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Halifax pass debt to Westcott without Notifying account holder


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I am writing this thread on behalf of a friend who has been receiving text messages and now phone calls from Westcott.

 

My friend has a debt with the Halifax and as they are currently out of work have an agreement in place to pay £5.00 per month to the Halifax. She is now being pursued by Westcott for the same debt and has not received anything in writing from the Halifax to inform her that the debt has been passed on. Is this correct practice? and she is also some what concerned that they now have all her details.

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Your friend should ignore Wescot and continue dealing with the Halifax. Suggest that she writes to Halifax, asking what is going on and whether the repayment of £5 per month is still in place.

 

What is for certain. Either Halifax and/or Wescot should have written to her to confirm the position as a 'notice of assignment', if the debt had been passed on. She should not be expected to deal with someone who just texts and phones her.

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Hi unclebulgaria, and thank you for your reply. She has not received anything in writing from either party, and personally I would have thought that any such notification should come from the original lender, how would one know that the person calling on behalf of Westcott is not just a [EDIT] trying to glean sensitive information, as there has been no notice from Halifax to my friend saying they are terminating their agreement with her and handing it over to anyone, yet. She has been warned that this may happen and when she asked why, if she is keeping to the agreed payment of £5.00 per month, would the debt be passed on, the Halifax informed her that is just standard practice?, it looks like it has been passed to two DCA's so far, one dealing with the other.

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And how about if Westcott have asked you to set up a DD to pay them when you have not been informed by Halifax that Westcott are to be paid instead of the Halifax?. This would look like Westcott have purchased the debt and that is why

they are requesting payment to be made to themselves, Halifax have also stopped sending the regular monthly statement of account that includes the bank giro, so now my friend has no means of paying other than setting up a DD or standing order.

 

I have suggested that when the time comes to set up a standing order as a DD gives a bit more control to the creditor and a standing order is under your control. The problem there would be that I am sure there is a fee for a standing order, and no

fee for a DD to be set up, so as my friend is unemployed, any additional outgoings are difficult to cater for, she does not posses a cheque book so cannot pay by cheque each month.

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If your friend is unemployed it is a payment of £1 a month, or go down the CCA route and don't make any payment when they default. That is what a court would accpet if you are unemployed and this unsecured low priority loan went to court.

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The original or current creditor should inform you they are passing the account on to some one else and ensure full details are passed on (which most don't)

The OFT Debt collection Guidelines makes it quite clear what action is required

Section 3.7 of the updated guidelines deals with this

 

Advice your friend to answer one of the calls but then refuse to give out any information to a unsolicited call given that the information could be used for identity theft.

If they want to contact your friend they will need to write to them.

Westcot are one of the easier ones to deal with.

Once thy have written to your friend reply with the telephone harrasment letter

Edited by Loser4u
Guidelines changed
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The original or current creditor should inform you they are passing the account on to some one else and ensure full details are passed on (which most don't)

The OFT Debt collection Guidelines makes it quite clear what action is required

Section 3.7 of the updated guidelines deals with this

 

It's the job of the new creditor. See this:

 

http://www.legislation.gov.uk/ukpga/1974/39/section/82A

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Hi guys

 

 

Seq is correct. The full amplification of the bit of the CCA quoted is:

 

43 Regulation 36 of the EU Directive Regulations.

16. ASSIGNMENT OF RIGHTS

here any rights of a creditor under a consumer credit agreement (for example the right to be repaid the money) are sold or transferred to a third party, notice of that assignment must be given to the borrower as soon as reasonably possible, except in the circumstances described below. This requirement applies to all regulated consumer credit agreements other than agreements secured on land. This requirement is in new section 82A of the CCA43.

 

t is the responsibility of the assignee (the creditor acquiring the rights) to ensure that notice is given. However, he does not have to give notice himself, but can agree with the assignor (the creditor assigning the rights) that the assignor will give notice instead, depending on what is more sensible in the circumstances. It is important, however, that notice is given as soon as reasonably possible and in a way that is clearly understandable by the borrower.

 

otice does not have to be given where arrangements for servicing the credit are unchanged as far as the borrower is concerned. For example, if Creditor A sells his rights under a credit agreement to Creditor B but Creditor A still collects the borrower’s repayments in the same way and is the only point of contact for the borrower on matters regarding the agreement, notice does not have to be given.

 

here notice has not been given, and arrangements for servicing the credit do subsequently change, the borrower must be informed of the assignment on or before the date that change happens. Again, this must be readily comprehensible to the borrower.

 

The definition of “creditor” in section 189 of the CCA applies to this new requirement on assignment of rights. This means that when an assignee purchases debts (or otherwise acquires rights under a credit agreement) it also acquires certain obligations to the borrower including the duty to comply with CCA requirements (such as the rules on statements and notices and other post-contractual information). The assignee becomes the creditor under the agreement. This ensures that essential consumer protections under the CCA cannot be circumvented by assigning the debt to a third party.

 

71

 

I find that sending the last para to anyone demanding money is quite effective; an example from yesterday is; “ Please note the above account is closed with Credit Solutions Ltd…”. And all I did was precede the last para with,

 

‘I confess that I am at times confused as to the delineation of responsibilities between you and your client which appears to me as a chimera; I am guided in this confusion by EU law:’

 

 

 

 

x

 

 

 

v

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My account was passed to BLS from LTSB (owners of Halifax). In reply to my complaint, there response was they do not inform the OC the account is being passed to another organisation!!!. Just wrote back saying this is bizarre and suggesting that if I pass it to someone else is that OK?? - my account not been sold.

 

What fun we have.

 

Intend

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Thanks guys for all your help and advice. We have sent off for an SAR a few weeks ago and will see what comes back. But I have to say that I am always frustrated when a debt is sold on, and we know that debts are sold well below the

actual debt value, only for the new creditor to come after the debtor heavy handed for the whole amount of the debt, there should be something done about such practice as loan sharks add on huge apr's to their monies lent, and they

can be investigated, so how come a debt collection agency can purchase a debt for 10% or so of the actual value of the debt and get away with charging the whole sum?. I understand the theory behind it though, as a credit manager with

30 years experience, I still get frustrated at how such practices go on. I started my own credit control outsourcing business a few years ago, and have sat in front of a few DCA'S that would like to offer my companies services on a white label

basis, and I sit there and they start off with how they follow the guidelines etc, and then after about half an hour their true colours start to show, and then they say things like "we make many phone calls a day to an individual, we threaten them

with garnishee orders, with charges on their properties" etc etc. I say to them, so if they really have not got the money do you not have a conscience about what you are doing?, it appears not. I have known people to make an offer to their creditor

of above the 20% that they may sell it on for, only for the creditor to refuse the offer, the only reason is that they are being b minded, as they really do not care about the individual at all and do not mind what happens even if they do not sell it on

for as much as was offered by the debtor, it's a power thing for sure.

 

As I said, I understand the theory behind the actual asking for the full amount as that is really bottom line what the debtor owes, but I do think that when circumstances can be proven, that one is going through a period of hardship, that maybe the

creditor should look at things in a more sympathetic way than they seem to, they seem to tar every one with the same brush, one size fits all attitude, and personally, I could not pair up with such an entity

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sequenci - I know BLS is owned by LTSB, but a debtor would be foolish to enter into a dialogue with any third party without clear instructions from the OC. In my case LTSB clearly admitted it was not their standard procedure to do so. Just means we have more ammo to fire should the case go to court.

 

gem - OC merely sell it for what they can, rarely lose as claim tax on the loss. No different to you or I selling one of our assets. As you state the key to remember is they bought it for a fraction so use that as the basis for repayments.

 

Intend

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