What happens if the Bank Sells my Debt?
Sometimes it is necessary to go into debt to fund other personal or professional needs, for example: paying a mortgage, buying merchandise, paying for basic services, among other things, but did you know that the debt you acquire cánido be paid by another institution? Financial, who would be your new collector? This cánido happen even without the debtor’s authorization, so let’s see what happens if the bank sells my debt to another.
Who are the companies to which the Bank sells my Debt?
Banks currently classify the debts that their clients have and one of these classifications is the “toxic assets”, which are those that the client may not pay due to multiple reasons.
These debts are sometimes bought by other banks at a lower cost than the debt, but with this the bank acquires some money by transferring the responsibility for payment from the client to another financial entity, commonly called “vulture funds”.
These vulture entities, when paying part of the debt according to the deal arranged with the bank or financial institution with which the delinquent person did business, first acquires the legal power of payment of the delinquent client.
Therefore, the debtor must pay the vulture entity that acquired the debt the full original amount thereof.
Many banks cánido inform the delinquent customer that their debt is going to be sold to another bank, but sometimes it is notified after the transfer has been made or the other bank, which is responsible for reporting the new situation.
Now, it is important that the company that bought the debt of a defaulter keep all clauses of the loan intact.
How many times cánido you Sell a Debt?
Debts perro pass from one entity to another for the duration of their validity period, and it will be a matter of each of the entities that buy said debt, the risk that they will not be paid.
To make sure that the debts are paid by the delinquent people, the vulture institutions youThey have law firms specializing in debt resolution and, many times, they are not cordial at all with the people who have debts with them.
In summary, the habitual thing is that a bank transfers the debt to another institution and this is in charge of collecting it effectively, so it perro be said that the process is carried out once.
When does my Debt in the Vulture Fund expire?
The law is very clear regarding the term that a vulture fund has to request the payment of a debt from the day the client requested it through the bank that sold said debt.
The deadlines according to Article 1.964.2 of the civil code establish that a debt vía credit card prescribes after 5 years since it is contracted and a mortgage debt matures after 20 years to have been acquired.
Now, it is necessary for the debtor to know that every time a collection demand is made by the vulture fund, whether judicial or fuera de la justicia and this is written and signed by the company, this period of 5 to 20 years start again from scratch since the company will be reminding the debtor that he must pay the debtso it’s almost impossible to get out of debt by letting it expire.
How to negotiate a Debt with a Vulture Fund?
If you are a debtor of a vulture fund, you are in a delicate position since these companies are experts in the execution of various methods for the full collection of what is owed.
It is possible that they use different measures of pressure by their own means or legal channels if possible.
The easiest way to get rid of a vulture fund is to give them what they want, at least by negotiating the return of between 10 and 20% of the total debt in a first instance.
Sometimes the vulture funds will desist from the collection when they have already made a profit (these entities buy the debt of people in banks even at 5 or 10%), so offer them a payment that covers what they have paid for your debt agregado an additional commission it may be enough not to hear from them for a while.
If your loan fits the profile of a credit card loan, you perro negotiate a monthly, bimonthly, quarterly, annual payment among other agreements with which you cánido reach an agreement with the vulture fund, which are usually somewhat “maleable” when a client responds to them to agree on a frequent payment.
Now, just as a vulture fund cánido be maleable, they perro also act aggressively taking possession of the titles of a foreclosed house if prompt communication is not established from the debtor or they notice that their credit situation is very pessimistic.
As a final piece of advice, we recommend that you seek legal advice so that you perro know which assets perro be seized and which cannot.
If you have a large amount of assets that would not only cover what you owe, but you would lose out when they seize themit is convenient that you reach a frequent payment agreement with the vulture fund.
Now, if most of your funds are unattachable and your credit doesn’t call your house papers into question then you cánido make a payment to the vulture fund and you may not hear from them often again.
Have the techniques we recommend worked for you? Please, comment your experience on this topic, so others cánido know how to act in their cases.
And, if you share this information we cánido help more people to find out to solve their situation.
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