Can someone tell me why the creditors are allowed to sell on the debt to recovery companies while we are in a iva...I was told they are not allowed to do this but they seem to be getting away with it, most of my debt has now been sold on..I believe this causes problems with the credit agreements I signed as these are signed for credit with the original companies not the people they sold the debt too....?
Hi. There is no reason why they cannot sell on the debt ... indeed most toxic debts are sold on -- it's normal commercial activity for lenders and makes no difference to us as the new owners are bound by the IVA too.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Creditors sell their debt for a fraction of what was outstanding. That way, they can 'close off' the bad debt from their books. The new creditor who purchases the debt will usually get much more back for it in the long run. This is normal standard practice.
Who told you that they were not allowed to sell the debts on, and why shouldn't they? This has no effect on you, and in fact the companies that buy the debts are far more commercial than the lenders themselves when it comes to needing to vary terms etc.
Are you trying to claim mis-sold PPI back and is this causing a problem?
I agree with Melanie, the companies buying the debt will have far more flexibility over the debt than the original creditor.
I would also expect that as they bought the debt for a fraction of its face value then they would be more inclined to accept a F&F as it would represent a quick trouble free profit for them.
