Whether selling or purchasing live agreements regulated by the Consumer Credit Act (CCA), or debts that have arisen under terminated regulated agreements, the CCA 2006 has undoubtedly had an impact.
Post-contract information: who is responsible after the debt sale?
When an agreement is assigned, the general rule is that the buyer acquires the “benefit” of the agreement, but not the “burden”. In other words, under English law, the buyer will not automatically be liable for performing the seller’s ongoing contractual duties under the agreement. For this reason, where the buyer is to undertake these responsibilities, the debt sale agreement should impose an obligation on the buyer to do this.
However, the CCA imposes various statutory duties on “creditors” and “owners”. For example, CCA 2006 introduced additional requirements upon creditors to provide debtors and hirers with post-contract information. These include sending debtors notices of sums in arrears in relation to their accounts, notices of default sums that have become payable (for example, default interest) and some new periodic statements.
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