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Northern Rock’S Bad Loans Bought Up By Tough Debt Collector

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A debt collection business that takes non-payers to court has emerged as the buyer of £450 million of Northern Rock’s bad loans.

Marlin Financial, which describes itself as the UK’s “leading litigation specialist debt buyer”, has won the auction to purchase the book of unsecured loans from UK Asset Resolution. The government agency is winding down Northern Rock and Bradford & Bingley after their nationalisation.

Marlin is understood to have paid about £100 million for the loans, a deep discount to their original value. Among the portfolio that Marlin is taking on are people who have not made payments for years and some cases of bankruptcy.

The emergence of Marlin as the buyer of the bad loans may surprise observers. The company’s business model is to seek out books of loans where it believes it can analyse which individuals could pay but are not paying. Then it threatens legal action.

Cuddly public-owned bank doesn't have to do the dirty work. Nasty private-owned bank to repossess instead.

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25p in the pound sounds like a lot for unsecured crap, some of it can't be that bad. Which I guess are the ones they will be going after. I'd be interested to know their approach, probably have a hard time finding some of the borrowers of the worst performing loans.

Edited by cheeznbreed

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it is a criminal offence to chase a bankrupt for money brought into the bankruptcy.

Of course, there is a myth about unsecured loans...and that is that they will remain so.

Edited by Bloo Loo

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Do you mean that charging orders will be issued to those with assets? If so, why didn't UKAR do this?

You dont even need a charging order....all that does is add the creditor as having a piece of the asset sale action.

You need a court judgement, then they can go for forced sale of the assets (cars, TVs etc), attachment to earnings etc etc...all of which make the "unsecured" debt a pretty nasty anchor on your life.

Bankruptcy trumps it all though.

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You dont even need a charging order....all that does is add the creditor as having a piece of the asset sale action.

You need a court judgement, then they can go for forced sale of the assets (cars, TVs etc), attachment to earnings etc etc...all of which make the "unsecured" debt a pretty nasty anchor on your life.

Bankruptcy trumps it all though.

Cheers, so the question remains regarding UKAR's failure to pursue all available options. 25p in the pound surely suggests that the buyers are confident of getting a good fraction back from a significant portion of the book. If they get half back from three-quarters of the book that's a 50% gross return, but doubtless there will be plenty of costs.

Maybe by 'bankruptcy' they mean people who have previously been bankrupt previously but were discharged by the time they took on the current borrowings.

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Cheers, so the question remains regarding UKAR's failure to pursue all available options. 25p in the pound surely suggests that the buyers are confident of getting a good fraction back from a significant portion of the book. If they get half back from three-quarters of the book that's a 50% gross return, but doubtless there will be plenty of costs.

Maybe by 'bankruptcy' they mean people who have previously been bankrupt previously but were discharged by the time they took on the current borrowings.

these debt buyers are ruthless...

think bailiffs, think calls early in the morning, think deep voice on the phone demanding payment. They will fly close to but not quite to harrassment.

They will also try very hard on those looking at Statute Bar as an escape....all they need is an acknowledgement of the debt before the 6 years passes ( 12 years for a property debt) for a fresh 6 years to start ticking by.

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these debt buyers are ruthless...

think bailiffs, think calls early in the morning, think deep voice on the phone demanding payment. They will fly close to but not quite to harrassment.

They will also try very hard on those looking at Statute Bar as an escape....all they need is an acknowledgement of the debt before the 6 years passes ( 12 years for a property debt) for a fresh 6 years to start ticking by.

Sure, but UKAR could do likewise. Are taxpayers supposed to take the collective hit because UKAR didn't want to force some people to repay debts via the courts? Pretty poor stuff if this is the case imo. Those that can pay should pay, and the rest can use their entitlement to go bankrupt.

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Guest eight

Cuddly public-owned bank doesn't have to do the dirty work. Nasty private-owned bank to repossess instead.

I thought only the original lender could legally pursue recovery through the courts? Selling the debt on is basically an admission of defeat?

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The BOUGHT bit is the get out of jail free card ( providing it is not a secured loan/debt) for those who know how to play the game, as the debtor has no contract (verbal or written) with the new owner, their contract was with the lender

So the aim of the game is not to enter into a contract with the new owner of the debt

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Sure, but UKAR could do likewise. Are taxpayers supposed to take the collective hit because UKAR didn't want to force some people to repay debts via the courts? Pretty poor stuff if this is the case imo. Those that can pay should pay, and the rest can use their entitlement to go bankrupt.

I agree...I would have thought a commission to a debt collector on success would have been the way forward, but as the poster said, Mortgage seller nice, debt collector UNPC.

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The BOUGHT bit is the get out of jail free card ( providing it is not a secured loan/debt) for those who know how to play the game, as the debtor has no contract (verbal or written) with the new owner, their contract was with the lender

So the aim of the game is not to enter into a contract with the new owner of the debt

Debt has to have a value so it can be sold by the issuer....thats how banking works, so its just about 100% that the contract includes to ability to sell on.

it may be that the issuer remains the payment centre though, as was the case for mortgages sold to MBS consolidators.

the owner of the debt is always entitled to collect though. He just has to prove to the Court that A the debt exists, B the defendant owes the money and C it owes it to him

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The BOUGHT bit is the get out of jail free card ( providing it is not a secured loan/debt) for those who know how to play the game, as the debtor has no contract (verbal or written) with the new owner, their contract was with the lender

So the aim of the game is not to enter into a contract with the new owner of the debt

If so how does this 'business model' differ from demanding money with menaces- what's to stop me phoning people early in the morning and demanding they pay me money?

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If so how does this 'business model' differ from demanding money with menaces- what's to stop me phoning people early in the morning and demanding they pay me money?

Presumably if they owe you it, have refused to give you it, and you don't cross the line into harrassment, then nothing is stopping you.

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NRK AM changed their policy on mortgage repos a few months ago.

They used to go for suspended court orders on condition the borrower repay the contractual instalments, never mind the arrears. Now they require arrears repayment within 60 months.

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NRK AM changed their policy on mortgage repos a few months ago.

They used to go for suspended court orders on condition the borrower repay the contractual instalments, never mind the arrears. Now they require arrears repayment within 60 months.

Interesting, care to expand on this? e.g. what ramifications does this have for a typical delinquent borrower or non-performing loan?

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If so how does this 'business model' differ from demanding money with menaces- what's to stop me phoning people early in the morning and demanding they pay me money?

Basically thats all they are doing ( there are rules about times of contact though in person or by phone) but they won't be adhered to and they will pester/harass the debtor, that is the whole game plan ,but the golden rule is to say absolutely nothing they need a acknowledgment of the debt verbal or written

If they get the acknowledgment the whole court system then comes into play county court /high court sheriff /attachment to earnings /third party debt orders

Edit to add bloo loo is right the easiest way out is bankruptcy

Edited by long time lurking

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Interesting, care to expand on this? e.g. what ramifications does this have for a typical delinquent borrower or non-performing loan?

Dunno.

It may be a government move to accelerate the wind down of NRK AM's portfolio.

It may be an attempt to cash in on the accelerating recovery - either the delinquents have all got tax credit jobs and can make increased payments, or HPI has advanced to the point where the losses on shortfall sales are acceptable for accounting purposes.

Another significant move recently was RBS repatriating properties it had transferred to a subsidiary after deliquency on interest rate swap contracts.

Something's going on with the government directed banks.

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Basically thats all they are doing ( there are rules about times of contact though in person or by phone) but they won't be adhered to and they will pester/harass the debtor, that is the whole game plan ,but the golden rule is to say absolutely nothing they need a acknowledgment of the debt verbal or written

If they get the acknowledgment the whole court system then comes into play county court /high court sheriff /attachment to earnings /third party debt orders

Edit to add bloo loo is right the easiest way out is bankruptcy

So if you denied the debt existed could you take them to court for demanding money with menaces- since they have zero legal footing for their behaviour?

I fairly certain that if I randomly started phoning someone demanding money from them I would be guilty of some kind of crime.

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Dunno.

It may be a government move to accelerate the wind down of NRK AM's portfolio.

It may be an attempt to cash in on the accelerating recovery - either the delinquents have all got tax credit jobs and can make increased payments, or HPI has advanced to the point where the losses on shortfall sales are acceptable for accounting purposes.

Another significant move recently was RBS repatriating properties it had transferred to a subsidiary after deliquency on interest rate swap contracts.

Something's going on with the government directed banks.

Thats interesting,perhaps Help to Buy is just a pump and dump scam with the taxpayer taking the hit,privatise the gains socialise the loss anyone

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Dunno.

It may be a government move to accelerate the wind down of NRK AM's portfolio.

It may be an attempt to cash in on the accelerating recovery - either the delinquents have all got tax credit jobs and can make increased payments, or HPI has advanced to the point where the losses on shortfall sales are acceptable for accounting purposes.

Another significant move recently was RBS repatriating properties it had transferred to a subsidiary after deliquency on interest rate swap contracts.

Something's going on with the government directed banks.

Thanks, hopefully the strategy will become more clear, but a move to start 'recognising' losses would be no bad thing imo.

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Basically thats all they are doing ( there are rules about times of contact though in person or by phone) but they won't be adhered to and they will pester/harass the debtor, that is the whole game plan ,but the golden rule is to say absolutely nothing they need a acknowledgment of the debt verbal or written

If they get the acknowledgment the whole court system then comes into play county court /high court sheriff /attachment to earnings /third party debt orders

Edit to add bloo loo is right the easiest way out is bankruptcy

I always thought you could sell on a debt and the buyer had the same rights to enforce as the original creditor. What happens when banks sell their loan books etc. I've got a feeling I've missed something fundamental here!

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So if you denied the debt existed could you take them to court for demanding money with menaces- since they have zero legal footing for their behaviour?

I fairly certain that if I randomly started phoning someone demanding money from them I would be guilty of some kind of crime.

The difference is they will not demanded money until they know they are talking to the debtor and they will always say they are acting on behalf of the lender (the ones that holds the contract) so that gives them the perceived right to persue the person in question

Yes you would probably be up for harassment/attempted extortion eventually as you would have no licence or association with anyone that was owed money under contract by the random person you demanded money from on many occasions

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The BOUGHT bit is the get out of jail free card ( providing it is not a secured loan/debt) for those who know how to play the game, as the debtor has no contract (verbal or written) with the new owner, their contract was with the lender

So the aim of the game is not to enter into a contract with the new owner of the debt

The OFT have it all wrong. They really should read this site more often. http://www.oft.gov.u...dit/oft1299.pdf

Sometimes the people you owe money to may sell your debt to a debt purchase business. If this happens, you should be told that your debt has been sold and the details of the business it has been sold to. The debt purchase business may contact you and ask you to pay the money that you owe an d/or they may pass details of your debt to a debt collection business.

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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