Loan Sales: Am I affected?
Is your debt being sold?
You will have noticed a lot of stories recently in relation to the sale of loans by Banks to private investment funds and other bidders (Project Aran, Project Achill, Project Eagle, Project This, Project That – its all getting very complicated!). You may have even received a letter in the post from your lender informing you that your loan has been sold. So how will you know if your loan is sold and what are the implications?
How do I know if my loan is sold?
If your loan is sold you will be sent a transfer notice informing you of this development. The new owner of your loan must notify you within 30 days of the effective transfer date.
So what does this mean?
Lenders sell loans to clear their credit allowing them to take on further loans and recently sales of portfolios in the billions have been made. The implication of this is dependent on your situation and who has taken on your loan. If for example your business loan is sold you may risk losing control of your business.
One thing that is guaranteed is that another lender will be handling your payments, managing your accounts and also answering any questions you have about your agreement. You will have no choice in who is taking over your account and it is advisable to speak to a solicitor about your situation to get advice and plan what you will be doing going forward.
Speak to an expert
MKB Law Financial has been set up to help individuals and businesses who face these types of issues with their banks and other institutions. If you have received a letter from your bank advising of a change in the ownership of your loan we would advise you to contact us to discuss your circumstances.
Call: 028 9024 2450