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Sorry these may seem like very simple questions but I'm struggling to find definitive answers. 1. Can the new owner of a debt (i.e. a debt purchaser) issue a default notice for the purposes of making it enforceable and therefore recoverable through court action? And 2. Does a fixed term loan agreement need to be formally terminated or does this happen automatically once the fixed term has passed and the loan not paid? Thanks for your help guys.
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My view,
1. Yes if it is an absolute Assignment the Debt Purchaser is the creditor thereafter.
2. If the term expires and there remains a balance outstanding clearly that sum is in arrears. There is no need to terminate, the tenure of the loan has expired and thus is at an end.
I'm not sure what angle you are coming from but if it is enforcement. The creditor wouldn't need to issue a default Notice, let alone terminate and would be well within their legal rights to issue an LBC and issue proceedings as there is no accelerated recovery.I am not legally qualified and my comments and observations are not given, nor are they to be taken or relied upon as legal advice. Debt matters are often complex and public forums should not be seen as a substitute for professional legal advice. -
Yes it is and that's pretty much what I thought so thanks very much. It wasn't 100% clear when it came to things like old payday loans (ie fixed term) what applied and what didn't so thanks for that.Comment
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