www.iva.co.uk

Hi All

Just a query on how the selling off of debt works regarding three MBNA credit cards I had , all IVA creditors .Got a letter from a company called Eversheds , saying that these three accounts have been sold and transferred to MAX Recovery Ltd .

So what happens to the thousands of pounds of debt I owe MBNA .. and how much will I be paying back to MAX ..and why do they want to sell the debt on ! I hope someone can explain why companies do this , and how it benefits them ?

Thanks Guys!

Hi bryn.

You will be paying back exactly the same dividend back to Max Recovery as you would have to MBNA.

Not sure exactly why they do it though as they sell on for a lot less than the amount owed.

I understand a bit more now , does seem strange they just sell it on at thousands less than they are owed . Maybe its all insured or a tax break !

Hi Bryn.
Many of these large institutions do not find it commercially viable to monitor payments into IVAs. Max Recovery and others buy substantial levels of debt which allows the banks instant cash and removes the requirement for them to have an insolvency department. Max Recovery is specifically set up to collect insolvent debts and can do it much more profitably than the banks.

Debt sales are growing rapidly at the moment and the price paid reflects the chance of recovery.

Thankyou Michael ...becomes somewhat clearer now . Was wondering if we go for a variation due to the wages differing , would Max be as agreeable as MBNA were when the IVA was passed ?

Thanks Michael ..

Your chance of a variation being accepted are much greater now that Max own the debt as provided the return is greater than bankruptcy and it still remains best offer, they tend to accept.

Good luck.

How do you know if your debts have been sold on ?? been in IVA for three and half years never heard form anybody xx

Usually you would be contacted by the company that has bought the debt. They tell you that theres no need to contact them and they will just deal with your IP.

Hi Kabby.It is possible that your debts have not been sold on as Max Recovery will send you a letter for information purposes only. You could call your case manager who will have the up to date list and can confirm if any or all have been sold.It will not matter to you anyway as being over three years into the IVA there must have been little or no major issues.

Hope all stays well for the next year and a half.

I was sent a letter by Eversheds on behalf of Max Recovery when they bought a couple of my debts.

They bought my Barclaycard debt and wrote and told me.