Notice of Assignment of Debt – What You Can Do
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
When you get a ‘notice of assignment of debt’, you might feel worried. This letter means your debt has been passed to someone else, often a debt collection agency. We understand this can be scary, but don’t worry; we’re here to help. More than 170,000 people come to our website every month for advice on issues like this.
This article will help you understand:
- What a ‘notice of assignment of debt’ is.
- What to do if you get one.
- Different kinds of notices.
- Your rights when your debt is passed on.
- How to deal with your debt.
We have a team who know what it’s like to be in your shoes, as some of them have had their own debts passed on to debt collectors. Our aim is to help you handle this situation in the best way possible. Let’s dive in and learn more about dealing with a ‘notice of assignment of debt’.
Notice of assignment of debt – how to deal with it
So, what does a notice of assignment of debt mean for you?
To put it very simply, it means that you now owe a different company money. You will be told in the notice of assignment of debt letter about which company has acquired the debt, so going forward, you should be dealing with them.
Many people believe that it is a blessing in disguise having a notice of assignment of debt. The new company may be easier to deal with, or may even be more flexible when it comes to interest rates and charges, which gives you more scope to pay back your debt quickly and easily.
Pay them
Getting your debt paid off is in both your and your creditor’s best interests. It will mean you don’t have to deal with lots of strongly worded letters and phone calls, and it means that they don’t have to consider further action against you.
Payment plans
With a notice of assignment of debt, you may be able to arrange a suitable payment plan to repay the outstanding amount with the new company.
Often, these third parties are dedicated debt collection agencies, and deal with debts like yours every day. This means that they are set up to deal with any repayment plans and could offer interest freezes.
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
| Monthly income | £2,504 |
| Monthly expenses | £2,345 |
| Total debt | £32,049 |
Monthly debt repayments
| Before | £587 |
| After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
What types of notice of assignment of debt are there?
You may think you have a grasp on what notice of assignment of debt is. It gets slightly more confusing, unfortunately, as there are two distinct types of notice of assignment of debt.
These two types are Legal and Equitable.
Legal
A legal notice of assignment of debt gives the purchasing company (the company that has bought the debt) the power to enforce the amount you owe.
You will also end up making payments to this company instead of the original creditor.
Equitable
A notice of assignment of debt that is described as ‘equitable,’ means that only the amount owed by you to the original creditor is transferred to the third party, or debt collection agency.
In these instances, the company that purchases the debt cannot enforce it, and the original creditor will still retain their original rights and responsibilities.
What rights do debtors have when their debt is assigned?
- You must be informed about the assignment of the debt in the form of notice of assignment of debt
- You have the right to obtain accurate and clear information about the debt, including the amount owed and to whom it is owed
- You can dispute the debt if you believe it is incorrect or unjust
- You have a right to be offered a reasonable and affordable repayment plan. Don’t pressured into agreeing a repayment plan that you can’t afford
- Debt collectors can’t harass or threaten you.
Thousands have already tackled their debt
Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.
Natasha
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Why do creditors sell debts?
One of the most common questions in regard to notice of assignment of debt is why the original creditor sold the debt in the first place. And how can they sell it anyway?
It is, in fact, perfectly legal for the original creditor to sell the debt to another company.
Often, they include a clause in the fine print when you sign any credit agreement – it usually states that they are able to assign their rights to a third party. This inevitably means that you cannot dispute it.
FAQs
We go through a few of the more commonly asked questions about notice of assignment of debt, and what it might mean for you.
