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Topic starter
27/06/2011 3:02 pm
First Thanks for the advice of my other questions. I'm in the process of dealing this that With a DAS/Debt Adviser with NLC.
For part of my defense/counter claim against link. I asked GE Money to supply all info they held on me under the DPA. This arrived on Today. Very intresting bit of info showed up on it. GE Money Wrote off the debt on 7th Jan 2011 at £3096 and Transfered to link on the same day and statement shows a credit for £87.42, So I take it that is how much Link paid for the debt. But link want to get the full £3096 from me. Why did GE Money not offer to write off the debt for £86.42 to me. And do you think at court I could offer to pay link what it cost them for the debt (the £86.42) so they are not out of pocket. I have asked link for a copy of my aggreement but none where sent (because I don't have an agreement with link).
I think it's very strange that link what a 36x markup on there outlay. This is worse than a loan shark and they are illegal.
What do you guys think. or is this common.
Thanks in advance.
27/06/2011 4:25 pm
Hi head-just-above-water.
I know this seems really odd, but what creditors do consider to be "distressed" debt really does sell for very low amounts.
I've never heard anything to the contrary that GE Money are fully entitled to sell the debt without making an equivalent offer to you to settle the debt at the same amount.
The reality is that creditors (like GE), if they did this, would be creating an incentive for people not to pay them in the future (if people came to know that at some point the debt could be settled at a tiny fraction of the book value).
Link seem to have bought the right to pursue you for the full debt. I'm afraid I think you'd have zero chance of getting a Court to allow you to pay Link the amount they paid for the debt (usual rider applies - we're not solicitors so take legal advice if you want to confirm your position). I've never heard of anything of this sort happening I'm afraid. Link bought the debt in the hope of making a profit upon collecting some or all of it, which is what they'll now try to do.
Sorry I cannot be more positive but hopefully the background is useful for you. This kind of assignment of debt really is very common, sometimes even after a trust deed has started.
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