask-cca-agreement-for-debt/

      Reply

  35. Hi.
    My husband had a debt with o2 which has been sold to moorcroft now both have been marked on his credit file for different amounts can they do this, Also we have rang up for a settlement figure but moorcroft hold different amounts to what is on the credit file how can this be? Also if we are going for a mortgage would it be better to partially settle these debts or settle in full?

    Reply

      • Ok thanks. Can these debts be marked on twice on the credit file? Also the debts are lower on the credit file than moorcroft are stating. Surely they couldn’t have increased if we have been paying them off.

        Reply

        • Its normal for there to be a debt from the original lender and one from the debt opurchaser. they should have the same default date.

          Ask for a staement of account, then think if that is right, then get it settled. I suggest you don’t get distracted by theoretical problems about why the amounts are different on credit reports, tackle the underlying issue then make sure the debts show as satisied on your credit records.

          Reply

  36. Hi Sara

    I have 2 Newday credit cards and I have been paying £5 a month off each card at the end of last year they went in default this year one card in January and one card in Fabuary I was paying the £5 off each card before it went into default the Newday credit cards have stop all my interest on the cards but nothing is comeing of the amount I owe is this right

    Thank You

    Reply

    • Have you asked them for a balance? it may be they are just not updating your credit record every month.

      Reply

  37. Hi

    I got a letter in December from PO Box 189 Huddersfield, it was from a DCA saying they have a debt they think could be mine please go online and register an account user BG a reference number. I only recently moved back to the UK having spent the 6 years in Spain and France, and am 100% sure I have not missed a payment or incurred any debts, I have no credit cards or credit agreements, all my bills are paid and up to date.

    I ignored the letter as I am confident the debt either predates my leaving the UK in November 2012 in which case it is expired as I have not heard from them in the last 7 years, or the debt belongs to someone else with the same name.

    I heard nothing till last week when another letter from same company arrived, and another again this week, this time I returned to sender unopened. Now the question is this the right action to take?

    Alex

    Reply

  38. Hi, so I was made Bankrupt and had put on the Insolvency Register in 2005 – One of the debts I had then was from a MBNA credit card for 16k.
    Today I got a letter through the post, at my current address which is different from the old address saying that Capot has passed on my debt to someone else and they are asking for repayment.
    I am unsure of what to do as this debt should have been written off, it it just a case of them telling me they moved the debt to another agency and they don’t know I was made Bankrupt – if so should I ignore it or reply to them.
    Can they legally try to get me to repay this amount?
    Thanks

    Reply

    • No they can’t. Reply saying you went bankrupt in 2005. Give the date, court and bankruptcy number if you still have the details.
      (In any case the debt would be statute barred and its highly unlikely the creditor would be unable to produce the CCA agreement for the debt. They are just trying this on even if you hadn’t gone bankrupt.)

      Reply

  39. Hi,

    I recently got a letter from Opos Ltd saying that they’re collecting for JS International LLC – TalkTalk Legacy. The amount is fairly small (<£100) and dates back to Jan 2017. I did hold a TalkTalk account and TalkTalk have recently confirmed that they did sell this debt and it is related to me, however they will not provide details of why the charges were made as the debt has been sold. As far as I remember the contract was terminated gracefully and no further charges were due. The current dca has no details to offer on why I was billed, and from reading this forum it looks like TalkTalk are still responsible for providing this information, could you confirm and if possible advise on any wording I might use to persuade TalkTalk that they're still obliged to give detail on the reason for the original charges?

    Thanks.

    Reply

    • Send TalkTalk a written complaint to concerns@talktalkplc.com, put COMPLAINT in the subject line and say that you are disputing that you owed any money on your account and you want an account statement and an explanation why there is a balance. If that doesn’t get anywhere, tell them you want to make a Subject Access Request for a copy of all your personal data.

      Reply

  40. Hi Sara,
    I just recieved a telegram type letter from Wescot Credit Services. The letter does not say what it is about and who it is from instead these are represented by numbers and letters. The letter does ask me to contact them. The last time I recieved letters from Wescot was about a year ago just after my debt relief order was cancelled two weeks before it was due to finish because of a benefits back payment. At that time Wescot were representing Nationwide who were one of three companies to which I owed credit card debt. At that time, Wescot sent me three letters the last one of which offered me a much reduced payment sum to clear my one debt. However I was unable to take them up on this offer as it would have left me wide open to my other debts one of which was for a much larger sum. To give a brief summerly I ignored all of Wescot’s letters and nothing happened. Here I am one year later recieveing another. What should I do? My plan was to wait until they said they were going to take me to court after which time I woud inform them that I intended to go bankrupt. I have no assets and I am on Universal Credit with limited capacity to work.

    Reply

    • With no assets and a limited capacity for work, bankruptcy sounds like a sensible option. How long will it take you to get the bankruptcy fees together?

      You could offer them a token £1 a month, or reply saying you cannot afford anything,

      The other thing you could try is to ask Westcot for the debt to be written off. This isn’t usually an approach that works (see https://debtcamel.co.uk/debt-options/less-common/write-off/) but in your case you can argue:
      – that you tried to resolve your debt situation with a DRO
      – that it was not your fault the DRO was cancelled
      – that your health means you are unlikely to ever be able to replay the debt (supply medical evidence about this)
      – that writing the debt off is the responsible thing for a lender to do in this situation.

      Reply

      • I should be able to have the bankruptcy fee by the 27th of August providing the D.O.W.P don’t reduce my benefits before then as I am once again going through the UC50 and ATOS medical assessment process. Though my UC50 is not due to rech them before the 12th of August so I am optimistic. I will follow your advice as in telling them that I have nothing while asking them to write it off. But first I will wait and see as to what other letters they send. If they get serious with court them I will go bankrupt as I have no means of paying them back as well as nothing to lose.

        Reply

  41. Hi there, Sara.

    I’ve received a letter from Mortimer Clarke about their intention to issue a CCJ. They contacted me initially on 23rd Jan 2018……I requested Proof of Debt and Last Payment which I have now received back on the 14th June 2019!!17 months later! The debt is wtih HFC for £331 pls charges added so £416.

    I am living with my partner now. I’m basically a House Husband and i help her with her Dog Grooming business. I am registered as Self Employed but i don’t take a drawing. Everything is in my partners name. I have no Credit or Bills in my name.

    I spoke to them and said i already had a CCJ for £5700 and that i had no income. He game me instruction to contact National Debt Line. He put the account on hold for 35 days and has told me to contact again before this time ends.

    What should I do? I have no official income of my own. I already have a CCJ that i can’t pay.

    Thank you.

    Reply

    • If your partner’s business is profitable, it is usually sensible to be paid for this as you would have no NICs or tax to pay below a certain amount.

      Talking to National Debtline seems a good option for you. If you don’t want to have any income to pay the debts you could look at insolvency options.

      Reply

  42. Hi Sara, I spoke with you in June 2018 as the debt management immediate financial had stopped trading leaving my husband owing one debt to Bank of Scotland for almost £10000. The original preference account was taken out 1997, and he defaulted and eent to debt management 2011..We took your advice and asked for a true copy of the CCA, and since that time the debt has been dealt with by, Moorcroft, and then CSL working on behalf of The Bank of Scotland…each have sent different paperwork but not a true copy of the original, the paperwork being totally incorrect…we have challenged this each time and in May sent yet another letter asking for a true copy to be sent and unless it was the debt would be unenforceable….my husband did offer to pay £5 per month as a gesture of good will until the paperwork was acquired, but this offer was ignored….Today he has a letter to say that the Bank of Scotland has sold the debt and ownership of it to Cabot, and he must now deal with them….the question now is….as it has actualky been sold does this mean the paperwork cannot be found….so is the debt unenforceble….and should he offer Cabot a token paynent as a full and final offer, or should he offer the £5, that he did originally….any advice forward would be very much appreciated please, Thankyou kind regards Wendy & Philip

    Reply

    • the debt being sold doesn’t say anything about the whether the paperwork can be found or not.

      I suggest you tell Cabot that you have previously asked BoS for a copy of the CCA agreement and they have been unable to produce a correct version so you will not be paying anything until Cabot produce a true copy.

      Reply

  43. Hi Sara,

    I had an aqua credit card with a limit of 3500.
    Went on maternity leave, kept up with minimum payments for a while but eventually due to the financial struggle I contacted them and came to an agreement to pay a lower amount. I was told the account could be placed on hold for a year . Fast forward about 2 payments later and I receive a letter to say my account is with hoist finance and to pay Robinson way which I’ve kept to .
    I genuinely thought that my account had been just passed to these companies for a year but upon contacting Robinson way I now realise aqua just sold the debt on almost straight away.
    However there hasn’t been a default issued and there isn’t one on my credit file just that it’s now owned by hoist. Am I just lucky?
    I’m guessing the best thing to do now is to clear the debt asap as there isn’t and hasn’t been any intrest or fees added on. Should I be cheeky and ask for a reduced settlement?

    Reply

    • If you can clear the debt soon, that is the best thing. They may accept a reduced settlement – it’s worth asking!

      Reply

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