Cons/Credit Act 1974 - can anyone...

[charlie*]

... point to any information or references in the Act that specifically permits OR's to sell debts to third parties.

 

If this is in the wrong place, my apologies.

 

Thanks

 

charlie*

[ims21]

I think it will be the Law of Property Act that you should be looking at

 

ims

[charlie*]

Item 16 - 16.1 and 2 - BofScot T & C's states they are free to sell a debt....

 

Then in brackets (Consumer Credit Act 1974)

 

I will follow your suggestion, in the meantime if anyone has a copy or can point to a copy of the CCAct, that would be great - I used to have one - now I can' find one anywhere.

 

Many thanks

[ims21]

Hi

 

Consumer Credit Act here

 

http://www.legislation.gov.uk/ukpga/1974/39/contents

 

ims

[ims21]

The bit about assignment is S82A

 

http://www.legislation.gov.uk/ukpga/1974/39/section/82A

 

ims

[charlie*]

IMS21...

 

I am very much obliged to you.

 

Best wishes and thankyou

 

charlie*

[charlie*]

oops, 'ere we go again... (said the earwig as he fell over the cliff)

 

It would appear that 82A only kicks in on agreements old or new AFTER Feb 2011

 

What went before and how would it before and/or after tie in with Contracts(Rights of Third Parties) 1999 where third parties must be listed in an agreement/t&c's and cannot be involved in prommisory notes, financial instruments or bills of exchange.

 

Any comments chaps? (all inclusive term, lads and lasses)

[theghost]

As far as I understand it a debt is an asset and can be sold just like any other asset - for example gym memberships or mobile phone contracts. So if the original company you have signed up with wants to sell themselves off to another party then they can do so and your contract automatically goes to the new company. Likewise, the original company may just want to sell off your account for whatever reason. It is usually written into the contract that this may happen.

 

The CCA just has extra requirements when this happens.

[charlie*]

Hi ghost,

 

Yes, I agree, these agreements are promissory notes - financial instruments, that are traded - just like those in America with the sub-prime mortgages - but there must be a reason for our own...

 

Contracts (Rights of Third Parties) 1999

 

Section 1 sets out the circumstances by which a third party may seek to enforce the terms of a contract

Section 2, sub sections 1 - 3 sets out the circiumstances by which a third party can become a third party

Section 6, sub-section 1 confers no rights to a third party in the case of Bills of Exchange, Prommisory Notes and other negotiable instruments.

 

It states quite clearly that in order to be a third party, you have to be named in the T & C's.

 

If this counters anything else - CCA S.82A, Law of Property Act etc, then we need to know.

 

Thanks for your input

[ims21]

Thread moved

[theghost]

http://www.website-law.co.uk/blog/contract-law/the-contracts-rights-of-third-parties-act-1999-an-introduction/

 

Above website has a good explanation - its basically a law that was brought in to give rights to people who may not be party to a contract but have an interest in them.

 

I am not sure the law affects Credit type issues.

 

 

Example given:

 

English law can be unfair. In 1962, Peter Beswick agreed to hand over his business to his nephew, John. In exchange, John contracted to pay a sum of money to Peter each week and, after his death, to Peter’s widow. After Peter died, John decided not to pay.

 

He almost succeeded. Peter’s widow could not sue under the contract herself as she was not a party to it — but she was administering Peter’s estate, and was able to enforce it on his behalf.

 

This is an example of the rule of privity of contract: just as only the parties to a contract can acquire legal obligations under that contract, they are also as a general rule the only parties which acquire any legal rights under it. A third party, like Peter’s widow, cannot enforce a contract where they suffer a loss as a result of its breach.

 

The Contracts (Rights of Third Parties) Act 1999 (CRTPA) creates an exception which mitigates the harshness of this rule. Where a contract confers a benefit on a third party, that party may acquire the right to sue.

[Ganymede]

Are you trying to suggest the a regulated agreement can't be assigned?

[theghost]

Me? No.

 

The law quoted has nothing to do with contracts/assets being sold.

 

It exists to give third parties rights under a contract where they have an interest but are not a party to the cotnract.

 

They are 2 seperate issues as far as I can work out. There is nothing in the quoted legislation (1999 Act) that prevents agreements from being sold.

[Ganymede]

Me? No.

 

The law quoted has nothing to do with contracts/assets being sold.

 

It exists to give third parties rights under a contract where they have an interest but are not a party to the cotnract.

 

They are 2 seperate issues as far as I can work out. There is nothing in the quoted legislation (1999 Act) that prevents agreements from being sold.

 

No sorry, the OP.