Skip to main content
Phone Icon Call free today: 0800 043 1320

Write off debts you can't afford

Find out if you're eligible now.

Please tell us the total sum of your debt
When considering your debt level remember to include the following commonly missed debts: HMRC,Rent arrears, Bailiff inforcements and council Tax.
Less than £6,000
£6,000 - £20,000
More than £25,000
How many people do you owe money to?
Notifying of this will allow us to tailor our advice to ensure you receive individual support.
Less than 2
2 or more
What type of property do you live in?
Discussing your living arrangements is important to ensure we provide appropriate advice and allows us to work to ensure your property is not at risk.
Private Rented
Living with Parents
Where do you live?
Telling us your location allows us to offer information about the debt solutions and help available in your area.
Northern Ireland


Notice of Assignment: Debt Terms explained


A creditors’ main goal is to lend you money and to collect it, so they’re not the biggest fan of chasing those who fall into arrears. As such, sometimes they’ll pass arrears on to other companies.


A creditors’ main goal is to lend you money and to collect it, so they’re not the biggest fan of chasing those who fall into arrears. As such, sometimes they’ll pass arrears on to other companies.

Being in debt can get confusing as it is, but especially so if a situation arises where you owe money to your mortgage lender, then a letter comes through your door from a company you’ve never heard of asking you to make payments to them instead.

This is what’s known as a Notice of Assignment (NOA). They are sent to inform you that a third party has bought a debt that you owe from the company you borrowed it from.

If your debt is assigned to a new owner, they will then take over the previous company’s responsibility for debt collection and will sometimes hire a collection agency to work on their behalf.

Why choose Carrington Dean?

  • Write off unsecured debts over £5,000.
  • Stop interest and charges soaring.
  • Reduced payments from £85 per month.

Types of assignment

There are two types of assignment that a creditor can make – Legal and equitable.

Both of them fall under the Law of Property Act 1925 and both require the creditor to notify you of the change in writing.

It also isn’t possible to assign only part of a debt to a third party. If a creditor is ‘selling’ your debt, they have to sell the debt as a whole, and that debt will become one of the purchasing company’s obligations.

We set out the differences between legal and equitable assignments below.


A legal assignment gives the purchasing party the power to enforce the debt. You will also then make payments to this company instead of the original creditor.


When a debt goes through an equitable assignment, it is only the amount owed that is transferred. In these instances, the purchasing company cannot enforce the debt and the original creditor will still retain their original rights and responsibilities.

Why do creditors sell debts?

One of the most common questions asked when a notice of assignment is received is why? Why have they sold it and how can they?

The answer is that is it is actually perfectly legal for them to sell your debt to another company.

When you sign a credit agreement there will have been a clause within the fine print. This will have stated that they are able to assign their rights to a third party.

As you have signed for this, they do not need to ask your permission to ‘sell’ the debt and you are unfortunately unable to dispute it.

The only exception to this rule is if the lender pledges to the Standards of Lending Practice and you have given evidence of mental health issues previously. In these instances, your debt should not have been sold and you should seek advice on this.

What does a notice of assignment mean for you?

If a creditor passes one of your debts to a third party, they will notify the credit reference agencies that they are now responsible for the collection. The previous company’s name will be removed from your credit file and that any defaults will also be registered in their name.

Many people often find that having a debt being passed to a third party is a blessing in disguise. The new company might be easier to deal with or be more flexible. They may offer to freeze interest on your debts, for example, giving you more scope to repay what you owe more quickly.

Ultimately, getting your debt paid off is in both yours and the creditors best interests. Agreeing to a manageable payment plan gives you some breathing space and it can often mean they won’t need to take any further action against you.

It’s also worth noting that this also does not reset the six-year period for the debt to become statute-barred and debts that are already in this category will remain as such.

How we helped Yvonne

“I never thought I’d be in this situation in a million years but knowing that I had somewhere to turn for support and the arrangement has been an absolute life saver. It has made a huge difference to our financial situation."

Yvonne, Wishaw

Get help like Yvonne did

Assignment and debt collection agencies

Sometimes, the purchasing company will employ a debt collection agency to act on their behalf or the debt will be purchased by an agency themselves They will take over the full rights to the debt and attempt to collect it from you in full.

As such, they will contact you by letter, phone calls, texts or emails. It also means that they can take further action against you should you continue to default on the account.

However, unless it is stated otherwise, debt collection agencies only work on behalf of a company. The purchasing company will still own the debt, although some collection agencies do deal in debt purchasing also.

It’s also important to remember that although they can contact you for payment, they still have to abide by creditor etiquette. They cannot pretend to have certain legal powers or lie to you, break data protection laws or search for you on social media.

You’ll likely find that debt collection agencies are often open to negotiations, so it is always best to contact them as soon as possible when they contact you for payment.

You could write off up to 70% of your unsecured debt today

Assignment and Debt Solutions

If you are already in some form of debt solution such as an IVA, Trust Deed or a DMP that is run privately by a company, you must notify the company running your agreement.

They will make the necessary updates to their records and contact the company to arrange payment to the new company.

If you are managing your own debts, you will need to cancel any payment to the original company and set up a new one to the purchasing company or debt collection agency. In this instance, you may be asked to show them an up to date state of affairs in case any changes need to be made.

If you’re receiving notices of assignment and struggling with debt collection, call us today. A qualified adviser will be on hand to give you free confidential advice and help you find the right solution for your debts.


Latest Articles


Can you get a CCJ in Scotland?

When a company you owe money to pursues you for a debt in England, Northern Ireland or Wales, a common course of acti­­on is for them to apply to the courts to impose a CCJ, ...


What is a Scottish Decree?

When you’re struggling with debts, you may have come across a decree, and it’s something we’re asked about often. That’s why we thought we’d shed some light on the things you need to know about ...


What is a Moratorium?

Are you thinking of applying for a debt solution such as a Trust Deed or Debt Arrangement Scheme (DAS), but need more time to mull it over and are worried about what your creditors are ...