Debt has not been sold but just passed onto an external collections agency to chase the debt. If the customer then has an approved IVA, does this mean we as the original creditor need to take back the account from the external collections agency? Or can the practitioner now confer with the external collections agency going forward
As far as I am aware, the debt will remain with the original creditor. If the debtor has an IVA then this debt is covered by that and the IP company will deal directly with the creditor. The debt collection company is acting for the creditor, not in place of.
I'm not 100% sure but hopefully one of the other experts can come on and comment.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If the debt was sold then the IP will deal directly with the new debt owner, as if it was the original owner. The new owner is bound as though they were the original owner. But in this case the collector simply has to desist and the IP will deal with the actual creditor. The collector could still continue to act as the creditor's agent, but the debt is still bound by the IVA and the agent will only be entitled to handle dividend distributions under the IVA terms.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
