Things sometimes change and your debt is no exception. Occasionally your debt will be moved to a different debt collection agency for no apparent reason. Despite the fact you have been making payments for some time. If you have been paying the original creditor then they may have decided to use an external debt collector. It is all part of the process and is not unusual. So long as you get it sorted you have nothing to worry about.
This transfer process happens from time to time. For example I was paying off my Aqua Card Debt to a company called Moorcroft for around eighteen months. Then one day out of the blue I received a letter from a company called Lowell Portfolio who had purchased the account and become the owner of it.
What do you do if your debt is moved to another collection agency?
If you are managing your own debt management plan then you should write to the new debt collection agency and make your offer of repayment, just like you did with the previous one. Make sure you send your income and expenditure form and ask for details on how you can make payment. Problem solved.
If you are using a third party such as StepChange or Payplan, make sure you let them know that the debt has moved to a new agency. They will then do what is required to start making your payments to the new company collecting your debt.
What about Interest and Charges?
It is unlikely that you will begin to start receiving any interest and charges but there are always exceptions. If you have been paying someone like Capital One who would probably have been charging you, you may now find that this stops now your debt is with a collection agency. If for some reason you start being charged again, write to the debt collection agency asking for these interest and charges to be frozen.
Your are not dealing with your debts but have been told the debt has transferred
If you aren’t currently dealing with your debts but are being told a debt has been transferred now might be the best time to start sorting things out. If you would like to get help with your debt, visit the Get Debt Help section of this blog to find a list of organisations who can help you with your debt problems.
Do you find your debts transferring around a lot? If so how did you deal with it?