Hello

[Grambo]

Hi, I'm looking for some information.

When a secured loan is sold to a DCA is the loan still regarded as secure, in the sense of a second charge on the property?

Or ... does the DCA simply acquire a loan balance at a knock down rate?

If the signed agreement is with the original lender, how can it be enforced if I never acknowledged or agreed to the loan being sold, or entered into an agreement with the company that since purchased it?

Thanks.

[MIKE770]

When you borrowed the money or opened the account you agreed to the terms. In the small print have been a clause that said that the lender can “assign his rights” to a third-party:-



all rights are transferred on property sale i.e. the agreement , to debt purchaser, if it sold (assigned) with a property charge on it goes with the sale, all agreements have within them rights to sell under sale of property act in your case the said Loan agreement.

b y the way a DCA does not buy loans only are appointed as a collection agency BUT a debt Buyer buys outstanding debt and becomes the owner of the same. they buy say 10 pence in the pound and hope to make full profit as to what you owe.

[pt2537]

Hi, I'm looking for some information.

When a secured loan is sold to a DCA is the loan still regarded as secure, in the sense of a second charge on the property?

Or ... does the DCA simply acquire a loan balance at a knock down rate?

If the signed agreement is with the original lender, how can it be enforced if I never acknowledged or agreed to the loan being sold, or entered into an agreement with the company that since purchased it?

Thanks.

As long as all the formalities have been adhered to , then the assignee is the legal owner of the legal charge and loan too