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QLD Commonwealth Bank Sold Debt to Debt Collectors?

Discussion in 'Debt and Bankruptcy Law Forum' started by Shricket, 12 May 2016.

  1. Shricket

    Shricket Member

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    So I received a letter from Commonwealth Bank about some arrears and that if they weren't fixed they would take legal action, citing a number to call. I called, made arrangements and all was good.
    My partner lost his job unexpectedly last week and as such our pay was substantially smaller than budgeted, so I wanted to make some amendments to the arrangements I had made. But going into Commonwealth Bank, I was advised that the debts had all been sold to a debt collections agency and I no longer could converse with the bank regarding anything. When pressed about which company has bought, the debt the bank teller could tell me.

    Now, I was thinking can I contact the guy I'd made arrangements with (who never said where he was from or that he wasn't with the bank) and ask for documentation on what the debt total is? And also, knowing they bought the debt can I refuse to pay any more than what they paid for it?
     
  2. Sophea

    Sophea Well-Known Member

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    Hi Shricket,

    Yes this is a common practice, whereby a debt business buys debts for less than their value and then makes money by recovering them.

    You can certainly ask for any information held by the new company about the debt including the total that is due. As you already appear to understand, you cannot negotiate with the bank now. The debt belongs to the new company, it has been assigned all of the bank's legal rights under the agreement you had with the bank.

    You can negotiate a payment plan with the new company if they wish to agree to it, however, you have no 'right' to a payment plan. If they agree to a payment plan they must honour it as long as you honour your end of the bargain. If you cannot then they can request the full balance of the loan due. You can plead hardship, but there is no legal requirement for them to show you leniency on this basis.

    No. They have purchased from the bank a full assignment of the debt. Therefore, they have all the rights of the bank to pursue the full amount of the loan. If people had a right only the pay what they paid for the loan how do you think they would make money? How is it fair that you should pay less than what you agreed to pay back to the bank?
     
  3. Marg4578

    Marg4578 Well-Known Member

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    Hi there, I have a question about Notice of Assignment. Is that enough to prove that the debt collector now owns the debt? Shouldn't there be a deed of assignment?
     
  4. Tim W

    Tim W Lawyer

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    @Marg4578, please keep all your related questions in one thread.
     
  5. Marg4578

    Marg4578 Well-Known Member

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    OK. I will copy this question in my original post. Also this is the wrong state. Sorry, I am new at this.
     

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