Are CCAs really legally creditors?

[shane5408]

Hi,

 

The CCA 1974 defines creditor as

 

“creditor ” means the person providing credit under a consumer credit agreement or the person to whom his rights and duties under the agreement have passed by assignment or operation of law, and in relation to a prospective consumer credit agreement, includes the prospective creditor;

[shane5408]

32.2.4. Assignment of debts

 

Assignment is a process whereby debts are sold on to another organisation, and is common practice within the industry.

For an assignment of a debt to be legally effective, it is necessary to assign both the rights and the responsibilities of the creditor under the agreement.

Partial assignment which, in effect, assigns the right to enforce but not the associated responsibilities will be invalid and will preclude the assignee from enforcing the debt.

There are two types of deed of assignment - equitable and absolute. The first assigns the right to pursue the debt to the assignee but not the obligation of the OC. The second assigns both the rights and obligations of the assignor to the assignee. However, in order for this to be legally binding you as the debtor would have to give your consent to such an assignment.

 

If the notice includes an amount demanded that is incorrect it renders the notice legally invalid (e.g. unlawful charges or DCA admin/collection charges).

Even if the amount doesn't include charges but is misstated it is still invalid.

If the date is incorrect it is legally invalid (i.e. does not tie in with the deed of assignment - the execution of assignment should be the same as the date shown on the notice).

The case that supports this is W.F.Harrison & Co Ltd v Burke [1956] 1 WLR 419

 

some of the above has been reproduced from earlier posts on different threads by Rory

 

regards,

shane

[shane5408]

My take on bought debts from my experience is that they're what the loan company sees as hopeless cases so they sell them on for 10, maybe 5% and claim from the underwriters

 

Hiya,

 

Could you elaborate a little more on this please, I assume you're talking about Original Creditors 'charging off' what they deem bad debts, selling them to DCA's and then getting some sort of tax relief for it Are you saying they also are fully insured in instances where they cannot collect the debt and get a payout?

 

kind regards,

shane