Can a credit card debt be sold if the claim was stayed in court?

[skills999]

I have a disputed credit card debt with MBNA that after about 18 months of letter writing, I asked for and received an incomplete copy of the credit agreement.

 

 

I disputed the claim and they sent me a county court claim.

 

I mounted a defence and the claim was stayed in November 2010.

 

I got a letter today (July 2012) from MBNA saying they have sold the debt on.

 

Can a stayed debt be sold?

I was under the impression that nothing could be done with a debt/claim until the stay was lifted.

 

I have not yet had any correspondence from the buyers of the debt but would like to know how to respond when I do.

 

I would appreciate any help.

[BankFodder]

They can sell the debt - but it is clearly in dispute and they shouldn't be taking any action.

[marmaris30]

A creditor can sell its 'asset' with all rights attached to whoever it pleases, including the right to continue any related legal action and enforce as normal, but this would still be subject to all the requirements and regulations that applied to the debt when taken out, including the stay on your particular case.

 

I'm not sure but the new owner would have to apply to transfer the action to their name, and this might technically require permission from the Judge, which I imagine would be granted if the transfer is otherwise in order.

 

It's not directly relevant but it might be interesting to know why the stay was granted, if it's not too personal - is it awaiting a test case or something?

[skills999]

Hi BankFodder,

When I do here from the buyers,

I assume I should reply as I would if the debt was just in dispute and report them to the OFT and Trading Standards for breach of OFT consumer protection 2008 and debt collection guidelines 2003 (2006)?

[skills999]

A creditor can sell its 'asset' with all rights attached to whoever it pleases, including the right to continue any related legal action and enforce as normal, but this would still be subject to all the requirements and regulations that applied to the debt when taken out, including the stay on your particular case.

 

I'm not sure but the new owner would have to apply to transfer the action to their name, and this might technically require permission from the Judge, which I imagine would be granted if the transfer is otherwise in order.

 

It's not directly relevant but it might be interesting to know why the stay was granted, if it's not too personal - is it awaiting a test case or something?

 

Hi Mamaris30,

No Its not to personal, Business went into liquidation, no house or assets, very small income and my business insolvency guy recommended I should go personally bankrupt as I probably owe 60K+ so I have nothing to lose.

My court defence was that the credit agreement was incomplete so not properly executed.

The follow up letter from MBNA's solicitor told me that the agreement was ok and would proceed to court in 7 days.

My reply was "bring it on"! You can waste as much money as you like in court as I will turn up and present a case and even if I lose you still will not get a penny as I will just go bankrupt.

[citizenB]

http://www.consumeractiongroup.co.uk/forum/showthread.php?356147-MBNA-and-sale-of-debt

 

They are selling debts already that are subject to Court judgments and charging orders as well. Have a read of the thread linked above.

 

I think the new owner will have to apply to the court to change the name of claimant - solicitor etc.

[skills999]

Thank you citizenB, the link is very informative.