Patricia Pearl - Small Claims Procedure - A Practical Guide


An excellent guide for the layperson in how to use the County Court - a must if you are intending to start a claim.

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  1. #1
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    Default What do DCAs pay for a debt?

    Apologies if my threads are peppering the board like a rash but I have all kinds of questions and I don't want to hijack other people's threads.

    I've been wondering what percentage of the original balance is paid by DCAs to the original creditor, to purchase a debt? Is there a set percentage or does it vary?

    Reason I'm asking is that, if it ever came to me wanting to settle a debt with a DCAicon (unlikely as things are now ), I'd want to have some idea of a realistic figure to put forward.

    If say, the original debt was 10K, would the DCA have paid 8K, 5K or even 2K?

    My instinct would be to try and settle a debt like that for say 3K if I could. Does that ever happen?

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  2. #2
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    Default Re: What do DCAs pay for a debt?

    If say, the original debt was 10K, would the DCAicon have paid 8K, 5K or even 2K?
    More likely 1K. They usually pay around 10% of the value of an unsecured debt.


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    Default Re: What do DCAs pay for a debt?

    Hmmm...interesting.


  4. #4
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    Default Re: What do DCAs pay for a debt?

    It does beg the question - why on earth do the banks not make the debtor the offer of a Full and finalicon at 10% rather than selling it on to these vultures?

    Very annoying really. Don't quite understand the logic.....if there is any that is


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    Default Re: What do DCAs pay for a debt?

    Yeah that's a very good point. They probably sell it on to the bloodsuckers to punish us for being bad debtors.


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    Default Re: What do DCAs pay for a debt?

    It does beg the question - why on earth do the banks not make the debtor the offer of a Full and finalicon at 10% rather than selling it on to these vultures?
    Because there would be no tax benefit to the bank in doing so.


  7. #7
    Basic Account Holder lemma1968 Novitiate

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    Default Re: What do DCAs pay for a debt?

    Cos they can write it off as a bad debt if they sell it to the DCAicon's?

    Can't they still write it off as a partial bad debt if they settle to us? Tax is not my strong point as my accountants can attest to!!!!


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    Default Re: What do DCAs pay for a debt?

    Logic

    Banks and DCAs don't have logic

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    BB 13 - DCAs/banks and solicitors 0.


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    Default Re: What do DCAs pay for a debt?

    Quote Originally Posted by lemma1968 View Post
    It does beg the question - why on earth do the banks not make the debtor the offer of a Full and finalicon at 10% rather than selling it on to these vultures?

    Very annoying really. Don't quite understand the logic.....if there is any that is
    Firstly, they don't want to make it easy on people who don't fulfill their commitments...

    and, secondly, because the Tax Man will enable them to write off a substantial amount of the debt against profit, which wouldn't happen if they were to do the same thing to their client.

    Don't forget... many of the banks OWN DCAicon's as part of their business strategy.

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    Default Re: What do DCAs pay for a debt?

    The tax break is bigger if they writing off the whole of the debt........oops got there to late. Tomterm8's given you a fuller answer.

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    Default Re: What do DCAs pay for a debt?

    Convenient loophole, 'sepecially for the ones that do it 'in-house'

    Maybe the little 'ole Tax man should be looking into that

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    If you do PM, make sure to include a link to your thread as I don't give out advice in private

    BB 13 - DCAs/banks and solicitors 0.


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  12. #12
    Basic Account Holder lemma1968 Novitiate

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    Default Re: What do DCAs pay for a debt?

    yes, a whole industry has been built up the back of the misery of others.
    Some of the trolls that scour this site should look to their own corners before they go about criticising us and questioning our morality

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  13. #13
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    Default Re: What do DCAs pay for a debt?

    Absolutely right. It's all a big rip off and another way of profiteering for Banks. Ironically, there's money to made from debts!!


    Settling your debts

    That site is obviously very USA but take alook around, it makes a very interesting read considering many of our own DCAicon's/Purchasers are US based or influenced.


  14. #14
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    Default Re: What do DCAs pay for a debt?

    In their preliminary annual report (December 2006) Cattells, owner of Lewis Group, CL Finance etc. announced the purchase of some 80 million of unsecured debt for around 15% of the face value.Vandermerwe


  15. #15
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    Default Re: What do DCAs pay for a debt?

    My personal experience.
    The DCAs buy at various risk categories.
    As you say usually around the 10% mark.
    I'm dealing with an alleged debt for a third party, CCA'd the DCAicon and they sent background paperwork instead of the agreement. It showed they paid 2%!
    Admittedly this was an old debt almost statute barredicon with very little chance of contact/payment from the debtor.
    Bottom feeders indeed


  16. #16
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    Default Re: What do DCAs pay for a debt?

    That's interesting dom2. Can you scan the papers to the site - I'm sure they would make interesting reading. Wonder if the figures quoted by Cattell related to GE Money/Capital Bank who were recently dumped by Harrods? Vandermerwe


  17. #17
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    Default Re: What do DCAs pay for a debt?

    Hi
    Sorry but I don't want to uploadicon anything until it's sorted. After that I'll send all stuff such as this to the website.

    It's simply a computer print out headed creditsolve - live; legal report.
    Gives the date acquired and in line5 says ....
    P/ - 0.0249

    Oh, and now they confirm that there's no copy of agreement.

    It seems to me that many contributors on this site are in a similar position. Nice to know just how little the DCAs pay for high risk lots.


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    Default if a CREDITOR sells a debt & claims tax relief when in default is it legal?

    if a CREDITOR sells a debt & claims tax relief when in default is it legal?

    imagine a creditor assigns/sells an alleged debt whilst in default of the CCAct 1978 section 78 and then claims tax relief ----- has anyone thought of writing to the tax people to inform them that the account in question was in default [of the CCAct 1978 section 78 ] and consequently this is an illegal action ??

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  19. #19
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    Default Re: if a CREDITOR sells a debt & claims tax relief when in default is it legal?

    Quote Originally Posted by FANTASY CHARGES View Post
    if a CREDITOR sells a debt & claims tax relief when in default is it legal?

    imagine a creditor assigns/sells an alleged debt whilst in default of the CCAct 1978 section 78 and then claims tax relief ----- has anyone thought of writing to the tax people to inform them that the account in question was in default [of the CCAct 1978 section 78 ] and consequently this is an illegal action ??

    Why would it be illegal?
    All the default ascertains is that the debt is unenforceable, it still exists.


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    Default Re: if a CREDITOR sells a debt & claims tax relief when in default is it legal?

    Quote Originally Posted by gizmo111 View Post
    Why would it be illegal?
    All the default ascertains is that the debt is unenforceable, it still exists.
    This is an interesting point.

    If the total amount of the debt to be written off is made up of illegal charges and interesticon that are not contractually agreed (e.g. through the clear absence of a CCA) then I would suggest that claiming tax write-off on the total balance MAY be interpreted as theft/obtaining money by deception.

    The analogy would be a company writing off bad debt against its corporation tax, knowing that the actual amount is almost certainly less. So for example, the sum defaulted for a credit card is 8 K and the OC has added say 2 K in interest/charges (now 10 K) and sold the bad debt for 1 K they would be claiming tax relief on 9 K. The 9 K would be incorrect by virtue of the charges and interest especially if it was know that no such agreement exists between the parties. Hence they would be obtaining tax relief on a higher amount = deception/theft.



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