No prior notification from the original creditor(?)

[lindyhop]

Hi fellow Caggers

 

I'm not sure if others on here have any thoughts into this, but I'm hoping to get some help to clarify the situation on something i have come across recently, having read this as part of the lending code.

 

232. Customers should be advised BEFORE their debt is passed or sold to a third party by a subscriber. The intended outcome of this provision is that a customer SHOULD NOT receive any contact from the party to whom the debt has been

passed or sold without having received prior notification from the subscriber of the transfer.

 

what if the OC (subscriber) has NOT given prior notification to the debtor of the sale of the debt to a third party?

 

if a customer received a letter from a DCA stating 'i am now the owner of this debt' and in the same envelope was a supposed NOA from an OC, would this count as the OC having met 232?

 

thanks

 

 

 

Thanks

[fkofilee]

Sounds like Lowell.. .They do this with 2 letters in the same envelope on another companies letter head...

I would say yes which ever way you look at this, however I dont agree with how they do it.

[Stigman]

if a customer received a letter from a DCA stating 'i am now the owner of this debt' and in the same envelope was a supposed NOA from an OC, would this count as the OC having met 232?

 

Possibly but in reality it will be irrelevant, the debtor would have been well aware of the status of the account through their own actions (non-payment through illness, redundancy, accident, can't be bothered), being sent default notice(s), letters reminding overdue payment/balance etc. and knowing full well that the account would go to debt collection.

 

The DCA prints both letters with full permission to print with the OC's letterhead, this condition would have been included in the debt purchase sale.

 

Stigman

[lindyhop]

Thank you both for the prompt response clarification.

 

much appreciated

[fkofilee]

Thank you both for the prompt response clarification.

 

much appreciated

 

No Problemo.

[SabreSheep]

lending code is also volontary

 

for more teeth, bcobs and ccobs are your friend