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Credit agreements

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  • Credit agreements

    Good afternoon looking for some advice please on credit agreements. If a creditor has sold a debt what would I be looking for in terms of the right to sell on to DCA. Thank you
    Tags: None

  • #2
    Re: Credit agreements

    Originally posted by Midlandcb View Post
    Good afternoon looking for some advice please on credit agreements. If a creditor has sold a debt what would I be looking for in terms of the right to sell on to DCA. Thank you
    Hi,

    Most if not all agreements will have a clause stating that the creditors can share details with 3rd parties and may sell or assign the account to a 3rd party. The account is sold including the benefits and rights of said agreement.

    nem

    Comment


    • #3
      Re: Credit agreements

      There are several other important things which need to be considered not just the original creditor's right to sell the debt.

      Of paramount importance is what is written in the Deeds when the account is assigned.

      The "conditions" can restrict what the debt purchaser can do with the account under their ownership such as whether they can litigate (or not) or whether they need written permission from the original creditor before litigation can commence.

      There can be conditions (restriction) on what information they're entitled to request from the original creditor after the assignment and/or how many requests they can make and what may be charged for each request. This would make a debt purchaser think carefully as to which accounts to pursue if any are disputed.

      There can be a time limit imposed for returning the debt if it becomes uncollectable (hence the flurry of phone calls and letters immediately the debt is assigned).

      Another issue is whether the debt purchaser can prove a legal assignment took place giving them the right to own the debt and therefore collect it. In my PRA v Diana Mayhew case the Claimant failed to prove the assignment > http://legalbeagles.info/forums/show...l=1#post723304

      Obviously the debt purchaser would need to be licensed in order to collect the debt

      And so on.

      Di

      Comment


      • #4
        Re: Credit agreements

        Thank you once again Diana M.
        There notice of assignment doesn't look to clever to me. If I posted on here what I have recived would yourself or any member be willing to take a look please?

        Comment


        • #5
          Re: Credit agreements

          Originally posted by Midlandcb View Post
          Thank you once again Diana M.
          There notice of assignment doesn't look to clever to me. If I posted on here what I have recived would yourself or any member be willing to take a look please?
          I'm sure a forum member will be able to comment on your Notice of Assignment (make sure you remove anything which could identify you when you post it up).

          There should be two NOA.

          One from the original creditor to say "Goodbye" which must tell you who they've assigned the debt to, how you can pay them and the balance outstanding etc.

          Another one from the debt purchaser to say "Hello" with contact and payment details etc.

          Don't be surprised if they come/came in the same envelope because sometimes the debt purchaser has the right to issue both NOAs using the original creditor's headed notepaper.

          There's also a big difference between a Notice of Assignment and the Deed of Assignment which is a confidential document (about a foot thick!) between the seller and the buyer.

          However my firm asks the court to order disclosure of the Deeds (unredacted) because the "conditions" can be relevant and somewhat interesting

          Di

          Comment


          • #6
            Re: Credit agreements

            Originally posted by Diana M View Post
            I'm sure a forum member will be able to comment on your Notice of Assignment (make sure you remove anything which could identify you when you post it up).

            There should be two NOA.

            One from the original creditor to say "Goodbye" which must tell you who they've assigned the debt to, how you can pay them and the balance outstanding etc.

            Another one from the debt purchaser to say "Hello" with contact and payment details etc.

            Don't be surprised if they come/came in the same envelope because sometimes the debt purchaser has the right to issue both NOAs using the original creditor's headed notepaper.

            There's also a big difference between a Notice of Assignment and the Deed of Assignment which is a confidential document (about a foot thick!) between the seller and the buyer.

            However my firm asks the court to order disclosure of the Deeds (unredacted) because the "conditions" can be relevant and somewhat interesting

            Di
            Since most
            Debt Purchasers are both significant companies with adequate resources,
            I suspect that looking for loopholes is very much a case of looking for just that "loopholes"

            Comment


            • #7
              Re: Credit agreements

              Ok I'll blank out the private details she I get home and see what If I can post them up. Thank you once again

              Comment


              • #8
                Re: Credit agreements

                Originally posted by Spirit200 View Post
                Since most
                Debt Purchasers are both significant companies with adequate resources,
                I suspect that looking for loopholes is very much a case of looking for just that "loopholes"
                Utilising sections of the Consumer Credit Act for what Parliament intended it should be used for (to protect consumers entering into credit agreements) is not the same as looking for loopholes.

                Di

                Comment


                • #9
                  Re: Credit agreements

                  Originally posted by Spirit200 View Post
                  Since most
                  Debt Purchasers are both significant companies with adequate resources,
                  I suspect that looking for loopholes is very much a case of looking for just that "loopholes"
                  My post still stands, I can that understand people on LB looking for loopholes but the debt purchasers are well resourced and able to "strike back"

                  Comment


                  • #10
                    Re: Credit agreements

                    Originally posted by Spirit200 View Post
                    I can that understand people on LB looking for loopholes but the debt purchasers are well resourced and able to "strike back"
                    And then again there are law firms like mine who specialise in consumer credit who defeat the ”well resourced” debt purchasers in court (or before if they Discontinue their claim) on an almost daily basis.

                    Using law is not a loophole.

                    Di

                    Comment


                    • #11
                      Re: Credit agreements

                      Hi all I'm not looking to dodge my debts just want to make sure I'm paying who I should be. I can't afford to pay them twice. Sorry if it comes accross that way.

                      Comment


                      • #12
                        Re: Credit agreements

                        Originally posted by Midlandcb View Post
                        Hi all I'm not looking to dodge my debts just want to make sure I'm paying who I should be. I can't afford to pay them twice. Sorry if it comes accross that way.
                        it doesn't come across that way at all [MENTION=109489]Midlandcb[/MENTION] ... we're here to help xx
                        Debt is like any other trap, easy enough to get into, but hard enough to get out of.

                        It doesn't matter where your journey begins, so long as you begin it...

                        recte agens confido

                        ~~~~~

                        Any advice I provide is given without liability, if you are unsure please seek professional legal guidance.

                        I can be emailed if you need my help loading pictures/documents to your thread. My email address is Kati@legalbeagles.info
                        But please include a link to your thread so I know who you are.

                        Specialist advice can be sought via our sister site JustBeagle

                        Comment


                        • #13
                          Re: Credit agreements

                          I'll try and attach this
                          Attached Files

                          Comment


                          • #14
                            Re: Credit agreements

                            Originally posted by Midlandcb View Post
                            I'll try and attach this
                            Hi all is this what a notice of assignment looks like? It doesn't even say what it is on there.

                            Comment


                            • #15
                              Re: Credit agreements

                              Originally posted by Midlandcb View Post
                              Hi all is this what a notice of assignment looks like? It doesn't even say what it is on there.
                              Hi could anybody advise me on this please. Recived another one today from original creditor but no company heading in there just looks like some one typed it out

                              Comment

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