If you get a letter saying that a debt has been sold to a debt collector you may be very worried.
This article answers common 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?
Contents
I don’t think this is my debt
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.
But I don’t owe this money
When the letter mentions a debt that you don’t think you owe, do not ignore it.
If you have already repaid the debt, tell the debt collector this. Ask them for a Statement of Account for the debt if they say you do still owe money.
If you have never borrowed from that lender, or never used that electricity supplier, reply telling the debt collector to Prove It!
It is the debt collector’s job to show you are the borrower. You don’t have to prove you aren’t. But unfortunately you may need to be persistent about this.
Has the debt really been sold?
A lender will often 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. 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 the sale fair?
Is this even legal? Why wasn’t I asked?
When a sale happens, everything about your debt remains the same, except that you now owe the money to the debt collector who has bought the debt. The T&Cs of the debt haven’t changed – just who the creditor is.
You won’t be asked to agree to the sale. AndYou can’t object to 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”.
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.
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 or critical illness, your debt should not have been sold. Most banks and many major credit cards are subscribers. Go to your local Citizens Advice if you would like help with this situation.
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 or unfair, 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 This example isn’t an attempt to explain the legal contractual obligations – it is an analogy illustrating why you now have to repay someone else.
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.
Has this reset the 6 year period for becoming statute-barred?
No, this hasn’t changed anything about statute barring:
- if the debt isn’t yet statute-barred, the 6 year period carries on, it doesn’t start again after the sale. But if you were hoping the debt would soon become statute barred, the debt collector may push you to make a payment or go to court for a CCJ if you won’t. See “My debt has been sold, just when I thought I was out of the woods” for your options.
- where you have been making payments, this debt will never become statute-barred.
- a debt that is already statute-barred will continue to be so after the sale.
Read Statute Barred Debt – Common Questions because statute barring is complicated.
My debt has now been sold to another debt collector!
This happens. Sometimes several times. There is nothing you can do about it.
Sometimes the debt collector is going out of business. In 2022-3 there was a very big transfer of debts from Hoist to Lowell for this reason.
If you have been paying the previous debt collector, just start paying the new one.
What will the debt collector do?
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, overdraft 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.
Will they come to my house? send bailiffs?
Bailiffs can’t be sent until the debt collector has got a CCJ (see below) and you are not making the CCJ monthly payments. this is very unlikely unless you ignore the debt collector.
In theory, a debt collector can send someone to your house. They have no more right to enter your house and take your things than the postman has. You don’t have to open the door to them.
As a result, this is pretty rare. It isn’t going to happen unless you ignore the debt collector, and even then it’s pretty unusual.
Can the debt collector take me to court?
Legally, 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 2022, there were nearly 900,000 CCJs. Many of these CCJs are for quite small amounts – much less than a £1,000.
Very few original lenders go to court for a CCJ – they usually sell the debt and let the debt collector take you to court. You may have been ignoring the original creditor and all that has happened has been a few emails and letters. But if you ignore a debt collector they are much more likely to take you to court.
How much can you pay to this debt?
I already have a payment arrangement in place for the debt
If you have a debt management plan, tell the DMP company. They will switch your monthly payment to go to the debt collector.
Where you have set up the payment arrangement, you need to ask the debt collector for their bank account details so you can start paying them.
I can’t afford to pay anything as I have arrears on important bills
Explain this to the debt collector. Most of them will let you have a break from paying if you have priority debts.
DO NOT PANIC and offer too much
You should only offer what you can afford for regular monthly payments. Not the maximum you think you can stretch to next month.
Never borrow money to try to pay a debt collector. This is an already defaulted debt where interest should be frozen. You will make your situation worse by borrowing more money to clear this and paying interest on it.
If you have been ignoring this debt, this is a good point to review your whole situation and your possible debt solutions.
If you aren’t sure what to offer, or feel a debt collector is trying to push you to pay too much contact your local Citizens Advice. Or phone National Debtline on 0808 808 4000,
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. You may be alarmed because that looks bad.
But the debt isn’t being double counted because one of the debt entries says that there is zero owing.
And when your credit rating is calculated, only one of the two debts is counted. So your credit score will not get worse because you now seem to have two defaults.
Options when you cant pay bills & debts
Threats of court – are debt collectors bluffing?
Ask for the CCA agreement for old debts
Jon says
Debt collectors can and do sometimes add a 2nd default.
In some cases this is legitimate where for example the original default is marked as “debt assigned to CAIS member” or similar to show that it has been sold on. In that case 2 defaults can show on your reports to you, but only one is seen by lenders for credit scoring. So if you see an original with that flag and a new default with the same dates under the name of the DCA, then that is allowable.
Likewise debt collectors can also have the old default transferred into their name. Again this is not a new default and is allowable as long as they don’t alter the details such as dates.
Some debt collectors do however wrongly add 2nd defaults without anything to mitigate the harm of the duplicate. That is wrong and the debtor should complain. Some collectors also add new more recent defaults in addition to the old one, or replacing it. Again, that is recording false and inaccurate information and should be complained noisily about.
Marica says
Interesting info here!
Maybe obvious to you however to get it into my thick head, what counts as legal proof of a mental health problem that a debt collector has to accept as evidence?
If not shown to original creditor (never asked when loan taken out) does debt collector need to accept your evidence?
Thanks
Sara (Debt Camel) says
Hi Marica, I’ve written a full article on Debt and Mental Health here https://debtcamel.co.uk/debt-mental-health/ that you may find useful. It doesn’t matter that the original creditor wasn’t informed – after all you may not have had any mental health issues a few years ago when you took the loan out, what matters is your health now.
jane parker says
Hello
i had a large debt with natwest and i am currently in a dmp with payplan.However natwest have now passed my debt on to Baker Tilly .Had this been sold and if so do i owe money to both of them?
Sara (Debt Camel) says
Hi Jane, If your debt has been sold, then you will now owe the money to Baker Tilly and not to NatWest. If NatWest are just using Baker Tilly to collect repayments, then the debt hasn’t been sold and you still owe the money to NatWest. If you have received a letter about this, the letter should explain which is the case. If you are unsure, call Payplan – it’s Payplan’s job to administer your DMP and this includes tracking where debts are sold.
Skip78 says
I have been going through a lot of my old paperwork and found that I still had debts to HSBC. After several moves, and about 4 years, I decided to go through all of that paperwork and sort everything out. I’ve just phoned HSBC and they say they have sold my debts to Marlin and I should contact them immediately to organise repayment. I’ve never heard anything from Marlin or HSBC as they have never tried to track me down so far as I know (no family member contacted etc.) so what’s the best course of action? I hear that Marlin are terrible to deal with and they have paid for my debt so isn’t it settled with HSBC? It will have been defaulted ‘yes’ but it’ll be clear after 6 years won’t it?
Sara (Debt Camel) says
Hi Skip, because your debt has been sold, you now owe the money to Marlin, not HSBC. Check your credit record to see if it has been marked as defaulted – this will also show up any other old debts that are still around. You can either contact Marlin and try to arrange to repay it or wait until Marlin contact you – the problem with waiting is they may register a CCJ against you at a previous address so you won’t receive the court papers. If you have any money now, you may be able to offer them a full & final settlement?
Helen curcher says
I am in a similar position to this person. The original debt is over 6 years and has dropped off my record but I have diligently been paying Moocroft. If they accepted full and final settlement, would a new default be applied to my credit report despite MoorCroft never showing in the first place?
Sara (Debt Camel) says
Once a debt has dropped off your credit file it can never reappear.
Mark says
I have some mental health issues but need to know what level of proof a DCA are allowed to ask as I am loathe to give them personal details?
Sara (Debt Camel) says
Hi Mark, You might find this article about debt and mental health problems helpful: https://debtcamel.co.uk/debt-mental-health/. You don’t HAVE to tell a debt collector anything, but if you want them to accept an offer or give you a breathing space it does help to talk.
Dawn says
My brother has been paying debt collection agency moorcroft for 13 years, it is no longer on his record but he has got his debts down from 15k to 5k. Is he still legally obliged to pay the rest or is there anything we can do.
Sara (Debt Camel) says
Hi Dawn, the debt may have dropped off his credit record, but it still legally exists and if he has been making payments it won’t be statute barred (see https://debtcamel.co.uk/statute-barred-debt/). If he can’t really afford these payments they may accept a full & final offer if you could help financially – see https://debtcamel.co.uk/debt-options/less-common/full-final/. If there are other debts as well, I suggest talking to National Debtline 0808 808 4000.
Nici says
My overpayments of Tax credits have been sold to a debt collection company. They want just under £6k. We only earn low wage, have a mortgage too. They tried their luck for the whole amount – we do not have anything like that amount. Is there a time limit on how long it may take you to repay an amount? We feel we could only manage £30 per month to be able to manage with our 2 children. Please any advice appreciated. Worried sick.
Sara (Debt Camel) says
Hi Nici, with tax credits, I suggest you go to your local Citizens Advice Bureau and ask for their help in reaching an affordable arrangement.
Adam says
Hi i have been hounds by Lowells for nearly 6 year for a contract with 3 mobile that i never had i have not paid them a penny or written to them as i felt there was nothing to say to them but towards the end of last year they applied for a CCJ against at an address that I’ve not lived at since November 2013 i was under the impression that i needed to be contacted and acknowledge the intent to issue a CCj before they did? i just get the feeling that Lowells have acted illegally in obtaining a CCJ oer should i leave it until 6 years has past and then change the CCJ?
Sara (Debt Camel) says
Hi Adam, no don’t ignore a CCJ or delay. If you want to challenge it you have to apply to have it set aside and the court may refuse this if you do not apply promptly. Contact National Debtline asap.
Annabel says
Hi – due to becoming unemployed I was unable to pay my credit card and the debt has been sold to 3 different debt collectors who have all written to me demanding payment. I have checked my credit score and a default has been logged against me so I know this will stay on my record for 6 years now. Who do I owe the debt too out of the 3 companies? What will happen if I continue to not pay any of them?
Sara (Debt Camel) says
Hi Annabel, a debt can only belong to one creditor at a time. Sometimes a creditor will employ a debt collector to try to collect the debt for them. This can be confusing. Ways to work it out include looking at your credit record to see who now owns the debt and calling up the original lender and asking who they sold the debt to. If you phone National Debtline on 0808 808 4000 (or go to your local Citizens Advice if you prefer face-to-face advice) they may be able to help you work it out from the letters that you have. They can also talk through your options. If you do nothing you may end up with a CCJ.
Steve says
I have been in a DMP for years. I recently received a demand for the same Barclays debt from 2 different companies. The first is the company I have been paying for 5 or so years through the plan (Debt Managers LTD) and the second is from a company I have never heard of (scotcall). Any ideas what this means?
Sara (Debt Camel) says
It sounds as though your debt has been sold to scotcall. I suggest you contact the company running your DMP – it’s their job to sort this one out!
Stuart says
Hi,
Back in late 2007 I suffered a reduction in income. I contacted CCCS and they provided me with a template letter to contact all of my creditors and make an offer of £1. This I did. I’ve been making the payments since.
Recently I have noticed that the CCJ and 90% of the creditors from that time, no longer appear on my Credit File :-) However 3 remain:-
I have telephoned to query why these items are still showing on my file. The lady advised me that (despite them being a Debt Collector) the items have not been ‘marked’ as defaulted. I was under the impression that unsecured debts are removed after 6 years. If I am correct and you feel this should now be removed could you please advise me of the process?
Sara (Debt Camel) says
Hi Stuart, I have edited your rather long comment. Debts disappear from your credit file 6 years after the default date. If you are only paying a token £1 to them this should be within 3-6 months… See https://debtcamel.co.uk/debt-default-date/ which explains how to get this corrected.
Tom says
I’ve received a FINAL DEMAND – Account Balance £13.14 from TalkTalk Telecom LTD, if not paid in next 7 days, my details will be passed on to Debt Collection Agency. This is for services I didn’t need or use from this cheap low key underhanded company, they need 30 days in advance of cancellation of account, and I just couldn’t wait to use a professionally reliable company, after their appallingly bad hit and miss service, never knowing when I could use the Internet at incredibly slow speeds, I believe they kept the service active for 10 days even though I told TalkTalk I didn’t need or want their useless service, should I ignore their demand? as it’s such a trivial amount of money, it beggars belief, I guess they must be hard up and desperate for cash.
Any advice would be most helpful
Sara (Debt Camel) says
Personally I would pay that and write it off to experience. If you want a legal battle then start by putting in a detailed complaint to TT and ask them not to pass debt to debt collectors whilst it is in dispute.
Aleem Paracha says
Why is it that my original debt was sold without my knowldge and I cannot get anyone to tell me how much it was sold for
Why wasn’t I offered the purchase of the debt , Have I got any come back on this
Sara (Debt Camel) says
Hi Aleem, this is what normally happens. You have no legal right to know what your debt was sold for, as the above article says. I am afraid you have no legal come back on this, however unfair it feels.
Kerri says
I was late paying my tax bill last year and ran up an account of £455.38. I have since cleared the bill in full. However I am being harassed by fredricksons for the full amount. They are threatening to take me to court. I have tried to tell them that the account is settled but they won’t listen. What can I do?
Sara Williams says
Hi Kerri, well you could ignore them, wait for a court form to arrive and enter a defence. Or you could write to them and enclose some proof (bank statement?) that you have paid. If you get fed up with them continuing after you have sent them proof, send the a written letter of complaint and say you intend to complain to the Financial Ombudsman and their regulator, the Financial Conduct Authority if they don’t stop.
Arch says
Hi, I had personal with hsbc, which was defaulted in 2009 March. After that for few years made £10 to different collections agencies. Since around a year stopped making any payments and marlin started sending letters saying they are the new owners of the debit. Can marlin take me to court and default this account?
Sara (Debt Camel) says
Hi Arch, yes they can take you to court for a CCJ – the debt won’t be statute barred as you have been making payments up to a year ago. But a new default shouldn’t appear on your credit file.
Andy says
Hi is there such a thing as an Tacit agreement, and am I allowed to see proof from an Debt collection Agency of the Deed of Assignment & Deed of Novation as well as the original credit agreement before I accept that I owe money to the debt agency.
I ask this as I have seen loads of correspondence on line that they have to send you these if you ask for them.
Sara (Debt Camel) says
Hi Andy, it sounds as though you have been reading the “three letters which need posting at least 10 days apart” nonsense. The “copyright your name” variations are good for a laugh, but not good to take seriously if you are hoping to get out of debt.
You have no right to see the deed of assignment / novation or any other commercial documents relating to the sale of your debt. You are not a party to this sale, and feeling this is somehow unfair doesn’t change this. When your debt is sold you DO owe the money to the firm that has purchased it.
I’m afraid you can’t believe everything you read on the internet. You will have to use your own judgment about whether to believe what is written here :)
david says
I have a single debt, I am currently paying £20 per month. I am being asked about my income, I receive esa and dla. Do I need to let creditor know of dla? If I let them know, can they demand a bigger payment.
I have terminal cancer and also wonder if I die will my debt pass to my dependants?
Sara (Debt Camel) says
Hi David,
I am sorry that you are having to worry about debt at a time like this. I suggest that you tell the creditor about the DLA but explain about your cancer and that the DLA is covering your additional costs. It might help if you could include something such as a letter from your doctor or simply a copy of hospital appointments as “evidence”. I would be surprised if in these circumstances they ask you to pay more, but if they do, ask your local Citizens Advice or Macmillan Cancer Support for help in replying to them.
Debt isn’t passed to your dependents. However if you are leaving assets such as savings or a house, then your debts have to be repaid before the rest is distributed according to your will. If you don’t leave any money, or there is only enough to cover your funeral, then your debt will effectively die with you. Citizens Advice will also be able to advise you on this.
Jane P says
Hi Sara,
Approx 13 years ago I stopped paying my credit card due to financial difficulty. I had no contact with the company and buried my head in the sand. Life moved on and I moved house 8 years ago. I opened an noddle account and nothing is recorded on my credit file. I applied for a credit card and was accepted. I have now received a letter at my new address from a DCA. I have done a search on myself via the Trust registry, no ccjs are listed. Am I into thinking that this debt is “statue barred?” I’m feeling very worried and can’t sleep or eat.
Sara (Debt Camel) says
Hi Jane, it seems likely that this very old debt is statute barred. I’ve written an article about this https://debtcamel.co.uk/statute-barred-debt/ – the best way to put your mind at rest is to phone National Debtline as that article says – they will be able to advise you and help you reply to the letter.
quinyawna says
Can a DCA add interest to the original owed amount? I contacted the original borrow they give me my balance and when the account was closed and sole. The DCA have been increasing the amount owe every month and on my credit report the account shows open. Can DCA do this?
Sara (Debt Camel) says
It’s unusual for a DCA to be able to add interest. Whether they are allowed to do this will depend on the T&Cs of the original credit agreement. If you don’t have a copy of this, this National Debtline factsheet https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx tells you how to get it. If you aren’t sure when you have read the original T&Cs, phone National Debtline and they will be able to advise you.
carolyn says
hi can anyone tell me if a debt has just been passed on and not sold if i have to pay the people it has been passed onto or if i can ignore them and continue to pay my original lender there is no deed of assignment as it has definetly not been sold just passed on but i want to deal with my original lender and want nothing to do with debt collection agency
Sara (Debt Camel) says
Hi Carolyn, it sounds as though your debt hasn’t been sold, but the original lender is just outsourcing its debt collection. You can’t insist on dealing with the lender direct I am afraid.
Rich says
Hi. Yesterday I received a cheque from Bank of Scotland for £580.00. The letter stated that many years ago I had defaulted on a loan I had with them and as such they sold my debt to a debt collection agency. When they sold my debt they charged me £150 twice (£300 total). They tell me that they shouldn’t have charged me this £300 for transferring my debt. I wondered if anyone else had heard of this and if I can pursue other banks for similar refunds? At the time, I had a few loans that went into default so I may have been charged on all of them?
Thanks
Sara (Debt Camel) says
Hi Rich, a few people have been receiving these cheques from BoS. Some people are very suspicious that BoS are trying to get them to acknowledge the debt – but if you are sure you haven’t made any payments to it for over six years then it will be statute-barred (see https://debtcamel.co.uk/statute-barred-debt/) and nothing you do now will change that, in which case you can safely bank the cheque. This wasn’t a standard charge by other banks, so No, I don’t think it’s worth trying to pursue other banks for similar refunds.
cherry says
Hi, my husband received a letter from Lowell. They said that his debt fr JD Williams have been sold to them and obtained a copy of his credit file from CRA. They also said that JD hasnt got his up to date address as they trying to contact him, the account was opened in 2012 according to them. My husband hasnt opened any acct to JD and we live in the same address since 2007. We dont know where this debt come from, though we are on IVA since 2010, we never opened any store card as its part of our arrangement with IVA. Before he start calling them, we want to know how to get details of this debt. Any advised how to deal with this we are at the end of our IVA, and the last thing we want is another debt. Many thanks.
Sara (Debt Camel) says
Hi Cherry, your husband needs to send Lowells a Prove It! letter, see https://debtcamel.co.uk/prove-it/. You could include a sentence saying that you have lived in the same place since 2007. I suggest he also checks his credit records with Experian and Equifax so he knows what, if anything, is showing. He should also inform the IVA company that he is having this hassle.
Andy says
Hello, I’ve had a dept from HSBC now sold off to a collector, I have been chased by numerous debt agencies for a few years now but only to find the debt was in my name only even though it was a joint loan (which I now have proof of). Do I stand a chance of reducing the debt or having it written off for the fact the debt collectors have been chasing me solely and causing masses of stress when they should have been splitting the debt and chasing my ex partner aswell. Think I have been very unfairly treated?!
Sara (Debt Camel) says
Hi Andy, I know it feels very unfair, but legally I am afraid the debt collectors are allowed to pursue just one person for the whole debt. They are under no obligation to split the debt.
becki says
Hi,
I have a couple of debts that have been sold to Lowell finance. The fees I owe have gone up from what I irignally owed. D I have to pay them or do I just owe the original amount? Not sure where I stand, Also do I need proof that they have actually bought the debt from my original creditors?
Thanks
Sara (Debt Camel) says
Hi Becki, a debt collector who has bought a debt can only add interest and charges if the original contract allows this to happen. This isn’t common! Use this template letter from National Debtline https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx to ask for a copy of the original agreement. You should have been sent a letter informing you that the debt has been assigned to Lowells, if you haven’t you can ask for a copy of this.
Ashley says
I have recently checked my emails and i have come across a email from o2 saying that i still owe them £190 the email is about 1 year old then there is a follow up email from a collection company lucas collections or something similar saying i need to pay this amount by certain date then another email of lucas collections again saying i can save 50% and pay £95 before the 16thof december other wise the matter will got to court…… BUT none of this is showing up as a credit agreement on my credit report no trace of it at all on my equifax or experian credit report should i just ignore it or will they be able to take me to court ??? Im usure as what to do as from what ive read on here just me acknowledging them at all unsettles the dust so to speak …
Sara (Debt Camel) says
Hi Ashley, if you don’t think you owe this money, the first step is to send the debt collector a “Prove it” letter, see https://debtcamel.co.uk/prove-it/. If you have never been a customer of O2 I would add a sentence to the letter saying that.
If you do think you owe the money I suggest that 50% off isn’t a bad offer – sometimes mobile companies are pretty slow at Updating your credit record but they could still do so and also take you to court.
Wayne says
Hi,
I have received a letter from Lowell a debt collection agency, they are saying that unless I contact them they will be doing the following, checking for any assets I may own, checking my employment status, and also checking my personal bank account to access my financial situation..
My questions are, 1) how can they check my personal bank account with out knowing my account details, 2) can they legally do this with out a court order in the first instance..The debt of £1700 was sold to them by capital one and I have not entered into any communications with Lowell..
My circumstances are as follows…I have a chronic and debilitating illness which also affects my mental health, It causes long and short term memory loss and half the time I don’t know what day it is, any stress adds to my problems..I have no choice but to live on benefit, I will never work again because of it..Is their any way I can get them off my back..I am not in any frame of mind to enter into any legal agreements because of the way my illness affects my mental process…Any help or advice would be greatfully appreciated..I am not trying to get out of this I just want the stress of this to go away..
Sara (Debt Camel) says
Hi Wayne, they can tell if you have a house by checking the Land Registry. They can see from your credit file if you have an overdraft. But they can’t see the level of your savings.
Given your health issues, I think a good way forward for you would be to talk to StepChange http://www.stepchange.org/. They could help organise a Debt Management Plan for you, or even a Debt Relief Order depending on what other debts you have.
Joh56 says
Hi I fell into arrears with the repayments on a loan I purchased in 1998 and further down the line I made an agreement for someone to call at my house on a weekly basis where I would pay an agreed amount. This was going well but then the loan company went into liquidation and the agent stopped calling. The last payment was made approx 10/11 years ago. I’ve now had a visit at my house from a debt collection agency saying they’ve bought the loan and I now owe the money to them.
Where do I stand with this situation?
Sara (Debt Camel) says
Hi joh56, it is likely that this debt is now “statute barred” – see https://debtcamel.co.uk/statute-barred-debt/ which explains more about that and what to do if you aren’t sure it is statute barred.
Karen says
Hi, Moorcoft debt agency has been sending me letters about my phone contract from three network that I haven’t paid due to my financial difficulty. Everytime I received a letter from them, I always phone them back and tell my financial situation. But when I phone them on the first week of December 2015 to agree with repayment option plan, they said, the account is not with them anymore, and they said that three took it from them. And they told me to ring Three. What’s happening? Pls enlighten me as I am very confused now. Why did three get my account from Moorcroft?pls help me with these. Thank you.
Sara (Debt Camel) says
Hi Karen, sometimes a debt is SOLD to a debt collector, other times a creditor just PASSES it to the debt collector to try to collect. It sounds as though 3 have done that, and as Moorcroft didn’t manage to collect the money from you, they have sent it back to 3. I suggest you phone 3 and offer a repayment arrangement to them.
Karen says
Thank you Sara, but do you think they pass it onto another debt collector agency? Moorcroft said that three took my account. Would i be issued CCJ for phone contract? I am going back to my country somewhere in Asia because I am jobless here already.
Would they still chase me in my country?
Sara (Debt Camel) says
3 may pass it on to another debt collector, or sell the debt to a debt collector. Yes you can get a CCJ for a mobile contract – this is much less likely if you make an arrangement to pay, but if you are currently unemployed and about to leave the country it is hard to see how you can make a sensible offer. I can’t say you won’t be chased back in your country, but it’s not that likely. If you have any thoughts of returning to the UK , you probably don’t want to come back to find that you have a CCJ.
Clair says
Hi
I have paid off a trust deed but i have found out now that I have other companies looking for the payment of this debt. Some of them are from 2009 and payday loans companies. There is 1 that was from a door step loan that on my credit file is settled but companies have effected my score. I was a lot younger and I have been trying to fix my score for my mortgage next year,
Sara (Debt Camel) says
Hi Clair, I’m guessing from the Trust Deed that you are in Scotland? If so, I suggest you talk to National Debtline in Scotland.
The reason why it is important you talk to an advisor who is familiar with Scottish debt is that it can be quite different, in particular the times for a debt becoming statute barred are different. From your brief comment it is possible all these old debts are statute barred, but you really do need to talk to a Scottish expert about this.
Steven Mulrooney says
Hi,
Lowell have sent demands for an old debt which they allege is mine from TMobile. I have no knowledge of this and indeed, I have had a TMobile/EE account satisfactorily running with no defaults on a different account number for a number of years.
The demands from Lowell are being sent to my son’s address with my Christian name. My son has the same initial as me but a different Christian name. He has no knowledge of the old TMobile account.
I phoned Lowell and they would not discuss the matter unless I confirmed my DOB and actual postcode. I declined to do this so they would not discuss further. The demands continued until they sent a letter saying that the debt had now been transferred to Rossendale Ltd.
I have sent your ” prove it” letter, by email to Rossendale adding that I do not reside at my sons address but I will give them my address if they can prove that the debt exists. I suspect they too will not discuss unless I prove who I am.
We seem to be at stalemate. Do you have any advice?
Sara (Debt Camel) says
If you are sure this debt cannot be yours, then my suggestion is to give them your address and date of birth – you have nothing to lose by this and it should be the fastest way to get their error sorted out.
Iain says
I have a account with O2 Mobile Phone provider and I complain about it to o2 for failure to obey my instructions according. I have 1 year battle to them about the issues I am facing under my rights have been not been resolved.
They passed the debt to wescot while my complaint is ongoing with O2 Mobile Phone provider.
They cannot do this at all because it’s called dispute resolution.
Sara (Debt Camel) says
Mobile companies can be very difficult. Can I suggest you go to your local Citizens Advice and ask for their help in resolving the dispute?
Frank Bagfield says
I took out a loan in 2014 with QuickQuid. Due to losing my job and financial reasons I was unable to pay on my promise date. The loan was then sold onto a 3rd party called ‘Red Castle’. I resolved my debt with the 3rd party and paid my debt in full. Since then I have not been able to apply for anything! Out of curiosity I logged into my QuickQuid account a few days ago and to my surprise on there system it still says I have an unpaid debt of £96 even though it was sold onto a 3rd party. I’ve contacted QuickQuid and I’ve made them aware of the situation and I was told there was nothing they can do as the loan was sold to a 3rd party and that I needed to contact them. I contacted the 3rd party ‘Red Castle’ and they confirmed that I had paid the debt in full on a said date, they also stated I shouldn’t be on the QuickQuid system owing £96 to them when the debt was sold on. I’ve contacted QQ twice now requesting to be contacted by management and they have failed to do so twice. I’m in a rut and I have no idea how to clear my name for something that’s been paid. :/
Sara (Debt Camel) says
Hi Frank, QQ need to update their reporting to the credit reference agencies to show a zero balance. You need to write to their Data Controller – their ICO registration number is Z9919587 and the address is here: https://ico.org.uk/about-the-ico/what-we-do/register-of-data-controllers/. IF QQ won’t sort this out, you need to put in a complaint to the ICO.
jeannette says
i took a lone out in 2008 but got sent to prison thus resulting in losing my business home and all possessions the bank sold the debt and they are now pursuing me for the money and some can you advise please
Sara (Debt Camel) says
Hi Jeanette – this old debt may well be statute barred, see https://debtcamel.co.uk/statute-barred-debt/.
I suggest you talk to National Debtline 0808 808 4000 who will be able to look at this and any other debts you have and talk about what your options are.
Thomas says
Hi there.
I defaulted with Hitachi Loans in January 2015 with a balance of £11144. Cabot bought the debt from Hitachi and I currently pay Cabot £50 per month. However, on my Call Credit report, although it shows that my default balance was £11144, it shows the *current* balance as £15408. A recent letter from Cabot also gives the balance as £15408.
Does this mean that Cabot have added interest and charges since buying the loan? And are they allowed to do that? I’m furious, as you can imagine!
Thanks in advance for any advice.
Sara (Debt Camel) says
Have you asked Cabot for a Statement of Account? That will clarify what the current balance is. Call Credit isn’t a totally reliable source of information.
A debt collector that has purchased the debt can only add interest and charges if the original contract has a provision that expressly allows this – this is unusual. If Cabot are adding interest and/or charges, you should ask them why? And ask for a copy of your original credit agreement.
Thomas says
Thanks for your response. I’ll write to them asking for a Statement and the original Credit Agreement.
Sarah says
Hiya! My boyfriend has a default on his account. He has tried contacting Quick Quid who have informed him that even though they put the default on his account the debt was sold on to a debt collection agency.
We contacted the debt collection agency who recognise the debt but have also said they have closed it. We want to pay the debt so it will show as satisfied on his credit report as it’s only £183, but we aren’t getting any further responses from the debt collection agency with any of the original paperwork or ways to pay this.
Any advice on what to do next?
Thanks,
Sarah
Sara (Debt Camel) says
If he had several loans with Quick Quid (or indeed with any other payday lender) he could could consider whether to put in an “affordability complaint” to the lender, see https://debtcamel.co.uk/payday-loan-refunds/. If this is upheld, then not only would he get a refund but it is likely the defaulted record would be removed completely from his credit record. Worth a try?
It isn’t worth complaining to QQ if he only had one loan.
Otherwise put in a formal written complaint to the debt collector asking who you should pay. This isn’t going to make a huge difference to his credit score though.
Daniel says
Hi,
I have a debt with Santander of around £270. I bought something on credit when i was very young and stupid and due to losing my job couldn’t repay it and left it. In about 6 months this debt will become statute barred. I had not received a letter for years and now a new dca has started sending me letters. What is the best route to go down here, i’m now in a position where i could pay the whole debt. But should i leave it to become statute barred or offer to pay a reduced final settlement or pay in full. Could you also tell me how each action would effect my credit score. Thanks very much.
Sara (Debt Camel) says
It sounds as though you have been found… if you ignore the letters the DCA may decide to take you to court for a CCJ before it becomes statute barred, the CCJ would then be on your credit record for another 6 years. They may not as it’s a small amount of money, but it’s a risk.
You haven’t said if the debt is showing on your credit record. Assuming it is, then it should have a default date of about 5 years ago. In which case this default will drop off 6 years after the default date whatever you do, settle it fully, settle it partially or ignore it (but as i just said, a CCJ could appear if you ignore it).
Dawnie says
Hi,
I have several unsecured debts dating back to my marriage, some joint, some sole – although one was due to ex. We separated Oct 2009 and I became a single parent to 4 and I’m a carer to 1 of them. I stuck my head in the sand & by the beginning of 2010 I’d stopped paying everything, opened own bank acct & debts climbed. I stupidly figured my problems would go away.
Fast forward several years. I have a new partner, who I am also now carer for. CSA makes child maintenance payments when ex can be located, home is rented, no assets, no income. I’ve never responded to any mail from any collection companies, as they were unsecured, (eg online catalogue) and over 6 yrs old now can I go down the statute-barred route? I today received a letter from Lowell (opened as the address was a court) and it’s for JDWilliams, the last known payment & order details I can find are 2007 – how do I find out if last contact was over 6 years? I don’t have a clue what to do :(
Sara (Debt Camel) says
I suggest you talk to National Debtline 0808 808 4000 about how to reply to this – they can discuss whether this is statute barred and what your options are.
Vernon smith says
Hi
In 2014 I was on holiday in the us when I inadvertently ran up over £2000 of data charges on my Vodafone mobile. I telephoned vodaphone immediately to find out what to do, but they simply said I would have to pay. On returning from the Us 3 months later I disputed the charges on the grounds that I had a £42 daily cap, Vodafone stated that I had opted out (but were unable to provide any evidence of this). On reaching deadlock I refereed the matter to the telecoms obdudsman who opened a case. This was the last I heard from either the obudsman or Vodafone.
Fast forward to last week when I made an application for a remortgage and was rejected because of my credit score. I was suprised as never had any credit issues . On getting my credit report I found that lowells had registered a unpaid debt on the record. On phoning Lowell they informed me this was debt bought from Vodafone. I explained that the debt was not owing as disputed and had been referred to the obudsman. They say they have no record of this.
I phoned the ombudsman to find out what had happened only to be told that the case had been archived in error and no resolution had been reach. They have now reopened the investigation. The ombudsman say this could take anything up to 4 months to resolve.
My question is do Lowell have the right to register this as bad debt on my record even though it is disputed? I do not want this to hold up my remortgage any longer if i can help it and certainly don’t want to wait 4 months.
Sara (Debt Camel) says
It is a great pity you didn’t either follow up in the Ombudsman investigation or check your credit record a few months before applying for a remortgage… I doubt there is anything you can do now apart from ask the Ombudsman to give this some priority because of the error on their part. You can add a note to your credit record to say the debt is disputed but it’s dubious whether that would make much difference.
Sue Bentham says
I owed capital one credit card £390 and about 8yrs ago i went to citizens advice and because I hadn’t requested the credit card they advised me that I didn’t have to pay it as I was struggling to pay my bills.
Now 8 years later I have a company called Cabot chasing me for the payment, I explained about the citizens advice situation and they said they need proof which I don’t have with it being so long ago.
What can I do?
Sara (Debt Camel) says
If you haven’t made a payment to it for 8 years, it is possible the debt may be statute barred, see https://debtcamel.co.uk/statute-barred-debt/. I suggest you go back to Citizens Advice or phone National Debtline 0808 808 4000 to confirm this with them and talk through what your options are.
Lizzie says
Hello I had fraud at a shop in 2010 claiming I had purchased a notebook on a payment plan, in 2012 the so called person stopped paying it so I was getting the letters stating I needed to pay it I rang this so called company/shop and told them I had no knowledge of this ect they sent forms for me to fill in and a form for me to sign 6 times to match by the contract that was signed at the time of if the item been sold they got back to me stating it was not me and they did not match and will try and fined the person that did it in mid 2012 and not heard anything since the company closed in 2014 I have had a letter from deat agency saying I still need to pay the x amount what do I do as this was 4 yrs ago?
Sara (Debt Camel) says
I suggest you write to the debt collector saying this is not your debt, you are not the person who purchased the notebook and give then the history of what has happened. If you still have the letter/email from the shop confirming that you are not the right person, enclose a copy of that. This may end the matter… if it doesn’t, then phone National Debtline 0808 808 4000 and they can talk to you about what your options are.
Pitu says
Hi, I have received a letter demanding about £300 for a defaulted payment. However, when I check my Equifax report the default is shown only for £38. It was a mobile contract a while back. If I pay the £38 could they open another default or they will have to settle? Thanks
Sara (Debt Camel) says
They can’t add a new default, but you can’t rely on the Equifax balance being correct. Ask the debt collector for a statement of account as you don’t think your balance is anywhere near that much and point out what Equifax says.
J says
Hi,
I have three defaults on my account all with Lloyds – one for credit card, one for loan and one for an overdraft – they all defaulted in around feb 11 and i haven’t made any payments since – i know they will drop off my account in a few months but i want to offer full and final settlements to get them changed on my CR to settled or partially settled and to ensure they won’t issue CCJ’s – I actually believe they are already statute barred because although the default date is February i believe last payment/contact was well before that likely around six months. I haven’t had any correspondence from them for years and have no idea of account numbers or who the debt is currently with so my problem is i don’t know who to write to or what kind of letter to write – do i do a full and final offer letter saying the debt is stature barred or unenforceable?
I have checked Experian and one is now listed as first credit instead of Lloyds but the two others are still listed as Lloyds. What do you think my best course of action here is? Sorry for the long ramble
Sara (Debt Camel) says
It is going to be pretty hard to offer a full and final settlement whilst denying that you owe the debts – and you don’t really want to admit liability in case the debts aren’t statute barred. I suggest talking to National Debtline 0808 808 4000 about your options.
Sian says
I have checked my credit file and have two defaults that are exactly the same. One from barclaycard and one from MKDP should both be on there or should the barclaycard one have been removed? I also asked for a copy of the agreement from MKDP, which they failed to send, they removed the debt for a while but they have put it up again is this allowed?
Also I had a default years ago with southern water but it was cleared and now it’s showing a £65 debt, they have not written to me to say this was a default and I’ve been paying monthly so how can they do this?
Sara (Debt Camel) says
Is the balance on the barclaycard debt showing as zero? If so this is what should happen when a debt is sold to a debt collector.
Whether a default should show if the creditor can’t produce the CCA agreement is an interesting question. If you haven’t already done this, I suggest putting in a written complaint to MKDP asking them to remove the default because they have failed to produce the CCA. You may find this http://www.legalbeagles.info/forums/showthread.php?83943-I-got-a-default-removed-using-Grace-amp-Anor-v-Blackhorse!-Sharing-my-experience&p=667566&highlight=#post667566 useful reading.
re the Southern Water, i suggest phoning them up and asking what is happening.
James says
Hi there I was wondering what is the legal standing of a default not on my credit file. I was made bankrupt in July 2011 and November 2011 Barclaycard sold on my debt to a company call Ttispc. Is this legal to sell this debt. I have asked Barclaycard about this and all I was told was this is what we do. Now what I understand about bankruptcy is all debts are frozen and wiped out. These two accounts Barclaycard and Ttispc both had shown until 2014 as default and not as settled, until I send then a number of letters of complaint. But I believe the Ttispc marker on my credit file should be removed completely as this in my eyes should never have been sold..
Sara (Debt Camel) says
It is legal to sell this debt – it wasn’t wiped out until you were discharged from bankruptcy.
The way this should have been shown on your credit record is:
– Barclaycard should have added a default date that was no later than July 2011 when you went bankrupt. When they sold the debt to Ttispc, Barclaycard should have marked the debt as having a balance of zero.
– Ttispc should have added the debt to your credit record with the same default date that Barclaycard had. After you were discharged, ttispc should have set the balance owing to be zero and the debt should show as settled or partially settled.
– if the above has been done correctly both debts will drop off your credit records at the same time your bankruptcy does in July 2017.
See https://debtcamel.co.uk/credit-file-after-bankruptcy/ for details.
Mr Taylor says
Hi,
I was mis-sold a loan in my late teens (approx. 2005/2006) by Co-Op… I was earning £500 part time, paying £200 a month car insurance, another loan at £100 and they sold me a loan one day when I rang to check my balance, that I ended up increasing from £1500 to £7500 with them and paying £300 a month. This defaulted a long long time ago and was cleared from my credit file over a year ago now.
I returned home from work yesterday to a letter from a debt collection agency which I immediately threw in the bin, the same place as one I received 6 months ago… I had not been chased for this in years, maybe as far as 5 years ago but no exact memory. Then I reflected… I’m now financially sound and in a position where I am (after a lot of hard work clearing my poor credit history) in a situation where I am about to get my first mortgage with my fiancée. It’s now worried me sick… The agency are chasing over £8,000 and I really don’t know what to do… I thought this had long gone and I had a new start, and the information I’m getting leaves me torn over whether I should or should not be worried about it.
The last thing I want is bailiffs turning up, or another CCJ coming from a loan that I took out initially over 10 years ago… Is it possible to get any advice on this?
KEY FACTS
I don’t know who the DCA is now that the letter is in the bin…
I can’t recall exactly when the loan was taken out or for how long – but I know it was in my late teens as I was still only working part time (05/06)
I can’t recall how many payments I actually made to the loan (although I remember the monthly repayments were around the £300 figure)
I never received a CCJ for it (I don’t think) – although I did receive a CCJ for the other loan I had running simultaneously
The loan was mis-sold to me in a way that would never be done now (I work in the world of estate agency so have become au-faix with lending!)
Thanks!!
Sara (Debt Camel) says
I think you need to go and dig that letter out of the bin … you don’t want the debt collector starting a Claim against you for a CCJ if you are hoping to make a mortgage application soon. NB I’m not saying pay it, but you need to know who the debt collector is!
Then you need to try to find out by getting your old bank statements when you last made a payment to this. If this less than 6 years ago the debt cannot be statute barred, see https://debtcamel.co.uk/statute-barred-debt/.
You could also ask the creditor to produce the CCA agreement – as the debt is so old they may have difficulty doing this – see https://www.nationaldebtline.org/S/factsheets/Pages/gettinginformationfromyourcreditors/creditagreementadvice.aspx.
Karin says
Hi,
The article says that debts on a debt management plan can also be sold. But can this happen at any time the creditor decides so or only when payments to the DMP have been missed?
I ask this because as far as I understood, a default notice must be sent before the debt can be sold. But how can a creditor default someone on a DMP when they’ve been making payments? Also how would this move from a loan to DMP to DCA show on the credit file?
Thanks!
Sara (Debt Camel) says
A debt in a DMP where all DMP payments are being made on time can still be defaulted. Indeed it SHOULD be defaulted if the “arrears” (which are measuredagainst the original contract not the DMP amount) get to 3-6 months. See https://debtcamel.co.uk/dmp-credit-rating/ for more details on this.
If a debt is sold to a DCA, the original creditor marks the debt a having a zero balance and the new creditor adds the debt with the same default as the old creditor used.
Karin says
Thanks for clarifying that Sara,
But can the creditor just decide to sell the debt at any point? For example, if the account is not on a DMP and payments have been missed but a default has not been recorded on the credit report? Can they just send the default notice and then sell the debt without the creditor recording the default on the credit file, just the DCA recording it?
Sara (Debt Camel) says
If they do, you can ask to have the default backdated: https://debtcamel.co.uk/debt-default-date/
SAM says
I sent a CCA request with a £1.00 postal order to Mr Lender on the 05/06/13 re a balance they said I owed and I disputed. I was advised to send the CCA request to Mr Lender even though they told me they had ‘sold’ the debt to Motormile finance. I received no reply from them. Now I am being chased for this ‘debt’ by Motormile Finance and due to the passage of time I wish to refresh my memory as to how these things work. Any advice would be greatly appreciated.
Sara (Debt Camel) says
This National Debtline page covers asking for CCA agreements and a statement of account: https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
BUT in addition to that, if you used payday loans a lot, you pay want to look at whether you could be able to get refund of interest on loans you were given that were unaffordable. See https://debtcamel.co.uk/payday-loan-refunds/
Rahma says
I have a debt of £130 , Account started 20/10/2010 with original creditor , I never made a payment (I simply couldn’t, I was a student in that time).
Never heard from the creditor after few months of debt starting date .
But recently July 2016 , One of the (Motormile finance UK LTD ) placed a default just before 3 months before the debt become 6 years old.
*** I don’t even recognise the company .
Can they do this ? not the original creditor but another debt collection company put a deafault five and half years after missed payment ?
Is this acceptable ?
Sara (Debt Camel) says
They can add a default but it must be the correct default date, which in this case should be over 5 years ago, see https://debtcamel.co.uk/debt-default-date/ for how to ask for this to be corrected.
Martin says
I currently have an account with mmf and have been paying off my debt ever month yet my credit file has neever been updated since way back in febuary. Despite phoning and asking for them to update it so that i can see what ive still to pay they still dont do it. What do you think i should do
Sara (Debt Camel) says
Hi Martin, who was the original lender? When did you stop paying the debt and what is the default date on your file? I’m asking this because MMFs failure to update the balance on your credit record may not be the only thing that they have done wrong!
To get the balance on your credit records corrected, you need to put in a complaint in writing, email is best, don’t try to communicate with them on the phone as it’s too easy for them to ignore what you say. Put COMPLAINT in the subject line! Mention that you have already asked them to update your credit record by phone ( give the dates if you remember them) and say nothing has happened. If they don’t sort this within 8 weeks, complain to the Financial Ombudsman. It’s a simple and friendly service and you may even get some compensation as well as your credit record sorted.
Charlotte O'Neil says
Hi Everyone,
IN NEED OF ADVICE!
I had an account with Santander Bank which I ended up being defaulted as I missed a couple of overdraft repayments. I was advised by the Bank that the account had been sold to Hoist Finance ( a debt collection agency). I received a letter from a company called Robson Way who are part of Hoist Finance with the details of the debt and was advised to contact them to set up repayment plan. I did this and now have a payment plan set up so that the total amount will be settled at the end of this month. However in the interim an old employer who I recently went back to work for for a month has through an admin error on their part paid my wages into the defaulted/sold account. After waiting to see if the money bounced back to my employers account (which it did not after 2 weeks of waiting) my employer did a BACS trace on the payment which shows that it was received by the bank with no problems. When I speak to Santander they are telling me that they cannot see any money going into the account, they are telling me that the debt collectors will possibly have the money now as they have been sold the account. However when I call the debt collectors they are telling me that they only bought the debt and that they cannot receive money through the account and tell me to go back and speak to the bank. I am going round in circles trying to retrieve this money…..can anyone offer any help of advice?
Kind Regards
Charlotte
Sara (Debt Camel) says
It is hard to tell who is right here. Certainly the debt collector cant access a Santander account. It is possible that Santander have set up their system to re-route payments into an account where the debt has benn sold to go straight to the debt collector. I suggest you put in a written complaint to Santander asking them to locate and return this money. If they reply saying they sent the money to the debt collector with the exact details (date, account, reference) then put in a written complaint to the debt collector. Otherwise take the Santander complaint to the Financial Ombudsman.
Fergie42 says
Hi
I have been in a payment arrangement with 1st Credit for about 3 years paying £50 per month on an old TSB Credit card.
I have just had a statement from them (I don’t recall ever seeing one before) and they have added £147.88 interest increase on in June this year.
The statement shows the interest rate as blank but I am confused that I am paying interest in the first place never mind it being increased.
Does this sound right?
Thanks for your hep
Sara (Debt Camel) says
You need to ask 1st credit to produce a Statement of Account and also the CCA agreement for the debt – this will say whether a debt collector is allowed to add interest after a debt is sold. There are template letters here https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx you can use and if you aren’t sure how to interpret what you get back, phone National Debtline 0808 808 4000.
Suzy says
HI All,
Just thought i would update you on my ” Full & Final offer saga, please dont give up hope keep submitting your offers i did heres a bit of background,
Old personal loan debt taken out in 2004 , defaulted in 2012 balance to pay approx £3500. passed to Debt Collectors -more then one !
Just had a conversation with the current Debt collectors who i guess paid pennies for the account ,
They are willing to accept £690 as a Full & Final on the debt of £3500 .
I have asked for this in writing to say the debt will not be passed on to any one else to chase also my credit files to be updated accordingly
Paoka says
I did an offer like this and they still put a ccj on my file
Is that allowed?
Sara (Debt Camel) says
Did you defend the CCJ case?
Paoka says
They served me court papers, I made offer and they excepted a settlement of monthly payments.
Sara (Debt Camel) says
OK, it sounds as though you didn’t make a full and final settlement offer. I suggest you talk to National Debtline about whether you should have got a CCJ – they can talk through your case in detail: 0808 808 4000.
Paoka says
I thought that’s what I’d done?
I filled in the forms online and thought that’s what I was doing.
Sara (Debt Camel) says
IF you admitted the debt and made an offer of monthly payment to the court, then it is correct that you would get a CCJ. If you are still unsure what has happened, call National Debtline on 0808 808 4000 and talk through the details of your situation.
Brian says
An old debt of mine has been sold to a debt collection firm despite the original creditor failing to satisfy a CCA request.
The first request was made via MDR, which was eventually sent back to the creditor; the second request came via Robinson Way and ended in the same fashion with the debt being returned to the original creditor. The original creditor has not communicated further, and the CCA request remains unfulfilled.
Now, I have received a letter from a new company saying they have bought the debt from the original creditor. I was under the impression that the failure on two occasions to satisfy the CCA request has put the debt into serious dispute and the original creditor are flaunting the Act and the OFT guidelines on debt collection by selling on a disputed debt.
Sara (Debt Camel) says
Are you disputing it? Not being able to produce a CCA means it is not enforceable in court but the debt still legally exists and can be sold. I suggest you write to the new owner and say as the creditor is unable to produce a valid CCA agreement you will not be paying anything to the debt.
Debbie says
I was making reduced payments to Lloyds/TSB for a £6000 credit card debt. This was the case for around ten years as I developed bi-polar disorder and have been in receipt of DLA ever since . A few months ago they sold my debt on without informing me. I was really worried as I just received a letter from Idem saying I had to pay them. I phoned Lloyds to check because I didn’t want to pay a company I had never heard of without confirmation. They were really rude and said they did not have to tell me anything as I was no longer an account holder. I started paying idem but it has become a nightmare since my agreement ran out. I have filled in expenditure forms twice and have been asked to provide yet another one only 3 weeks after the last one for a different department. All these are put on a time limit which is difficult because my condition means I am often too ill to be able to deal with things at a set time. I have been in and out of hospital several times in the past few months. Lloyds are well aware of my mental health problems and other long term health problems and know that that they are incurable. I have had to re-apply every year, stating reasons for needing to make the reduced payments. I notice that debts should not be sold if the person has known mental health problems. I wondered if there would be any benefit to my complaining or would it just mean more hassle and it being passed back to Lloyds/TSB who I often found more difficult to deal with than idem.
Sara (Debt Camel) says
Hi Debbie, who would you prefer to deal with your debts, Lloyds or Idem? It sounds as though Idem are being pretty difficult keeping asking you for expenditure forms?
Nicholas says
Hi if I accumulated a debt in Britain and a company has exported the debt to Scotland am I correct in thinking that the debt is now null and void due to not actually being created in scotland
Sara (Debt Camel) says
No. just as the debt wouldn’t become null and void if you moved to Scotland, it doesn’t make any difference if the creditor does either.
Christy says
Hi!? I’ve recently come to some trouble with my credit involving my car. I have had my vehicle since 2014, in 2015 I was without a job for 3 months and was unable to make a pull payment therefore I eventually fell over 90 days late. I spoke to my lender and they agreed to let me pay the “passes due” balance in full. In January 2016 I took out a 1500 loan to pay for the past due balance and for the rest of 2016 made my payments on time and in full. However this month I tried to get a new car… and found out the my lender sold my car debt to a collection agency after I paid the past due balance… I’m guessing they thought I would no longer make payments. But the entire year I have been paying them and they have given me no credibility to show for it. “Note I’ve been paying my original lender” not a collection agency because I had no idea who they sold it to… and now my credit score is awful. Any advice would be very helpful on what to do.
Sara (Debt Camel) says
You have two separate problems. First the lender has added a default to your credit record. Unfortunately if you were 3 months in arrears this is correct :( The fact you came to an arrangement and repaid the arrears doesn’t change the fact at that point you were 3 months behind.
Second the fact you think your debt has been sold to a debt collector. I’m not sure why you think this? Have you checked your credit records to see what they say? See https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
Robbie says
When a company sells on my debt they are also selling my personal details, where do I stand with data protection. Surely they can’t sell my personal details without my consent.
Sara (Debt Camel) says
When you took out the debt, deep in the T&Cs there wouldhave been a clause permitting the lender to sell the debt. So you have consented to this and this includes the new owner knowing how to contact you etc.
Thomas says
Hello.
I’m wondering what happens if the debt is in one country, but you now live in another country?n IS debt sold between countries? Which countries laws are used?
HSBC, specifically.
Thanks, Thomas.
Sara (Debt Camel) says
When a debt is sold, it doesn’t change the T&Cs of the original debt, which will have stated what jurisdiction is appropriate for that debt. But debt can be collected across borders where a judgement in one country can be enforced in a different country. It is going to depend on the type of debt and what the countries are. You may find this useful: https://debtcamel.co.uk/can-creditors-find-me/.
Gareth says
Hi Sara
I am told by Lowell that the HSBO issued a default on a debt I had for less than £500, and the debt was sold to them (Lowell) with a default already issued, on my credit file the default shows only Lowell?
I have written to Lowell explaining that I never received any default notice from HSBO and that the default should be removed, they have written back to me and said that HSBO issued the default and that they (Lowell) would not remove it weather or not i received notice.
What can I do to get it removed?
Thnaks
Gareth
Sara (Debt Camel) says
The first thing is to check your credit records with all three credit reference agencies, to see if a default from HSBO shows on any of them – see https://debtcamel.co.uk/best-way-to-check-credit-score/ for how to do this.
Then you need to decide if the default date is reasonable – I am assuming you did default on the debt, because if you had no idea what it was or had paid it, you would have said. What sort of debt was this? When did you first miss payments? When did you last make a payment to it?
Patrick Cambridge says
Hi, I recently had a CCJ issued against me to a debt collection company. The CCj states that I must pay them back but when I contacted them to ask for banke details they told me my debt had been assigned to another company. However the CCJ clearly states that I should pay the first company. How do I stand with this as I am concerned that I will be charged by two different companies. I contacted the court about this and they told me the CCJ wass for the first company annd not to pay the second one and they had never heard of this before. Patrick
Sara (Debt Camel) says
I suggest you ask the first company to put it in writing who your debt has been assigned to and that you should pay that person.
Si says
I’ve heard that if a debt is sold on, the debtor is no longer liable to pay the DCA as that original debt has been paid – (as per section 43 of The Bills of Exchange act). I’ve searched for this act online and read it but it might as well be in another language.
Is this not the case?
Sara (Debt Camel) says
This is legal rubbish, don’t believe everything you find on the Internet!
A debt is NOT a Bill of Exchange, so that Act is irrelevant.