Selling on a secured loan

[Sparechange]

Can anyone answer the question as to why a company would sell on a secured loan to DVA rather than seek a possession order? And indeed is it even possible to transfer a security in this way? Thank you

[Sam101]

A secured loan is an asset and that can be sold provided there are no restrictions in the original agreement to prevent a sale. The original lender may not wish to seek possession and choose to sell on to others who may be happy with that arrangement.

[atticus]

Isn't the likelihood that this was part ofa packaged sale of a larger loan book?

[Sparechange]

Isn't the likelihood that this was part ofa packaged sale of a larger loan book?

Yes it was. Around 9 years ago and not acknowledged since. Would it be Statute barred? It was also a 1/3 charge so don't know how that impacts the other lenders/mortgages either.

[atticus]

A secured loan is unlikely to be statute-barred, at least in relation to action to enforce the security.

The priority of secured debts is determined by the order in which the charges are registered.

What do you mean by "a 1/3 charge"? Is this a third charge, i.e. one ranking 3rd in priority?

[Sparechange]

A secured loan is unlikely to be statute-barred, at least in relation to action to enforce the security.

The priority of secured debts is determined by the order in which the charges are registered.

What do you mean by "a 1/3 charge"? Is this a third charge, i.e. one ranking 3rd in priority?

Yes it is effectively a 3rd charge. The other 2 are the current mortgage and a secured loan with the same mortgage company.
We were forced to take out this 3rd charge to consolidate the 2 other unsecured loans as the lender would not agree to an affordable repayment plan.
Also the DCA has issued another Default Notice but this one defaulted over 15 years ago.

[Sparechange]

Further this current DCA has made numerous threats in the past. Including selling it on again/Field agents visits etc. They harass us monthly. I never respond but obviously this may be time to find out exactly what the situation is.
Do the words "we may transfer our rights" mean this is definitely the case that a secured loan can be sold on? I have no idea whether the DCA even have an original copy. I was thinking of putting in a request for this but obviously do not want to acknowledge anything unnecessarily at this stage. However, I am wondering if waiting for court action is wise at this point as presumably this is not just a CCJ I'm facing. Then there is the unfair selling issue. Over half of the loan is interest and charges. Is that something I should tackle at the same time? Should I seek information from our mortgage company as I don't even know if they were consulted as who would take on a 3rd charge when they are owed the majority?

[Sparechange]

The Letter is titled "Default Notice". Containing all the legal threats and dates of action if settlement not received etc. But I thought they weren't allowed to repeatedly renew a Default Notice for the same debt?.

[atticus]

You now say that the default notice was 15 years ago - this debt may be statute barred under s15 (possession action) and s 20 (claim for payment of debt) Limitation Act 1980.

[Sparechange]

You now say that the default notice was 15 years ago - this debt may be statute barred under s15 (possession action) and s 20 (claim for payment of debt) Limitation Act 1980.

Oh wow yes.. It defaulted when it was with the original lender. That date counts then, not the ones the DCA's impose? How would I obtain a copy of the original Default notice? Should I approach the original lender. Thank you so much for your help incidentally. I feel I'm finally getting somewhere.

[atticus]

It's interesting where a random question about selling a secured loan can lead ...

If you can't find the original default notice, how are you going to prove it existed? You may ask the original lender, but will be relying on them to have a copy or record of it.

And - best to check - when was the security given?

[Sparechange]

And - best to check - when was the security given?[/QUOTE]

Security given July 2005. That I do know.

[Sparechange]

I'll look through my paperwork to see if I kept it. I may have the DCA's previous Default notices.. I think I have screenshots of their entries on my credit file over the years too showing dates and status Defaulted. I know one credit agency shows no activity for years but is that proof? Plus this account is not shown on all CRAgencies either.

[Sparechange]

My thinking is to write to the DCA asking them to confirm they have never issued a Default Notice regarding this account in the past. Also state I believe it is Statute-Barred and ask them for an SAR. Do you think that would be best?

[atticus]

The questions you are now asking are best left for others who may know more about these things. Perhaps echat11 ?