It’s recognised that banks and the like can sell on debts owed to them by individuals or organisations. However, what seems unclear is on what basis this is legally obligating so far as the borrower is concerned. When a debtor defaults on a loan the lender will serve a default notice in prescribed form and duly terminate the contract on account of non-compliance with the terms on the part of the borrower. It’s that original contract between borrower and original lender that would typically include a clause requiring acceptance by the borrower of the sale of the debt and consequent transfer of liability. Therefore if that original contract is terminated then although the loan liability will remain it seems that the agreement between borrower and lender to allow loan ownership transfer will no longer apply, pending a new contract. As I understand it, the common law principle of privity holds that any contract between two parties (here the original lender and a subsequent buyer of the debt) cannot impose obligations on a third party (here the borrower) not a party to the (sale) contract itself. It follows that the purchaser of a debt can only assert repayment or other authority over the lender by persuading that lender to agree that authority, that is to establish a new contract with that purchaser. This is why, it seems, such companies claim that the debt has been sold to them and encourage borrowers to agree with the transfer of terms, offering inducements such as there being no change to the terms. However, unless and until that is done it seems that the borrower is entitled to continue whatever agreement was reached after default with the original lender, perhaps continuing to pay the original lender rather than the purchaser on such terms as then agreed. Note that this isn’t about the original lender appointing a third party as an agent nor about the validity of serving a notice of debt assignment but specifically on the question of whether in these circumstances outlined the consent of the borrower is needed in order to transfer the original creditor's rights and responsibilities in respect of the debt insofar as that affects the borrower directly. Views? TIA for comments.

I was wondering if anyone may have any thoughts on this email i have just received from Payday express. At the moment I am Paying them £1 per month. payment already assigned for 1st March. thanks for looking

can i assign an overage clause to a third party?

obtained 2 money judgments last year and have started enforcement action. judgment debtor has now issued proceedings against me for sums that have already been decided in court. this has now delayed order for sale for another three months. judgment debtor now has an unless order to file a further statement of case and set out full particulars of the claim. what if they are still identical to what has already been dealt with?

help, this may be ridicious but ....... before approaching a solicitor and being laughed out of the UK can help be offered with this query. would it be possible for me to assign in some way a part of my mortgage title to my adult daughter without any money changing hands so that we then become joint owners? would my mortgage company have to agree?