Selling of Debt

Debt Selling

Did you know that creditors sell on debts to other companies? It is standard practice for a creditor that has a customer in financial difficulties to sell the balance outstanding to another company (a debt collecting company) for a few pence in the pound. This amount can be as low as 2p in the pound. A £1000 debt could be sold for as little as £20. The customer is then dealing with a debt collector who may come knocking on the door for payment. Some have been known to make a lot of fuss and noise to alert the neighbours so that they will see that someone is in financial difficulties. The customer is often in a situation not of his/her making and added to the stress of the situation is being pressured to pay up.

If an initial payment of say £100 is made to the debt collector the debt collection company has already made four times the cost to it and that is just the start.

Being in debt appears to be a one sided problem.

You may be saying “I am OK, I pay my way.” That is excellent news of course: however that is now, today. What has tomorrow got in store for you?

Debt Write Off

What you may find even more interesting is that many debts are not legally enforceable because the lender has not complied with its obligations under the various laws. Lenders are being challenged and debts are being written off. Why? Because the Consumer Protection Act is in place to Protect YOU the consumer and the lenders MUST comply with the law. If a lender does not comply with the law it is in the wrong not you.

Keith Turner (leading solicitor in the Walker case) estimates that over 80% of these agreements are unenforceable due to breaches of the terms. Keith says that breaches can be either 'Prescribed Terms' or 'Other Terms'. Having used the specialist software 'Checker' Keith reports that breaches of these terms occurred in 83% of cases (based on over 7,500 claims). The judge in the Walker case, a renowned mathematician, looked at the figures carefully and confirmed these figures. This information is freely available on 'you tube'.

This area of debt is known as debt write off and is regulated by the Ministry of Justice. The claims management company that we are an agent of is licensed by the Ministry of Justice.

Debt Write Off Advantages include:

Unlike some other methods of debt write off once accepted on the Fast Track service you are GUARANTEED to be clear of that debt (if the claims management company is in error and the debt is enforceable in a court of law it will invoke its insurance policy which will clear the debt for you. Hence the guarantee)
Underwriting starts as soon as payment has cleared
For a relatively small up-front fee in comparison to your debt level you stand to save Thousands and possibly Tens of Thousands of pounds
You know up front what it will cost and how much you stand to save
A credit card being used for this can be used to pay the fee if there is enough credit available on the account
Ideal for clients (including those in debt management plans) who have a lump sum available and don't want to use this for Full and Final Settlement
You can have some of your debts audited now and more later if you wish (be aware that the higher administration fee will be levied for the first debt and the lower administration fee for any others each time you use the fast track service)
If the debt is considered to be enforceable and the claims management company do not accept your case the fees paid for that debt are refunded in full

Debt Write Off Disadvantages include:

You must stop using any credit card that is accepted for the service (be sure to open a bank account away from the bank you have any credit cards with in case the lender freezes your bank account)
Creditors may initially try to contact you to discuss the agreement (you contact the claims management company and they will advise you)
Balance of debts must be more than the total fees to make this worthwhile
For the Debt Audit service you must maintain payment to each loan