The sale of an individual's debt by receipt is a fairly simple procedure that requires only the drawing up of an appropriate contract / agreement (cession). Basically, lenders sell such debts to collection agencies, less often to banks, third-party organizations.
It is not uncommon for a person to give his friend or relative a certain amount of money against a receipt, which indicates the terms of the return and the periods of payments. If the borrower pays the debts in bad faith and the delay only increases, there is a way to sue the debtor or sell the debt to third parties.
The procedure for selling debt is simple. This is mainly done by collection agencies. Then the lender gets money quickly in his hands, and the collectors are already "knocking out" the money in their own way.
To sell the debt of an individual, it is necessary to conclude an assignment, or otherwise an agreement on the assignment of the right of claim between the lender and the collection agency. An example of such an agreement can be found on the collectors' websites. It is worth remembering that in the agreement of assignment of the right of claim, the conditions for the payment of obligations that were indicated in the receipt (that is, the terms of payments, interest, the fixed amount of payments) cannot be changed.
The creditor can sell the debt to the collectors at any stage of the collection of the late payment, even if the collection goes through the court.
According to the law, the consent of the debtor is not required when transferring a debt. However, either the collector or the lender is required to give written notice of the transfer of the debt. In this case, it is necessary to attach an agreement on the assignment of the right of claim, according to which the debt was transferred. Until the provision of evidence of the transfer of the right to claim the debt, he is not obliged to pay the collectors.
There is one more nuance. If the promissory note was notarized, then the assignment agreement must also be certified by a notary.
In general, not only collectors, but also any other individual, bank, or third-party organization can redeem the debt of an individual. The main thing is to understand what benefit the “reseller” of debt will have. The greater the amount of debt and the lower the cost of the debt upon transfer of the right of claim, the greater the chances of foreclosure. Usually the buyback price reaches 10-15% of the debt. Sometimes you can bargain for conditions up to 50%, and sometimes up to 80%. It depends on several factors:
- the borrower's solvency;
- the amount owed;
- the presence or absence of a writ of execution;
- collateral for the loan;
- availability of other loans.
Lenders sell individual debt on rare occasions. On the one hand, this is due to the fact that such debts are sold at a price that is lower than the debt. On the other hand, the debt can be repaid through the courts. To do this, the indebted borrower is sent claims in writing, and then the procedure for going through the courts follows.
Basically, the creditor transfers the debt to third parties when he no longer expects to return the debt.
