How do i pay Loan?

[MatB]

Hi All

3 years ago, the company i got a loan from went into liquidation. After doing loads of searching, i found out the company director had set up a new loan company, so i emailed him directly and set up my repayments as normal to the new company.
Fast-forward to the present and my last 2 monthly payments to this loan company have been returned to me by my bank saying the company no longer exists. After ive looked on companies house it says they've gone into liquidation again but this time i cant find any contact details of the company anywhere. How do i make repayments to a company that doesn't exist any more?
Do i have to wait until somebody gets in touch with me? Maybe somebody who bought the debt?
I don't want to get into any bother, or it effects my credit rating.

Many thanks in advance for your help

 

[Mark T Jones]

If you've attempted to pay, it is their responsibility to inform you of what will happen.

It's likely that the terms of your loan gives them the right to assign the debt, but it's not automatic neither is it a given that the new company will have the right to collect.

 

[Chris Ashdown]

Why did you just send money to the new company, did they actually own the debt

No doubt someone may contact you but you need to make sure they have proof the debt is actually legally theirs to claim

 

[MOIC]

3 years ago, the company i got a loan from went into liquidation. After doing loads of searching, i found out the company director had set up a new loan company, so i emailed him directly and set up my repayments as normal to the new company.

Was you asked to make payments to the new company??

 

[MatB]

Why did you just send money to the new company, did they actually own the debt

No doubt someone may contact you but you need to make sure they have proof the debt is actually legally theirs to claim

Yes, they still owned the debt. I made sure of that before i continued making repayments. It did seem strange that the same company director could go into liquidation, then start up a new business and carry on as normal.
Hopefully they contact me soon.

 

[Mark T Jones]

Yes, they still owned the debt. I made sure of that before i continued making repayments. It did seem strange that the same company director could go into liquidation, then start up a new business and carry on as normal.
Hopefully they contact me soon.

Why are you hoping they contact you?

At this moment it's not clear if you owe any money

 

[Gyumri]

If the first company went into liquidation then how can there be any legal obligation to make repayments to the second company rather than to the liquidator of the first company?

 

[Mark T Jones]

If the first company went into liquidation then how can there be any legal obligation to make repayments to the second company rather than to the liquidator of the first company?

It can be assigned, but I'm getting the sense things here aren't entirely 'by the book'.

 

[Gyumri]

It can be assigned, but I'm getting the sense things here aren't entirely 'by the book'.

I am sure the liquidator would have a few questions about an asset being assigned to another company by the former director. Still it's refreshing to see somebody actually trying to make efforts to repay a loan in this climate.

 

[japancool]

I made sure of that before i continued making repayments

Just out of interest, how did you do this?

 

[Mark T Jones]

I am sure the liquidator would have a few questions about an asset being assigned to another company by the former director. Still it's refreshing to see somebody actually trying to make efforts to repay a loan in this climate.

It's completely legal and normal if done properly.

 

[The Byre]

I personally owe several thousand to some company that has made no attempt to send an invoice or any communication whatsoever. As this was for an online ad I saw somewhere that has long since vanished, I could I suppose make great efforts to trace these people - but as that was about a year ago, that's their look-out!

I do not chase people in order to pay them. It is up to them to facilitate the payment of the debt by letter or email. They have my address, tel no. and email. An employee of the company even delivered the goods to us. He was supposed to be carrying an invoice - he was not.

In the OP's case, he/she was a fool. Sorry, but that is the blunt truth - and here's why -

In all likelihood, you still owe the balance that was due when the first company was liquidated. You owed the money to the first company and paying some money to some other company did not necessarily alter that fact or the balance owed. Whoever owns the assets of the first company - and that may not be the owner of the second company but the creditors of the first company - may easily be the owner of that debt.

Your debt only becomes an asset of the second company if the assets were sold to the second company and properly transferred. As you had to chase them, an orderly transfer of assets does not sound all too likely!

It's completely legal and normal if done properly.

Considering the sloppiness of the director in not informing his clients who to pay or how to pay, that is a very big IF!

 

[japancool]

You owed the money to the first company and paying some money to some other company did not necessarily alter that fact or the balance owed.

And if that's the case, it may have already impacted his credit rating. OP, I would recommend checking your credit file and seeing if the loan still shows there.

 

[Lisa Thomas]

You may actually still owe the original company that went into liquidation.

If the director failed to report the debt to the liquidator they will be unaware of it.

If correct, this means you owe the money to the original company and should get in touch with the liquidator.

If the liquidated company's debts were legally assigned to the Newco and Newco has been dissolved, then the money will be due to the Treasury Solicitor/Bona Vacantia.

Bona Vacantia

‘Bona Vacantia’ means vacant goods and is the name given to ownerless property, which by law passes to the Crown. The Treasury Solicitor acts for the Crown to administer the estates of people who die intestate (without a Will) and without known kin (entitled blood relatives) and collect the...

www.gov.uk