If a Debt Is Sold to Another UK Company, Do I Have to Pay?
Your debt might be . If this occurs, the firm that acquired your loan will become the one you owe the money to. Your debt remains, and you must either settle it or find a way to manage it.
Rather than immediately paying off a debt that you suspect is fraudulent, DoNotPay may provide you with many choices for challenging it.
Why Can You Be Contacted to Pay Debt Sold to Another Company?
When a debtor fails to make timely payments to a creditor, the creditor may hire a third party to pursue payment on their behalf. An organization tasked with collecting overdue payments may contact you for the reasons below.
- Your debtor has hired a debt collection firm to pursue payment from you.
- Your original creditor sold the debt to a collection agency.
In the first situation, the debt collection firm is only assisting the original creditor in recovering what is rightfully theirs. When dealing with a debt collection agency, it is essential to remember that in the second scenario, you no longer have a credit arrangement with the original creditor. So now rather than the firm from whom you borrowed the funds.
Can It Be a Scam Between the Creditors and the Company?
In rare cases, a creditor may instruct a debt collection agency to pursue a debt without selling it to the agency. It implies that your debt is still legally owed to the original creditor, but the collection agency is pursuing it on their behalf in exchange for a fee or a commission.
Therefore, you may get a collection call from a different firm if you owe money to a creditor that hasn't yet been sold. It leads many debtors astray, as they incorrectly assume the letters are scams, yet they are not.
However, these might also be scams, so it's best to be cautious.
What Can Happen if You Don't Pay Debt to the Collection Company?
Debt collectors might contact you by mail and telephone to have you pay off your debt. In the event of nonresponse, legal action may be taken by the debt collecting agency. Doing so will result in a County Court Judgement (CCJ) being issued against you; failure to pay the CCJ will show up on your credit report for at least six years.
For the duration of the six years after the date of the CCJ, every creditor that pulls your credit report will find the CCJ listed there. Given your credit history, they may be less willing to lend to you or may charge you a higher interest rate if they do. Even if you're not trying to get credit, a CCJ might still hurt you if you rent an apartment or try to get a specific job, both of which conduct credit checks.
How Do I Send Money to the Debt Collector If a Creditor Sells My Debt to Another Company?
If a collection agency keeps calling you and you owe money to a particular creditor, you should make every effort to settle the debt. Here's what to do if you owe money to a creditor who has sold your debt to another company:
- Avoid ignoring your financial obligations.
- Make an appointment with the organization
- Have them stop calling you or sending letters and listen to you.
- Come to an agreement on a payment plan.
- Get started on your debt payments as promised.
Can You Use DoNotPay to Help You if Your Debt Is Sold to Another Company?
DoNotPay provides advice in the form of questions to assist you in choosing the best course of action to follow. They will assist you if you decide to make a complaint with the government against the debt collecting firm.
Below is how DoNotPay can help you.
- Search "debt collection" on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.
Is DoNotPay a Tool That Can Assist With Making Payments to Other Firms?
DoNotPay is a time-saving and stress-reducing tool that facilitates the timely payment of debt to third parties. Below is a list of some of the firms we can help you with:
|Moorcroft Debt Recovery||Advantis Debt Collection|
|Marston Group Holdings||Lowell Financial|
|DWP Debt Management||Cabot Financial Debt Collectors|
|Amigo Loans Refund||Provident Loans Refund|
What Additional Services Can Donotpay Provide You?
DoNotPay may assist you in figuring out whether or not you still owe money after a debt sale has taken place, and if you still ask yourself, ""
As a bonus, DoNotPay can help you:
- Make a bill payment online
- Litigation at the small claims court
- Cancel any service or subscription
- Find unclaimed money
- Increase the credit limits
- Get free trials
- Make a formal complaint