Understanding Deeds of Assignment & subject access rights in debt collection and debt sales

Useful information about your debt to be aware of:

  • If your debt is collected by another company, the original lender still owns it.

  • If your debt is sold, another company (a "debt purchaser") now has the right to collect it.

  • You do not have a right to see a Deed of Assignment (DOA).

  • If you ask for a DOA and you do not receive one, this does not mean the debt is unenforceable or doesn’t have to be paid.

  • It also does not mean your debt will be written off, or your account closed.
CSA Man White

Why we are giving you this information

The Credit Services Association (CSA) - the trade body representing the UK’s debt purchasing and debt collection industry - is aware of a trend in consumers being misadvised that they are entitled to receive a Deed of Assignment (DOA) when their debt is sold to a debt purchaser, or passed to a debt collection firm.

This information is incorrect and can be harmful. It may lead to unnecessary legal costs for consumers, wasted court and regulatory resources, and prolonged financial difficulties for people in debt.

In response to this and following conversations with the Information Commissioner’s Office (ICO) on rights of access, we want to provide clarity on what a DOA is, what it isn’t, and what consumers should expect when their debt is sold.
Useful to know - Regulation
The Information Commissioner’s Office is the independent regulatory body for data protection and information rights in the UK.
Find out more about the ICO

What is a Deed of Assignment?

A Deed of Assignment (DOA) is a legal document used when one company sells a debt to another company. It confirms the sale of a group of debts from one business to another.

A DOA is not created when a creditor instructs a DCA to collect debts on their behalf - it is only created when debts are sold.

Note: this article uses ‘DOA’ or ‘Deed of Assignment’ to mean any written agreement between the creditor and a debt purchaser selling the rights to recover debt. The person who owes the debt is not a party to this agreement.

DOAs are commercial agreements usually used to transfer large volumes of debt from a creditor to a debt purchaser. Because of this, information about individual consumers in DOAs is extremely limited: usually only enough information to identify the debt will be shared.

Even if a DOA did include a name or account number, firms meet the right of access by providing only personal data, not the entire document. This is done through what is known as redaction or extraction.
Useful to know - Selling debt
  • Debt is money that a person borrows and must pay back.
  • Debt sale happens when one company (a lender/creditor) chooses to sell a debt to another company (a debt purchaser).
  • Before a debt is sold, the original lender/creditor has the right to recover the money owed. When the debt is sold the debt purchaser has the right to recover the money owed.
  • A debt collection agency (DCA) has the right to collect the debt and return the money to the creditor or debt purchaser.

Subject Access Rights (SARs)

Some consumers are being advised to request DOAs using a Subject Access Request (also known as the “right of access”) under the UK GDPR, in the belief this may help challenge or avoid repaying a debt. This advice usually consists of a number of incorrect claims, including:

  • Myth: A firm must provide a DOA if it is requested.

  • Myth: Refusal to provide a DOA means the debt does not have to be repaid.

  • Myth: Refusal to provide a DOA means their debt is unenforceable.

  • Myth: Consumers should complain to the ICO or take civil action in order to access the entire DOA document.

These claims are incorrect and can be misleading for consumers

The right of access allows a person to access and obtain copies of their personal data that a firm holds about them, subject to certain limitations and exemptions. It does not give a person the right to receive full copies of every document a company holds.

The Information Commissioner’s Office (ICO) has clarified this in its guidance to consumers, explaining:

“Organisations don’t have to give you full copies of the original documents you have requested. You can only get your personal information that’s contained in the documents. This might mean you get new documents that only contain your information, or original documents with certain information removed or edited out”

ICO, Getting a response to your subject access request.

When consumers are given incorrect or misleading advice about DOAs, they may make complaints or seek legal action, however this will not change the outcome; their debts will still be owed and can still be pursued by the company (the debt purchaser) who now owns their debt.
Useful to know - Your data
Personal data is information that relates to an identifiable individual. Further information from the ICO can be found here:
What is personal data? | ICO

Informing customers about assignment

When a debt is sold, consumers will be sent a notice of the assignment. This simply explains that their debt has been sold and to which company. It is separate from a Deed of Assignment. The enforceability of a debt does not depend on receiving a DOA.

 

Regulated sources for advice

Any source suggesting consumers are entitled to receive DOAs is likely to mislead and will not change the position: the debt will remain owed, and the company that owns the right to this money can continue to pursue it.

Consumers should rely on regulated, accountable sources for advice. Free independent debt advice is available via GOV.UK and at Money Helper. The Credit Services Association offers guidance on dealing with debt collection, and the Financial Conduct Authority (FCA) provides information on accessing free debt advice. Consumers are also encouraged to speak to the companies they owe money to, who will explain the process and answer any questions.

It is important to be cautious about advice from unregulated sources, such as online forums or content created by Generative AI tools, such as ChatGPT or Microsoft Copilot. While they might be well-intentioned, information can be factually incorrect and may not provide realistic or helpful solutions to dealing with debt. 

 

The ICO is the UK regulator for data protection, and supports the general information shared here about the right of access. The ICO’s purpose is to uphold information rights in the public interest. The ICO does not regulate consumer credit or financial services, and nothing in this article should be taken as the ICO giving a view on issues that fall outside its remit.