Debt Assignment

I'm starting this for Sunshine 111 who has been struggling to start a thread :-))

Hi

apart from saying Hi, and how grateful i am that this site is available, i need to start a thread in CCA.

when is a CC debt a bought debt?

Question

if a DCA states that a debts has been referred to them, does that mean it is for collection only, or have they brought the debt?

does the OC ever buy the debt back if they have sold it? can they?


thanks

[FlamingParrot]

Re: Debt Assignment

Usually when a DCA says it's been referred to them, it is just for collection, when a debt has been sold you should receive a Notice of Assignment (NoA). This post explains all about debt purchase and assignment --> http://www.legalbeagles.info/forums/...0627#post70627

[labman]

Re: Debt Assignment

Thanks FP. Sunshine - there is one piece of information missing from that link which can be very relevant at the moment.

Where an Absolute Assignment has taken place and you are reclaiming ppi from the original creditor (who no longer own the debt), they can and do buy it back purely to take the amount of your ppi refund from the balance owing, then sell it straight back with a lower balance. It appears to be a legal loophole, but stops a lot of people who are expecting a ppi payment from getting it.

[FlamingParrot]

Re: Debt Assignment

Thanks FP. Sunshine - there is one piece of information missing from that link which can be very relevant at the moment.

Where an Absolute Assignment has taken place and you are reclaiming ppi from the original creditor (who no longer own the debt), they can and do buy it back purely to take the amount of your ppi refund from the balance owing, then sell it straight back with a lower balance. It appears to be a legal loophole, but stops a lot of people who are expecting a ppi payment from getting it.

A most interesting point, which contradicts what I'd previously hear in this respect, that you could reclaim from the OC once the debt had been sold and get your PPI refunded to you rather than the debt purchaser. I'm sure you're familiar with that argument, I was looking into doing a reclaim like that myself, although it wouldn't be very much.

[labman]

Re: Debt Assignment

It has been known for it to go to 'you,' but more often than not it is used to offset the debt. There's a big chunk about this in Brummies ppi thread.