Arrow Global and Buying Debt - Querky Defence

[layperson]

I thought I share this. I cannot confirm its authentcity as it was discussed verbally with a colleague of mine.

A claim was made by a solicitor acting on behalf of Arrow global of a debt they bought from HSBC bank. The defendant made a defence, received a confirmation court letter that defence received and passed on to solicitors. No response from solicitors for a few month now. To clarify no response to defence at time of writing this post.

The defence was rather weird. It requested an audited confirmation of the value of the debt bought by Arrow global from the bank. Assuming the debt is bought at a lower value by the offer letters put forward by Arrow Global for pre-action resolution.

So as a point of practice what is the status of the case? Is such a request valid in a defence? Is the case stayed indefinitely?

[charitynjw]

Re: Arrow Global and Buying Debt - Querky Defence

Hi layperson

I can't see how the purchase price for the alleged debt, (ie the amount paid by AG to HSBC, which would in any case be commercially sensitive info), can have any bearing on the amount allegedly owed by a debtor under the original agreement.
If the case is stayed, it will remain so until/unless the Claimant discontinues the claim or applies to lift the stay. The Defendant could apply to have the claim struck out.

[layperson]

Re: Arrow Global and Buying Debt - Querky Defence

Thank you for your post. Say the debtor owed £100 to HSBC. If AG bought the debt at £50 from HSBC, then HSBC would be at a loss off £50 which may be filed as such. Does AG then have right to claim anymore than what it paid for the debt?

[charitynjw]

Re: Arrow Global and Buying Debt - Querky Defence

Thank you for your post. Say the debtor owed £100 to HSBC. If AG bought the debt at £50 from HSBC, then HSBC would be at a loss off £50 which may be filed as such. Does AG then have right to claim anymore than what it paid for the debt?

The payment (allegedly) owed under the original agreement is known as a 'chose (or thing) in action' for the purposes of the Law of Property Act 1925.
The benefit of the agreement (eg sums owed) can be assigned to another party; the debtor's consent is not needed.
Once the assignment has been notified to the debtor, the new debt owner, the assignee, then has the right to collect the assigned value, regardless of what they may have paid.
This right includes the right to sue for it.
Of course, if they do claim via court, they have to prove that the monies claimed are legally owed.