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basa · 21-11-2009, 23:35

OK assignment of credit debt is VERY complex.

There are two types of assignment: equitable and absolute (legal).

An equitable assignment really only confers on a debt collector the right to pursue the debt (and keep the proceeds). The original creditor still retains the rights and duties spelled out in the credit agreement and is the only one who can take legal action to pursue it.

Absolute assignment transfers the debt and with it the rights and duties of the original contract.

If an absolute assignee the 'new' creditor must provide to the debtor upon demand (+ a fee of £1) a true copy of the original credit agreement. If the new 'creditor' (the debt collection agency) cannot provide this there is no way the debt can be enforced in court. You will get a default however as the law has yet to decide the legality of this action.

Even with absolute assignment, a DCA can only take legal action with permission of the court as DCAs cannot be creditors.

You should not pay another penny to this debt until the DCA has provided a copy of the original credit agreement and the true deed of absolute assignment.

In the current state as already pointed out they will take your money and sell on the remaining debt (or continue to pursue you for it).

You should write to the DCA requesting pursuant to the Consumer Credit Act 1974 section 78(1) a true copy of your credit agreement for the account and enclose a £1 PO. In the same letter demand a copy of the deed of assignment of the debt from O2.

In the letter explain that you do not acknowledge any debt to the DCA until said documents are received.

They have 12 days (+2 days postage) to comply or else be in default of the Act.

Whilst it is probably true (as has been suggested) that O2 wouldn't have sold this debt if they thought they could legally collect on it, often debts are sold (usually for around 10%) to offset against tax and to avoid the cost of collection and the possible bad PR.

Some say ALL the major banks sell on rather than pursue bad debts nowadays.

21-11-2009, 23:35	#31
basa Duh ! Join Date: Jun 2003 Location: S Manchester Age: 63 Posts: 1,766	Re: Debt Collection Agency OK assignment of credit debt is VERY complex. There are two types of assignment: equitable and absolute (legal). An equitable assignment really only confers on a debt collector the right to pursue the debt (and keep the proceeds). The original creditor still retains the rights and duties spelled out in the credit agreement and is the only one who can take legal action to pursue it. Absolute assignment transfers the debt and with it the rights and duties of the original contract. If an absolute assignee the 'new' creditor must provide to the debtor upon demand (+ a fee of £1) a true copy of the original credit agreement. If the new 'creditor' (the debt collection agency) cannot provide this there is no way the debt can be enforced in court. You will get a default however as the law has yet to decide the legality of this action. Even with absolute assignment, a DCA can only take legal action with permission of the court as DCAs cannot be creditors. You should not pay another penny to this debt until the DCA has provided a copy of the original credit agreement and the true deed of absolute assignment. In the current state as already pointed out they will take your money and sell on the remaining debt (or continue to pursue you for it). You should write to the DCA requesting pursuant to the Consumer Credit Act 1974 section 78(1) a true copy of your credit agreement for the account and enclose a £1 PO. In the same letter demand a copy of the deed of assignment of the debt from O2. In the letter explain that you do not acknowledge any debt to the DCA until said documents are received. They have 12 days (+2 days postage) to comply or else be in default of the Act. Whilst it is probably true (as has been suggested) that O2 wouldn't have sold this debt if they thought they could legally collect on it, often debts are sold (usually for around 10%) to offset against tax and to avoid the cost of collection and the possible bad PR. Some say ALL the major banks sell on rather than pursue bad debts nowadays. Last edited by basa; 21-11-2009 at 23:52.