Never Pay a Debt Purchaser Until You Have Checked If You Can Write Off the Debt
Debt purchase is a huge industry.
Did you know that credit card companies have sold £18 billion of debt to debt purchasers in the last three years alone? With a debt purchaser paying as little as 6p/£, there are huge returns to be made if they can get their collection methods right.
I have been involved in the debt industry all my working life and I know what they will say to get you to pay, but I also know what you need to be aware of to make sure you have an obligation to pay.
Firstly make sure that they have served you with a valid notice of assignment of the debt.
Without that they have no right to demand payment from you.
Secondly, always get a copy of the original agreement that you signed with your lender.
This is key to being able to resist paying.
If the loan or credit was below £25,000 it would be governed by the Consumer Credit Act 1974.
That act states that in order for a company to enforce a debt, i.
e make you pay it has to have an agreement signed by both parties, containing all the prescribed terms, such as the amount of credit and the rate of interest.
There are two problems faced by a debt purchaser here:- A) The "agreement" usually signed was often just an application form with no prescribed terms and so would be unenforceable, and B) Whilst the debt may have been bought by the debt purchaser it is unlikely that any agreement will have been supplied and so again as they cannot provide it, the debt is unenforceable.
It is crucial to take steps to get this agreement, and this is done by filing a Subject Access Request and paying a £10 fee.
As with anything financial, if you are unsure of what you are doing take professional advice.
Did you know that credit card companies have sold £18 billion of debt to debt purchasers in the last three years alone? With a debt purchaser paying as little as 6p/£, there are huge returns to be made if they can get their collection methods right.
I have been involved in the debt industry all my working life and I know what they will say to get you to pay, but I also know what you need to be aware of to make sure you have an obligation to pay.
Firstly make sure that they have served you with a valid notice of assignment of the debt.
Without that they have no right to demand payment from you.
Secondly, always get a copy of the original agreement that you signed with your lender.
This is key to being able to resist paying.
If the loan or credit was below £25,000 it would be governed by the Consumer Credit Act 1974.
That act states that in order for a company to enforce a debt, i.
e make you pay it has to have an agreement signed by both parties, containing all the prescribed terms, such as the amount of credit and the rate of interest.
There are two problems faced by a debt purchaser here:- A) The "agreement" usually signed was often just an application form with no prescribed terms and so would be unenforceable, and B) Whilst the debt may have been bought by the debt purchaser it is unlikely that any agreement will have been supplied and so again as they cannot provide it, the debt is unenforceable.
It is crucial to take steps to get this agreement, and this is done by filing a Subject Access Request and paying a £10 fee.
As with anything financial, if you are unsure of what you are doing take professional advice.