Debt is sold to collectors: does the bank have the right to do so? What if the debt was sold to collectors?

Often in the case of arrears, it turns out that the debt is sold to collectors. In fact, this is a fairly common practice, especially in Russia. Applies to everyone indiscriminately. And it is this behavior that causes fear, panic, and apathy among citizens.

Why Collection Companies do not always act legally and humanely. They are confronted with the task: with all their forces, no matter what, exactly, to keep debts from the borrower.

And everything, to the last penny, even in the shortest possible time. Can they sell debts to collectors? How legal is it? What awaits you in this case and how to deal with this situation? All this further. 

There is some right

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It is worth starting with the legality of the operation. After all, if the bank does not act by law, then you will be able to prove it and then also stay, as they say, in black. This means that you will be able to protect your rights. This is quite normal.

Debt sold to collectors? The legality of this action cannot be said exactly. It is advised to just carefully read the terms of your loan agreement. Why Because there are prescribed all the points that can only care both the borrower and the lender. Read the document carefully before signing.

You can often see a point in the transfer of debt to third parties. That is precisely what the legitimacy of action is. Can the bank sell debtors? In the presence of such mention – easily. Moreover, this type of action is considered legal. If that item is not entered in the contract, the transfer of the debt to them is simply impossible.

When

With the law more or less resolved. What will be next? For example, when you might be concerned about a collision with collection companies? After all, some of them suffer, but some do not. At the same time, however, the first category of people and the second category have debts.

Can they sell debts to collectors? Easy and legal. Look carefully at the terms of your contract. When exactly can I face this problem? Certainly, there are no algorithms and recommendations.

Everything depends on the particular bank. Usually, they start to communicate with collectors after a decent debt, which is already accumulating for the debtor. Who? This is already decided by the bank itself. Some collectors may come after the first month of delay and someone generally does not pay for years and is not afraid of anything and anyone. 

In principle, often malevolent non-defrauders fight about 2-3 months past due. No matter how much you accumulated. Collectors appear much less frequently 3 years after the debts arose. Such cases are perhaps the most legitimate. But unfortunately, they are almost unrealistic. In practice, banks only run on collection companies after the first payment delay.

Here is the news!

True, not everything is as simple as it seems. The main advantage of banking and credit organizations is that the transfer of debt to third parties does not require the debtor’s consent. This means that news about this event may be a surprise.

Does the bank have the right to sell debts to collectors? If the contract contains provisions on the transfer of obligations to third parties, then completely. And legally. Otherwise, your rights will be violated. But in practice, nobody minds. It often turns out that borrowers learn about resale directly from the companies they collect.

This means that the banks act as they see fit. Although they warn citizens, it is worth it. And all this is not for them, but for protection against certain consequences. This principle, however, is not done, they represent a surprise for debtors in the form of communication with collecting companies. 

I won’t pay

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Bank sold debt to collectors? What to do, To begin with, don’t panic. The mere mention of collection companies often leads citizens to apathy. Don’t do it. To begin, calm down and try to understand that everything is not as scary as it seems. Even though the bank has transferred the “retirement” of the debt to third parties, you have your rights. And you can work with them.

First, you are entitled to a new lender to request all documents confirming the transfer of debt, as well as regulatory measures of the company. This means that you must provide proof of the transfer of the recovery rights. You cannot legally pay until collectors do so. In fact, such companies are usually not too busy with paperwork. This means that there is a possibility that the bank and collectors will act according to the agreement without any background. In a similar situation, just don’t pay. You have the right to do so.

Claims

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What if the debt was sold to collectors? The second point of the action is the lodging of claims. This is only relevant if you had it in relation to a banking organization. This means you can complain about collectors. 

Remember that this behavior is frightening to many. After all, the collection companies are not banking assistants, but in Russia, it is a real company with its unspoken rules of conduct.

A typical debtor’s complaint can often bring a lot of problems. And all because of the fact that the work of collectors is not always legal in itself. Moreover, in Russia, they are increasingly proving the illegality of this business. So don’t be afraid to file a complaint.

Easier to pay

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Is your debt sold to collectors? Some people believe that in this situation it is easiest and logical to gather power and pay off debts. And with everyone. So that they can all be with you and live in peace.

It is basically an option. Especially if you have the option to pay bills. Why? Because only the lack of debt will turn away the collection company from you. However, this type of technique is very rarely used in practice.

Why? It is all about the activities of collection companies. Most often, borrowers do not have a real opportunity to pay for one reason or another, or simply want to protect themselves. At the same time, the collectors “made money” by all means, violating their rights. So why do you have to pay? How to be in this situation? 

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