What Happens When Companies Sell Debt to a Collection Agency

A bailiff is usually involved to collect a debt that has a court order attached to it. They are most commonly called in to collect a person's assets when they fail to meet the repayments of a County Court Judgment. Bailiffs are hired by private companies or by the court from which the order was issued.

A debt collection agency is private and is usually hired to collect outstanding debt on behalf of their client. When a lender decides to sell debt to a collection agency, you no longer owe the lender the money but the agency instead. A debt collection agency does not have the same powers as bailiffs. This is generally because bailiffs have more legal options as they are usually working on behalf of the court.

All debt collection agencies are required by law to hold a special license; this allows them to visit debtors in their home. Despite this, agency collectors have no right to come into your home and if you ask them to leave,they should do so straight away. A debt collection agency is held to strict rules of business practice, which they must follow in order to keep their license.

If your lender does sell debt to a collection agency, you will need to discuss repayment terms with the agency as oppose your lender. They will usually work with you by coming up with a manageable repayment plan.It is important you stick to the plan to avoid more serious action being taken in the future.


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