Car Finance - Transfer of debt

[JPC]

Hi all, i'm hoping someone can help me with a bit of advice.

I had a HP agreement for my car, fell into arrears and on the 22nd of July I received a suspended return of goods order from the court. On the 1st of august, the original finance company sold the debt to a third party which I was not aware of until today. The company that purchased the debt were not aware I was still in receipt of the car or that there was a court order in place. They inform me that the original company I had the agreement with has gone into liquidation and sold most of their debts on.

My questions are:

1. can you sell a debt with a court order in place?
2. Is a court order transferable without going back to court?

Im left in a predicament with having a court order saying to pay x amount on a certain date or risk losing my car and then having a new company saying they have purchased the debt so I need to arrange a payment amount with them. Its all very confusing and I am not willing to pay any money without knowing where I stand.

Thanks in advance for any help and advice.

[des8]

Hi and welcome
Yes, a debt with a court order can be transferred, and the court order remains in place.
So keep your payments up to date and tell the owner that you will keep to the terms of the court order.

They will need to return to court to vary the order, although you can agree with them to pay more if you wish.

[R0b]

Adding to Des' comment, the 'transfer' would be an assignment. So they would need to legally assign the debt in the usual manner in accordance with s.136 of the Law of Property Act 1925 or it is an equitable assignment and the usual rules on that apply i.e. you have to join the legal creditor. Given that the previous creditor is in liquidation it may be that the court is prepared to enforce the order if there is a breach.

To ensure everything is above board, why don't you ask for them for evidence to prove that the debt was purchased by them.

[JPC]

Hi thanks for your replies. So it goes like this for a bit more info. In November of 2018 my hire purchase provider terminated my hire purchase agreement due to non payment(tried to make payment but they refused.....long story). July 22nd 2019 they took me to court and I was court ordered via a suspended return of goods order to pay £300/month to the solicitors firm. I contacted the solicitors the next day to ask for payment details as it's states clearly on the order that I should pay the solicitors. They told me they can't take payment and I need to give it to another company(GCC) now manages the debt. I called them to ask if I could change the payment date from the 29th of each month to the 1st of each month. They then told me they have sold the debt to another company and the car finance company now has nothing to do with it. Upon calling the new company yesterday they have sent me a document this morning stating that they have purchased my hire purchase agreement and that I now need to pay them.

1. As the agreement was terminated how can the new company purchase my agreement?
2. The new asset company are demanding payment however they are saying they will do an affordability check on me to make a fair payment plan....surely if the court order stands the wouldn't be offering this?
3. The new company never knew until yesterday that the debt had a court order against it.
4. The new company believed the car had already been repossessed (it's on my driveway right now)

So in respect to all of above does the court order stand or not or should I request for it to be set aside bearing in mind that there are errors on the order with regards to the order stating I've to pay the wrong person

Thanks in advance

[JPC]

I've tried to upload copies of the original document showing the hire purchase agreement has been terminated and of the new one saying they've purchased the hire agreement but it won't allow me to do it due to the resolution. I can forward it to anyone That replies so they can review the documents if it helps

[JPC]