Pre-insolvency advice Loan Sales: Should I Be Worried?

If your loan has been sold to a third party you could fall victim to aggressive repossession techniques such as legal action, repossession of assets or Bankruptcy.

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Loan Sales: Should I Be Worried?

Often when debtors default on a loan, their original creditor will sell the debt to a third party. These debt purchasing companies or ‘Vulture funds‘ will pursue you for the full amount owed and often use aggressive techniques to recover outstanding liabilities.

This was common practice after the 2008 crash but now with more and more people defaulting on debts, we are seeing more and more instances of loan sales and subsequent legal action such as repossessions and Bankruptcies.

You are at particular risk if you have signed a personal guarantee for a loan, as you are personally liable for the full amount borrowed.

Why should I be worried?

Vulture funds buy your loan for less than its value e.g. a £75,000 debt bought for £16,000. This means that they are willing to invest more time and effort to pursue you. This usually takes the form of more aggressive techniques e.g. sending recovery agents to your home.

When your debt is bought you will have to reach a repayment agreement with your new creditor. These companies are notoriously difficult to negotiate with and will be less willing to settle.

How will I know if my loan has been sold?

You will receive correspondence from your original and/or new creditor. After this, you will have to reach a payment agreement with your new creditor. They are under no obligation to accept your previous terms and may demand larger or full repayments.

What are my options?

A loan sale does not change your approach, as with any debt communication is key. Ignoring any creditor can have serious ramifications for you personally as well as your business.

After over a decade in the business, Bell & Company have regular communication and good working relationships with creditors, allowing us to reach settlements that would not be possible otherwise.

 

 
 
 
 

You can trust Bell & Company

  • We will see every loan sale case through until the end
  • We are experienced in negotiating with creditors
  • We are transparent from the start with our costs, your first consultation is free
  • We’ll give you a clear, honest assessment of your options in regard to your personal guarantee
  • You’ll have our best legal, financial and insurance specialists working on your behalf who are familiar with loan sales
  • Our team will negotiate tenaciously on your behalf
  • You’ll find us open, approachable and compassionate to deal with.

Tick iconYour steps to a debt-free future

1. Simply complete our online contact form or call us now
2. Our specialists will arrange a meeting to review your best options
3. Gain peace of mind at last, knowing you’re in safe hands

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Free intial Consultation

From the outset, we establish clear bottom lines with our clients, so we understand what their priorities are and what must be protected. We then create a strategy to navigate the way out of corporate and personal debt with impartial advice and rigorous action.

Specialist, Impartial Advice

There are some very sharp minds at Bell & Company, so we’re extremely adept at finding unconventional strategies and solutions to resolve our clients’ debt dilemmas. This means that when you’re with us, you can be assured that we’re working for your best possible outcome.

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