What is a Deed of Assignment

A deed of assignment relating to a debt is a legal document that transfers the ownership of a debt from one party to another. It is often used when a lender wants to sell or transfer a debt to a third party. The deed of assignment typically includes the details of the debt, such as the amount owed, the identity of the debtor, and the terms of repayment. The debtor is usually notified of the transfer, and is instructed to make payments to the new owner of the debt. The deed of assignment is a legally binding agreement that sets out the terms of the transfer, and can be enforced by the parties involved.

Why are My Debts Sold On

Debts are sold on for a number of reasons. One of the primary reasons is to transfer the risk of non-payment from the original creditor to a third party. By selling the debt, the original creditor can free up their resources and focus on other aspects of their business, while the third party assumes the risk of collecting the debt.

Additionally, selling debts can be a profitable business for third-party debt buyers. They often purchase the debt for a fraction of the original amount owed, and then attempt to collect the full amount from the debtor, thus making a profit. Debt buyers may also purchase debt portfolios in bulk, which allows them to acquire a large number of debts at a discounted price.

Overall, the sale of debts in the UK is a common practice that allows creditors to reduce their risk, frees up resources, and provides a profitable business opportunity for third-party debt buyers. However, the sale of debts can also have implications for the debtor, as they may be subject to new terms and conditions, and may have to deal with a new creditor.

Example of a Deed of Assignment

How Much was the Debt Purchased For

So as you can see from the document above, this was a rather small debt. The total debt outstanding was for £321, this was then sold on and according to the deed of assignment, purchased for £57.

Now this is where there is a sting in the tail. Even thought the original debt of £321 was purchased for £57, the company purchasing this debt will still pursue the debtor for the full amount of £321. So this also works out that the debt £321 was purchased for 18 pence in the pound.

How Do I Get a Copy of the Deed of Assignment

In theory, you should be able to write to the company and request a copy of the deed of assignment. However, in reality I have heard many stories where people have requested a copy of the deed of assignment, but their request has either been rejected or ignored. Further research show:

Creditors may be reluctant to show a deed of assignment to the person whom the debt belongs to, often referred to as the debtor, because they may view the document as confidential or privileged information that is not required to be provided to the debtor.

Additionally, the creditor may be concerned that providing a copy of the deed of assignment could result in the debtor disputing the validity of the debt, which could complicate the collection process. This could potentially delay the repayment process or even result in the debt being discharged.

Furthermore, creditors may argue that the deed of assignment is a private contract between the creditor and the third party to whom the debt has been assigned, and that the debtor is not a party to the contract and therefore does not have a right to see it.

There is probably also, a reluctance for a creditor and a debt collection agency to disclose how much the debt was actually sold on for. Also, the potential profit that can be made from collecting the full amount owed.

How Much is My Debt Worth

If you are interested in finding out more about the value of debt, you may be interested in this post; How Much is My Debt Worth.