Hi, currently 10 months into our IVA and recetly received a letter from MBNA stating that they have sold are debt onto a debt company, is this anything to worry about, i'm assuming they will only be receiving our IVA repayments.
This is quite common and nothing to worry about at all. The new company are the ones who will be receiving the IVA payments.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Never could work out why they do this, the debt company must be hoping that one day someone wins the lottery or manages to pay back the debt 100%, can't see how they make much of a profit.
I think they buy them at a very nominal amount which is less than they can expect to receive from the debtor.
OK, they may come unstuck if the IVA fails but other than that they will be quids in.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
They buy them at figures like 8 p in the pound, so a dividend of 30 makes them a profit over time. The main lender then writes of this acid debt from it's books and it's accounts appear far healthier.
It would be good if the debtor could be given first refusal when this happens ... alas, this isn't the case.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
That would be good if you could buy back your debts that way. My MBNA was sold on, and never received any more letters other than the original telling us it had been sold on.
