[lbo-talk] Selling debt & informing debtors

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Wed Aug 19 21:04:31 PDT 2009


Troy asks:


> When a lender sells debt to a third party that then
> securitizes it and further sells it on, is the debtor
> informed of these changes in the credit relationship?

What do you mean by "changes in the credit relationship" ...?

If I loan you $10 today and you agree to give me $1/month for the next year and in month #3 I tell you to instead of sending the money to me that you should send it to my bookie, is there a change in our credit relationship? If the bookie uses the $1 you send to finance a revolution in a jungle somewhere, are you to be told?

What exactly is the credit relationship you're talking about?

/jordan



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