Thread: DCAs and settlements, how much they pay to buy, how much you pay to settle

I wanted to throw up some ideas that have come out of my complaints with the fos in which most of my refunds have been offered to a DCA, despite no s.78 compliance by DCA and the DCA never being a part of the complaint. Some members agree that i am not entitled to this refund and the FOS is correct.

I'm talking about how much the DCA pay for an account and how much they can ask for. I may be able to use these refunds to my advantage somehow. I could also use the FOS decisions to support my assertions.

In a few complaints, i've had the bank keep the money towards the amount they wrote off, both when it was sold to a DCA and when i settled with part payment. The FOS, as always, have agreed with this. This would seem to indicate that this written off amount can resurface any time they like, by the use of clever accounting, even though it has had tax relief used on it as a loss.

Do i have a right to go to a DCA and ask for the amount they paid as the payment due to them? This is because the rest of it was written off by the bank, but may be brought up again by them in future. The profit for the DCA should be the interest they are entitled to charge, if stipulated within the agreement. If they have no valid agreement, they cannot charge interest. We'll leave aside whether they are entitled to anything because it seems most people think they are and CCA requests seem to be useless.

This would mean that the DCA have paid, E.G. £100 for a £1,000 account, and if the bank has refunded them my £600 in charges, or more with interest. DCA can keep £100 and pay me the remaining £500 as i would neither owe them anything or the bank. Does this make sense?

Me settling and the DCA buying the account are the same thing, E.G I pay £100 to settle a £1,000 account, DCA pays £100 to buy a £1,000 account.

Yet, when the DCA makes a part payment (the settler) and i claim charges, they are paid to the DCA. When i make a part payment (the settler) and i claim charges, the bank keeps the money towards the right off (£900). This means the DCA is enriched unjustly because, by the same reasoning, i am deemed not to be entitled to the same money. Does this also make sense? It would seem rules are different for companies than for consumers.

Comments please. I have now lost over £12,000 of my charges refunds to DCAs.

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anyone? this concerns all of us.

If while you had the cc account the company added say £30 charges from time to time, you would be then paying interest on it, but you never actually paid the £30. If subsequently you are awarded these charges back, they should go to the OC, but the interest you were charged on them should go to you, if this makes sense (its a very complicated subject, because all this was only ever a paper exercise), no money ever changed hands as it were.

in my case, charges, interest, PPI, all are being paid to the DCA.

in one case, i have settled with the DCA before claiming, sent proof to the bank and fos, and still they say the decision is fair because i never paid the bank and that my matter with the DCA is separate, yet they've made the DCA a part of the complaint by sending them my refund on an account which has a balance of £0 at the bank and £0 at the DCA. This is mad! They expect me to chase the DCA and ask for my own money back.

again, this is an example of following what the bank says. The banks and FOS don't seem to check if there's anything owing to the DCA, they automatically send them the payment.

Yes i see, i have no faith in these regulatory authorities after reading threads on here, and obviously if the bank has to pay anyone they are naturally going to pay it to the DCA instead of you (if they think they can.
I honestly don't see how you can move forward on this if you have settled your debt, then claimed back charges, won these and then don't get your money back.
Mindboggling, i hope others will have some input here

another complaint that is also now being reviewed at the fos ....

the Ombudsman has said that even if it is proven that the DCA is not legally entitled to receive any payment, then still the bank's offer to pay them is fair because the bank had an unpaid account. The fact that they sold it is 'irrelevant'. But to me (and the law) it's very relevant because it means the account was satisfied and legally assigned so the bank has no balance owing. The fact that it's unenforceable is between me and the DCA.

Same Ombudsman who made the above statement, i.e. even if i have cleared the account with DCA, the bank can still send them my money.

Can i force the fos to make the DCA a part of the complaint so that i can request documents from them, such as how much they paid for the account, a full statement to date and evidence as to why they should get the refund. Is this a right i have for a fair and reasonable decision?

I have asked this of the FOS since they're paying them my money but nothing yet. I've said the DCA should have to work for a cross claim.