Debt sold to collectors: does the bank have the right to do so? What to do if the debt is sold to collectors?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Often now, when debts arise, it turns out that the debt has been sold to collectors. Actually, this is a fairly common practice, especially in Russia. Applies to everyone indiscriminately. And just such behavior causes fear, panic and apathy among citizens. Why? Collection companies do not always act legally and humanely. They are faced with the task: by all means, no matter what it is, to knock out debts from the debtor. And everything, to the last penny, and even in the shortest possible time. Can they sell debt to debt collectors? How legal is it? What awaits you in such a case and how to deal with this situation? More on all this later.

Is there a right

It's worth starting with the legality of the operation. After all, if the bank does not act according to the law, then you can prove it, and then also stay, as they say, in the black. That is, you will be able to protect your rights. This is quite normal.

Debt sold to collectors? Nothing can be said for sure about the legality of this action. Unless you advise only carefully read the terms of your loan agreement. Why? Because thereall the points that can only concern both the borrower and the lender are prescribed. So read the document carefully before you sign it.

You can often see here a clause on the right to transfer debt to third parties. This is what indicates the legitimacy of the action. Can a bank sell debt to debt collectors? If there is such a mention - easily. Moreover, this kind of event is considered legal. If the specified clause is not spelled out in the contract, then the transfer of debt to someone is simply impossible.

When

Legality is more or less sorted out. What's next? When, for example, can you be afraid of a collision with collection companies? After all, someone suffers from them, and someone does not. But at the same time, both the first category of persons and the second have a debt.

Can debt collectors be sold? Quite simply, and legally. It is enough to carefully look at the terms of your contract. When exactly can you encounter this problem? There are certainly no algorithms and recommendations. It all depends on the particular bank. Usually, communication with collectors begins after the debtor already accumulates a decent debt. Which one? This is already decided by the bank at its discretion. Collectors can come to someone after the first month of delay, and someone does not pay at all for years and is not afraid of anything or anyone.

In principle, it is not uncommon to start fighting with persistent non-payers after about 2-3 months of delay. Regardless of how much you have accumulated. Much less oftencollectors appear 3 years after the occurrence of debts. Such cases are perhaps the most legitimate. But, unfortunately, they are almost unrealistic. In practice, banks just run to collection companies, after the very first delays in payments.

Here is the news

True, not everything is as easy as it seems at first glance. The main advantage that banking and credit organizations operate is that the consent of the borrower is not required to transfer debt to third parties. That is, news about this event may come as a surprise to you.

Does a bank have the right to sell debt to collectors? If the contract contains a clause on the transfer of obligations to third parties, then completely. And legally. Otherwise, your rights will be violated. But in practice, this is of little concern. It often happens that debtors learn about the resale directly from collection companies. That is, banks act as they see fit. Although it would be worth warning the citizens. And all this is not even for their sake, but to protect themselves from certain consequences. But they don’t do this out of principle, they give debtors a surprise in the form of communication with collection companies.

I won't pay

Bank sold debt to collectors? What to do? For starters, don't panic. One mention of collection companies often makes citizens fall into apathy. Doing this is not worth it. First, calm down and try to understand that everything is not as scary as it seems. Even though the bank gave"knocking out" debt to third parties, you have your rights. And they can be operated on.

Firstly, you have the right to demand from the new creditor all documents confirming the transfer of the debt, as well as regulating the actions of a particular company. That is, you must show evidence of the transfer of debt collection rights. Until the collectors do this, you can legally not pay. In fact, usually such firms are not very involved in paperwork. This means that there is a possibility that the bank and collectors act by agreement, without any supporting documents. In this situation, just don't pay. You are en titled to it.

Claims

What to do if the debt was sold to collectors? The second point of action is the presentation of claims. It is relevant only if you had them in relation to a banking organization. That is, you can complain about the collectors.

Remember, this kind of behavior scares a lot of people. After all, collection companies are not banking assistants at all, in Russia this is a real business, which has its own unspoken rules of conduct. Often a simple complaint from a debtor can bring a lot of trouble. And all this is due to the fact that the work of collectors in itself is not always legal. Moreover, in Russia now more and more often they begin to prove the illegality of this business. So don't be afraid to make claims.

Easier to pay

Is your debt sold to collectors? Some citizensbelieve that in such a situation, it is easier and more logical to gather strength and pay off debts. And with everyone. So that everyone is left behind and you can live in peace.

In principle, this is an option. Especially if you have the ability to pay bills. Why? Because only the absence of debt will distract collection companies from you. However, in practice, this kind of technique is used extremely rarely.

Why? It's all about the activities of collection companies. Most often, either debtors do not have a real opportunity to pay for one reason or another, or they simply want to protect themselves. And collectors at the same time "knock out" money with all their might, violating their rights. So why should you pay then? How to deal with this situation?

Camera to go?

Is your debt sold to collectors? How to be now? Basically, it's up to you to decide. But in practice, most often collection companies act illegally in order to intimidate and knock out a debt from a debtor. Regardless of his situation in life. This is wrong and illegal. We need to protect ourselves.

Therefore, always carry a video / photo camera, as well as a voice recorder. And in general, everything that can only prove a violation of your rights. The main activity of collectors to knock out debts is nothing more than damage to someone else's property. Try to record all such violations, and stock up on witnesses. You never know, you will need them.

The main thing - do not pay your bills right there. If they acted against you not according tolaw, payment may not be made. Instead, it is enough to turn "to the right place" in order to defend your own rights. A few years ago, this practice was not so common, but recently such events are happening more and more often.

Straight to court

There is no need to be afraid of collectors. In fact, if you approach the issue correctly, you can also stay "in the black". That is, not to pay the debt, and also to collect certain funds from the bank / collection company. How exactly is this done? Going to court!

The main thing here is the presence of evidence that indicates a violation of your rights. Most often, a few disinterested witnesses (for example, neighbors) are enough, as well as an established fact of damage to your property. Printouts and recordings of calls, photographs of threats, and so on - all this can be recorded and brought to court with a claim.

In this scenario, most likely, you will win the case. And they will not only remove your debt from you (especially if the damage caused is several times greater than the amount of the debt), but they will also force the collectors or the bank to compensate for the harm - both material and moral. The main thing is to prove the illegality of the actions of the new creditor.

Anti-collectors

Another modern way out is to contact anti-collector companies. There, for a small fee, they will help you overcome new creditors. That is, they will consult here on further actions, help to go to court.

True, this method is not yet so popular in Russia, but from year to year it is more and more in demand. Contacting anti-collection companies can protect you from illegal actions of collectors, and also, most likely, get rid of debt.