Debts regulated by the Consumer Credit Act, can be sold on or placed with another company any time after you stop paying, this is a normal part of the debt collection process. This applies to most common types of consumer debt such as a loans, overdrafts, credit cards and store cards, hire purchase and catalogues.

Can you go to jail for not paying a loan company?

Can You Go To Jail For Not Paying Debt? (including student loans & credit card debt) The short answer is no – you will not go to jail for failing to pay back your debts.

Can a creditor sell your debt to a collection agency?

The creditor you originally owed money may have sold your debt to a collection agency, which in turn may have sold it to another collection agency. A mistake somewhere along the way could mean that the collector contacting you has incorrect information.

What happens when a debt is sold to another company?

In this situation, you still owe the money to your original creditor – the debt collection agency is just acting on their behalf to get it back. The second reason a debt collection agency could get in touch with you is if your creditor has sold the debt on to them.

What to do if a collection company contacts you?

If a collections company contacts you and tries to collect a debt on an account you do not remember having, be sure to request account information to ensure it’s really yours. By law, they have to provide you with more information, plus proof that the debt is yours.

What happens if you ignore a letter from a debt collector?

And if you’re not happy with their response, you can go to the Financial Ombudsman Service (FOS). What debt collectors can do is send you letters and call you to get you to pay your debt. If you ignore this contact, the debt collection agency can take court action against you.