I've just has a quick scan through the HMCS and DoJ sites, including CPR and cannot find any reference to assignment of CCJ'd and / or CO'd debts and if they are allowed. I really want to know if it is allowed, and if so, what are the regulations and limitations governing such an assignment.

As I understand it, it comes under what they call bad debt provision - they keep back an amount on their accounts that will be used to cover losses when a debt is not repaid. That amount is not treated as taxable for Corporation Tax as it is a provision against losses in the coming year. Income from sold debts is income, so it will (should) show up on the balance sheet as such and therefore be taxed (or added to the shareholders' dividend, or management bonuses to avoid being taxed)...

Thinking about that further, I wonder if it also means that the OC shouldn't be funding the purchase by means of loans to or investments in the buying company. That would be an interesting investigation, especially as certain lenders almost always sell to the same buyers...

It sounds like the OC isn't allowed to keep a 'share' of the account, rather tan having to sell it for the face value.

Sounds like a result - well done. I see today that Barclays are taking over Egg credit card accounts

Thanks, I'd often wondered how it worked.

Does it matter that on the agreement it may say 'governed by English Law' or words to that effect? If so, does it count the other way round, that an agreement based on Scottish Law has a five year limit?

As this story shows http://www.bbc.co.uk/news/business-12607773 the banks aren't making any losses on credit card debt when they write off accounts for tax purposes. Not only do they offset the loss against their tax liabilities, but they increase the margins on all the other accounts to cover that loss so they win both ways!

I've seen posts by CerberusAlert quoting a twelve month window in which the new owner has to register the change of ownership of the CCJ (in fact some other searches come up with 6 months), but I can't find any reference to prove the rule. It would be useful if there was some proof as in my case it's been almost three years since the assignment without any notification from the courts or the Land Registry. The new owners are claiming to be allowed to add statutory interest even though it's a CCA debt, but are reluctant to provide statements that show it.

I'd love to know how this works - does the court notify you of the change, can you challenge it, are there any sanctions if it isn't done in time, does it affect charging orders as well?

But surely there's still a write off of the balance against tax?

My view is that if we can't stop it happening, then the OC should at the very least offer the debtor the chance to settle the debt for 20% maximum before selling it on at anything lower than that rate. I made an offer to a bank to pay 60% in F&F which they turned down and then sold within a month, probably for less than 10% - where's the logic in that - unless of course they have shares in the debt buying company...

Count me in!

They can do this if the debt is in joint names - the 'joint and several' clause in most agreements. So you settle for 25% and they chase the joint debtor for the outstanding 75%.

Hi Jimbo, Thanks for the information about COs. In my situation the final CO was obtained and soon after the debt was sold (NOA received from new owner) about three years ago. I've been hassled to increase my payment by the new owner, but I've received no formal notification from HMCS or the Land Registry confirming that the ownership of the CCJ and CO have been changed. CerberusAlert mentions in another thread that the debt purchaser has only 12 months to notify the court of change of ownership. I'm looking to see if the new owner has lost the security of the CO by not following procedures. I will look into the Full & Final option as well. OMWO

If the CCJ is re-registered under the new owner, should we receive notification from the court? What happens after the 12 months is up and it hasn't been re-registered to the new owner?

If a debt is sold (absolute assignment) that has a CCJ and CO attached, what notification should be received from the court and/or Land Registry IF the ownership of the CCJ and CO is passed to the debt purchaser? In other words, if I haven't been notified by the court, does the new owner have any claim under the CCJ and if I haven't been notified by the LR does the new owner have any claim under the CO? If I stop paying the judgement amount to the OC, can the new owner enforce the CCJ and/or CO? Can I ask the court for the CCJ/CO to be marked as satisfied as I no longer have a debt with the OC in whose name the orders were made?

It would suggest to me that both you and the salesman are conspiring to commit fraud against the finance company....

http://www.bbc.co.uk/news/business-12524732 Good news - Halifax to pay back overcharges on mortgages when they didn't reduce the interest rates in step with the Bank of England reductions - I wondered about this at the time but assumed they had the right to do it.

But don't forget that now it impinges on far more than just access to credit - it can affect the ability to get a job, rent a property and probably far more than we realise. OMWO

By the way, is there still an APR calculator available anywhere?

No, not them...

Thanks SF. I'm only raising the question because I've got a loan that was on a DMP (now manually dealt with) and it looks like they have been adding interest for the whole time it has been on DMP so that the balance has been going up faster than the repayment rate. They are the only creditor to do this, all the others have stopped interest and charges a couple of years ago when the DMP started. I'm trying to find out if it was DN'd and/or terminated.

What exactly constitutes the termination of an account, and once terminated, what limits does it place on the OC's ability to charge interest on the remaining balance? If I understand correctly, issuing a DN that is not satisfied will/might result in termination. OMWO

Excellent BB, just excellent!