Has anybody at any stage challenged the Sale of Debts to a DCA,

if the seller is prepared to sell a debt at a specific price why should the debtor not be offered to buy the debt at this price first????

I am aware most debts are sold in bulk and that there are different layers involved such as a debt being sold where payments are being made

,then another example debts sold where no payments have been made for a period of time they attract different selling prices,JUST A THOUGHT

FS

you mean a debt purchaser

DCA is just a collector for an owner

this is an old question = never seen an answer to it?

As the original debtor was in a position to deal with the debt but didnt there is no incentive to either cancel the debt or to accept an offer from them.

The selling of a debt happens because it is a bad debt, it creates a hit on the accounts of the company but selling it raises some money.

The company buying it know that they have little chance of collecting all of the debt so only pay what they see as being a fair bet on collecting some of the value of the debts purchased.

it is a bit like insurance actuaries looking at life policies,

they know the previous form of the person and use this info to calculate their risks.

No incentive for the original creditor to accept a low redemption amount from the debtor or everyone would just not pay their dues and expect to be offered freedom for 10% of what they owe.

Anyway, it is not a dca as such who buy debts, they just chase them for other people.

Dont confuse the 2 different markets.

Sorry I meant Debt Purchaser, not DCA,

Thanks for your comments

FS

Sorry I meant Debt Purchaser, not DCA,

 

Thanks for your comments

 

FS

One and the same in reality but a few are bigger than others which enable them to buy debts..but there still DCAs...because they will never be creditors in their own right.....

Andy

Question. If both parties do not send an Assignment Letter, has it any Legal Standing,or is this another Debt Purchaser,excuse I dont have to supply an Assignment

thanks

FS

the seller of the debt has to send you a letter of assignment saying who now owns the debt. Usually the debt buyer sends the letter using the original creditors letterhead as they tend to buy a parcel of debts.

What many people do is ask for a copy of the deed of assignment, which you are not entitled to see as that is a B2B confidential matter.

No letter of assignment and as far as the debtor is concerned the debt is still to the original creditor.

Yes, the NOA is almost always in the same envelope of the assignee, although printed with different letterhead, the paper and font is the same.

However, if the DCA refers to ''their client'' then it hasn't been sold on, and payments should still go to the OC, if they do indeed merit paying.

Eric.......Thanks for your reply,very helpful

FS

Bazooka ditto thanks for the reply

FS