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Hi, I'm Confused.
Not really but I've got vague question-like items floating around my head and I need to clear it.
I enter into an Agreement with a licensed Lender... they give me £5000 of your English Pounds, and I agree to pay it back plus interest over a fixed period. This is a happy time - I have money and I buy things. At some point, I fall upon hard times; and I fail to make enough payments that they get seriously ****ed off and start hounding (as per the SOP).
I go silent and stop answering; or I disappear... and eventually the Lender decides that they must cut their losses.
WHAT LAW now applies? Where are they given the right to assign/sell a debt to someone else - someone I have no contractural relationship with? Presumably the same bit of Law gives the recipient the right to collect the debt, and to decide HOW it gets collected, too?
Does this Law protect me in ANY way? I mean, don't get me wrong; I agree that in the fictitious picture I've drawn, I'm not looking like too responsible a borrower and should be made to honour the agreement I made in the beginning - but surely MORALLY (and under "normal" contract Law, contracturally) I only owe money to the original lender... so what is my LEGAL liability to the new assignee? How much will the Law hold that I need to pay them? See, I don't think I should pay them a penny more than I had left to pay the OC - and there is a vague sense somewhere that I might get away with paying them only a little more than they paid for the debt in the first place.
I certainly don't see why (after all they bought a debt of £2500 for something like £500) I should pay them any collection fees in addition to the original balance; and I don't think that the figure passed to the assignee should be allowed to include any fees either.
What are your legal, moral and other views around this particular piece of the CCA? How could The Act be beefed up to make this part clearer and to continue its influence after the failure of an agreement?
Not really but I've got vague question-like items floating around my head and I need to clear it.
I enter into an Agreement with a licensed Lender... they give me £5000 of your English Pounds, and I agree to pay it back plus interest over a fixed period. This is a happy time - I have money and I buy things. At some point, I fall upon hard times; and I fail to make enough payments that they get seriously ****ed off and start hounding (as per the SOP).
I go silent and stop answering; or I disappear... and eventually the Lender decides that they must cut their losses.
WHAT LAW now applies? Where are they given the right to assign/sell a debt to someone else - someone I have no contractural relationship with? Presumably the same bit of Law gives the recipient the right to collect the debt, and to decide HOW it gets collected, too?
Does this Law protect me in ANY way? I mean, don't get me wrong; I agree that in the fictitious picture I've drawn, I'm not looking like too responsible a borrower and should be made to honour the agreement I made in the beginning - but surely MORALLY (and under "normal" contract Law, contracturally) I only owe money to the original lender... so what is my LEGAL liability to the new assignee? How much will the Law hold that I need to pay them? See, I don't think I should pay them a penny more than I had left to pay the OC - and there is a vague sense somewhere that I might get away with paying them only a little more than they paid for the debt in the first place.
I certainly don't see why (after all they bought a debt of £2500 for something like £500) I should pay them any collection fees in addition to the original balance; and I don't think that the figure passed to the assignee should be allowed to include any fees either.
What are your legal, moral and other views around this particular piece of the CCA? How could The Act be beefed up to make this part clearer and to continue its influence after the failure of an agreement?
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