So if a bank goes down, what about my overdraft ?

[Tampon]

I am taking it if you have money saved with a bank and it goes down, you lose it, what about money borrowed ?

Bet that is not capped and you end up paying it all back.

[BermyAndy]

Er...

[davemac250]

Somebody else 'buys' the debt, you still pay.

[Bill Carr]

Oh God, we really are going to idiot ourselves in to a crisis, aren't we?

[esselte]

davemac250 said:

Somebody else 'buys' the debt,

Isn't this how all the crap started?

[PhilLL]

They just write it off! So if you think your bank is going down you might as well spend, spend, spend...

[MaxAndRuby]

esselte said:

davemac250 said:

Somebody else 'buys' the debt,

Isn't this how all the crap started?

[Tampon]

Just to clarify, I am not in debt ( not any more ) but wondered what the situation was.

Didn't know if they write it off.

A security company that used to rent workshop and office space off me used to go bankrupt ( did it twice ) had to go to meeting with the other creditors, luckily we got paid, were speaking to some of the other guys and saw they were saying things like "when you get back on your feet give us a call" these were reps from Sony, Panasonic etc big companies.

Spoke to a few and they said they expect x% to go under, work that into the price so they are happy to carry on supplying.

[BermyAndy]

Consumer debt is likely to be sold to companies such as first credit and cabot, who will pay a small amount of pennies to the pound of debt, and then try and collect as much of the debt you owe

The buying of consumer debt, to the best of my knowledge, did not lead to the current meltdown in the financial markets

[Tampon]

BermyAndy said:

Consumer debt is likely to be sold to companies such as first credit and cabot, who will pay a small amount of pennies to the pound of debt, and then try and collect as much of the debt you owe

The buying of consumer debt, to the best of my knowledge, did not lead to the current meltdown in the financial markets

Thankyou, thats what I wanted to know.

I feel cleverer now.

[embrolium]

Wouldn't privity of contract preclude a 3rd party from having any right to enforce a debt which owed to someone else?

As far as I can tell, you would need to give permission for the bank to sell your debt.

[Seany88]

What about timescales? I assume it'd take some time...interest-free possibly?

Edited by Seany88 on Tuesday 7th October 17:11

[BermyAndy]

embrolium said:

Wouldn't privity of contract preclude a 3rd party from having any right to enforce a debt which owed to someone else?

As far as I can tell, you would need to give permission for the bank to sell your debt.

Im not sure of the exact paper trail that goes on, but I think there are usually clauses in the original credit agreement you sign, or there is something in the CCA that says so long as you have been informed the debt is in default and other actions may be taken, then its free game

Its a popular route for people who have their debt bought to go down, to basically say to prove you owe my debt legally. Its just a delay tactic though