Hi Colski.

I thought that a formal default notice could only be issued once on an account.

It's often done as a precursor to selling a debt (it has to be formally defaulted before you sell it).

Are you sure these entries are all "default notices" rather than the monthly account status being marked as being "default".

Himmmm.... will double check that one TDA.

When I looked on Noodle originally the new companies taking on the debt had listed the same values (and in one case the combined values) of the debts and entered the first monthly information as a D referring to a default.

Thinking about this one now (perhaps over thinking it now) do these new creditors who own the old debt now have the right to refuse the amounts deemed acceptable for repayment which the originally companies had agreed to?

I also fail to understand what benefit these debt companies have in taking on debt which is in a PTD as they stand to make a lost on the money from the very start.

Hi colski.

The monthly information "default" is different to a default notice. I'm not sure that you can do much about that monthly reporting.

The debt purchaser is bound by your trust deed just like the original creditor was.

This type of debt purchase often takes place at very low values, pennies for every pound that you owed. A dividend from a trust deed may well be very profitable for them.

ahhh. Thanks for the the info TDA

We're certainly finding more and more debts being sold on, although as you say, it makes no difference to the trust deed as you are still protected.

It will be interesting to see if the number of debts sold on decreases due to the new regs, where there are far less opportunities for the dividend agreed at the start, to be reduced.

Mark

Hi Mark.

I'd have thought the same logic to sell debts would remain (cash now versus promise later) but the diminished likelihood of a reduced dividend might increase the price at which such debts are sold.

I believe it's a numbers game, a bunch of accounts are bought, knowing some will not have a great ( if any) result!
The upside is that some will and asTDA says,the outlay tends to be very low, enough money is made on aggregate to make it worthwhile.

It's certainly a numbers game RBSB.

Buy the right types of debt and implement a successful collections strategy and you win.

Get either wrong and you could be in big trouble.

I wonder if the buyer always knows the status of the account?

In the numbers game, how many people who are insolvent, working to a very fixed expenditure, are likely to respond to letters or calls by agreeing to a reduced balance if paid within 30 days.

I have ignored most but called some to ask them to note on their files the unlikelihood of payment.

Thinking as I write this, if I ever started buying lottery tickets, there would be a possible return until the 36 month payment period is over so its not so absolute perhaps.

They're purchased in packages RBSB.

I'm sure the purchasers conduct due diligence in advance of making such a purchase so they don't pay over the odds for what they're getting.

From their previous experience I'm sure they'll know the likely return from debts that are already subject to various types of insolvency proceedings.

I'm sure you're right TDA.