Inside a DCA!

[onthebrink]

Hi onthebrink can you tell me why a dca can put a default on a credit file 12months before a debt is assigned over from the oc, im puzzled

 

In MOST cases it is not the DCA that registers the default with the CRAs, it is the OC. If the DCA is an in house DCA, then they will register the default, but they are only a DCA in name and actually are often staffed by OC staff.

 

A default notice is normally registered with the CRAs 90 days after the last contracted payment is received. From that point on the OC can assign the debt to a DCA.

[onthebrink]

Just to add my thanks onthebrink...

 

Thanks for a very informative and well presented thread.

 

Regards & best wishes, Dave.

 

Thank you.

 

 

Just to answer a PM question (please guys/girls don't be shy, put your questions in the thread - I don't bite).

 

Should I talk to the DCA when they call?

 

Not every call NO. Once you have notified the DCA of your financial status and offer of payment and followed this up with a letter then responding is your decision. You should only tell them as much as they need to know in order to determine if they will accept a payment plan.

[onthebrink]

These will be simple assignments, then. This may well help to explain the 'rights but not duties' mantra trotted out by so many low-end DCAs. We know that in many cases it's simply bolleaux, but it may be that in other cases that it's a simple assignment and we can go after the OC as well.

 

Yes. Your getting this DCA lark...

[onthebrink]

Hi Onthebrink

 

A fantastic thread, very very informative. I have some qustions for you if you don't mind?

 

1) what's your advise on Bank overdraft debts that are years old? I know they are apparently not covered by CCA but some OC DCA think they are and respond in similar fashion as like credit cards.

You sahould treat an overdraft debt as you would any other. The DCA are!! If you call the DCA about an overdraft debt they don't change script!! to a DCA account manager a debt is a debt is a debt.

Regarding CCAs and overdrafts, to be honest, there are lots of threads on here debating the legal position on that and they have a wealth of information and experical evidence to provide you with a better answer.

 

2) what's the best way to get rid of DCA /OC etc who have been trying for years and years?

If the debt is less than 6 years the OC is likely just to move the debt around between DCAs. At some point the OC will write-off the debt within their accounts and this is usually after they have sold it on to a DCA (see comments expressed above). THAT DOES NOT MEAN THE DEBT DISAPPEARS, IT JUST MEANS THE OC HAVE CONCLUDE THEY CANNOT RECOVER THE DEBT.

If the debt is over 6 years old and you have not communicated or admitted you owe the debt then the DCA is not legally allowed to pursue you. See the thread on 'stratute barred'.

My advice: ignore them. They will either take you to court for a CCJ judgement or it will drop off you CRA record 6 years after the orginal default notice was issued, and they then cannot pursue you. BUT It actually might be you that is causing the DCA to pursue you, by the simple fact that you responding to their threats, and thus you are keeping the fire burning. Rougue debtors use this strategy on enforcable debts to prevent payments for many many years.

 

3)I had a CCJ years ago that has disappeared (only just realized after obtaining my Credit file). I have been paying Brachers Solicitors £10/month every month since judgment (shame I didn't come across this site then eh?)

The problem is I can not fir the life of me remember how much this was and wether i have actually paid it off and am still paying unnecessarry?? Have written to Brachers many many time but they just don't reply. If I still owe them from initail judgement what can they do if i stop paying? can they default me? and will me CCJ ome back again?

Stop paying. They will write to you with an outstanding balance letter and demand you start paying, you can call, say sorry, and resume payments knowing how much you owe. Two things to remember - 1) ensure they do not add charges for you 'failure to pay' and 2) if they issue a default notice ensure they remove it.

 

Thanks again for your help, I know ur v busy today with all replies etc..

 

T

 

Hope this helps.

[onthebrink]

Hi and thanks for the reply.

 

What concerns me about this matter is that the OC and DCA have all signed for the paperwork and have all had the evidence regarding this as in bank statements and official letters from our bank and the OCs bank to say that the money was paid and the money was recieved.

Ignorance on the part of the DCA, they act for the OC and so will just keep chasing.

 

How can they just ignore the evidence and how can they just ignore letters that were sent especially when they are signing for them as the debitor will have proof the letter was signed for?

Because the DCA staff will see that you file already has that information and ignore it because the OC say there is no legal basis to you claim. But that don't make it right though.

 

Also how can the OC refuse to accept any liability for the missing payments with the large amount of evidence and even there own bank saying the money is there?

If the OC refuse to admit liability you must take them to court. If you have ALL the evidence to support the money was paid you need to seek the advice of a solicitor. Explain the position you are in and ensure they understand you want to reclaim all legal charges from the OC. Solicitors will assess you case, often for free, and you will then be in a position to know exactly what the next step should.

Stop banging your head against a DCA wall and call a solicitor.

 

Thanks for being so understand with us and for answering all our question BTW as you will understand some of us are having quite a few problems with DCAs.

 

Chrissi

 

Good luck.

[onthebrink]

Onthebrink, I think I love you!

Seriously great thread, and many thanks! xx

 

 

Thank you.

[onthebrink]

Hi Onthebrink,

It's good to meet you. Can you tell me please if it's legitimate for an OC to issue default notices when no actual payments have been missed?

You need to go back to your CRA and identify the date when the default notice was issued on the account. You then need to trace back 90 days and put in writing, providing certified copies of the evidence, to support you claim that there were 'no missed payments' during that 90 day default period.

This should be sent to the OC recorded delivery and give the 28 days to respond or you will commence legal action for 'unlawfull issue of a default notice'. Update the DCA in writing informing them that you have issued the OC with a formal 'pre-litergation dispute' letter, and request they hold the account for 48 hours so they (DCA) can obtain instructions from the OC.

 

The default notices never arrived either but the accounts were passed on to DCAs after that and the hounding began.

Thanks for a brilliant thread which is answering lots of questions.

 

The DCA will chase once the default is issued. So that is not the problem tbh.

[onthebrink]

A question regarding a different DCA/OC.

 

I am just going to give you a bit of backround before i ask the question as this may help u.

Now the DCA is the in house for the OC they are operating under a different name but it is pretty obvious they are the same company when you look at the paperwork and when you look on line.

 

I had 2 different accounts with a company under there sub companys.

Now i queried the account with CCA requests and they passed the accounts to there in house DCAs.

 

I requeried the CCAs and got back nothing that was a CCA just a couple of statements and the other account i got back a blank CCA asking that i fill it in and send it back.

 

Sent them a non compliance letter and then after about 6 weeks they wrote to me saying they accepted the CCA was unenforcable and dropped the account and sent it back to the OC who then cleared the balance.

 

A couple of days before the letter telling me the DCA has dropped the file and the OC had cleared the balance they registered a deafult on my credit referance file but the amount it settled and stands at zero. I have contacted the OC and they claim it was not them and the DCA claims it was not them. They have refused to remove the deafult. They have the deafult amount at zero not anything else.

 

How can either company say it was the other and how can they register the deafult as correct if the amount is zero and no body will admitt to puttin it there?

 

There are 3 points here.

 

1) CCA request -

the OC was unable to provide a valid CCA for either account and would have determined the debt was not recovable.

2) £0 balance on accounts

the OC not the DCA would have updated your CRA to show a £0 balance, they wrote the debt off.

3) Default notice on CRA

If you had missed contractual payments on the accounts for 90 days then it is standard to issue a default notice.

 

What it appears to look like happened is the OC realised they could not enforce the debt so decided to write it off and update the CRA with £0 balance.

They may have realised that no default notice was issued and so corrected their error.

 

The OC has a duty to other lenders to ensure the information on your CRA is as 'accurate' as possible. Hence the reason why they issued a default (telling other creditors you had failed to make the contracted payments) they put a £0 balance on the file (I would suspect they didn't put on the file 'settled in full' or 'partially settled' but by the sounds of it just a £0 (this tells other creditors that you didn't settle the account the OC did - it's a nod/wink to other creditors they wrote the debt off).

 

By the sounds of it you have achieved what most people on here desire. Possible. But drop me a PM if there is more I need to know.

 

Oh, and it would be the OC that made the decision and not the DCA.

[onthebrink]

Very good ,good info . I think its very clear there are a huge number of unenforceable accounts. If you have any doubts you must fight back against the tactics used by the DCA,S . The info provided shows that phoning these companies must be avoided and contact should be by letter only . This thread make me more focused on dealing with them .

 

Yes. Letter should be your main point of contact. At least YOU have a record of exactely what is said.

 

HOWEVER:

 

You should call the DCA once, this would be best right at the start, but if not then way up what the know and whether it would be to YOUR advantage to clarify your position.

 

If you are going to call them:

Prepare what you are going to say - write a statement setting out your financial position, your repayment offer, how long you want the repayment offer to last before re-assessment (6 months). Tell them you will confirm this ion writing with a budget.

 

How to do this....

When the call has gone past the security questions say clearly, I need you to understand that...read your prepared statement...if at anytime they try to interrupt say 'Please show me the respect to listen and I will show you simular respect when I have finished' finish you statement.

Request they make NO CALLS as you 'do not discuss your financial position verbally but only in writing for both parties legal protection'.

If they just keep interrupting ignore what is said and go on autodrive...look at and concentrate on your statement and do not listen to the DCA staff...

Then stop. Thank them for their time and hang up. Do not wait for a reply.

 

All you will get is ' Miss X you need to pay this NOW'.

 

You have now formally told them everything they need to know. Follow this with a letter.

[onthebrink]

I think a few well placed reputation clicks wouldn't go amiss either!!

 

 

I agree

:grin: :grin: :grin: :grin:

[onthebrink]

Sorry CL = CL Finanace & HC = Howard Cohen Solicitors

 

Debt owed on a store card Debenhams, then CL Finanace came on board followed by H Cohen solicitors . If you look at Cohen & my property

Many thanks

 

Thanks.

 

Can I respond to this in a PM, mainly because I need to think of a good response. I'll do this Thursday morning if that's OK ginnever.

[onthebrink]

So if I read this right, if the DCA can not produce the CCA then they will continue to chase the debt until a court decides it’s unenforceable. In my case the default was issued 8 years ago and has now fallen off my credit file. I assume if I contest it they can’t default it again? In which case their only option would be to go to court to seek a CCJ.

 

If I go down this route should I stop making payments? Would the fact I’ve made payments for 8 years cause me problems?

 

They can only default you once - 90 days after you stopped contractual payments. A CCJ is not their only option of debt enforcement, they can pass it to a DCA to hound you, and you may never get to go down the CCJ route.

Be carefull...I don't know the payment plan agreement you made in order to have paid them for 8 years! the OC/DCA may issue a new default notice on the grounds that the payments you are making are now the 'contractual payments'. It's a small legal technicality you would have to go to court to resolve.

[onthebrink]

OTB.

 

I only stopped payments when they failed to product the documents which i was entitled to due under the rules.

 

Does this still effect the deafult?

No. the default is put on your CRA to highlight the fact that contractual payments have stopped or were missed. The reason or motivation for the stopped payments has no relevance to the issue of a default.

A default is saying in laymans terms... 'they stopped paying' it does not register as 'they stopped paying because...'

 

Oh and no deafult notice has ever been recieved by me for either accounts.

 

You can make a formal request to the OC for a copy of the original default notice. But I think it's a bit pointless. I can't comment on why you never received them.

[onthebrink]

 

I've discovered, from my SAR, that last April a sum equal to the outstanding balance was entered as a credit, leaving a nil balance on each of my three accounts and every month thereafter it shows payment due £0.0 and payment received £0.0

I was meanwhile oblivious to this and happily making my normal monthly payments. Fortunately I have receipts to show the payments were made, but there is no mention of my payments on the statements provided under my SAR nor any reference to the debts having been sold to any third parties, so what's going on I haven't a clue.

 

A £0 balance entered on you account indicates the debt was written off. Anything you paid after that date was a bonus to the OC.

Please understand they may have sold the debt on but more likely they wrote it off within their accounts as part of their aged debtor list. It is common place for ALL businesses to have a bad debt write off procedure whereby when the debt hits a certain aged it is written off.

[onthebrink]

Thanks for all the nice rep remarks.

:wink:

 

Much appreciated.

 

Tomorrow I will return with:

 

'Information you should NEVER tell a DCA.'

 

Some of it is obvious, but the smallest 'slip' can mean the difference between them pursuing a CCJ or giving you a £0 balance write-off :grin: .

[onthebrink]

Hi onthebrink, I have a question for you, if you don't mind answering.

 

I have 2 debts with the same OC that were assigned to a DCA 2 years ago. I CCAd the DCA who furnished me with all the information along with statements from the OC showing both debts were written off when they were assigned to the DCA.

 

But, the DCA has now given up and referred my accounts back to the OC, can they still chase me for written off debts?

 

Many thanks.

 

In short yes.

 

There are two types of debt write-off.

 

The first is purely an accounting treatment. Under the International Financial Standards all businesses (operating over a certain turnover) are required to show a 'true and fair' view of their financial position at the year end.

 

As part of that financial accounting requirement all debts, which sit on the companies balance sheet as an asset (just like 'cash at the bank' is an asset) and thus make the company look financially more stable than they may actually be!, these debts 'under default' MUST go onto the companies aged debtor list, and under the rules these debts must be 'written-off the accounts' on a 'timely basis', this reduces the amount of 'assets' the company has and thus provides investors with a 'truer' picture of their financial picture.

 

Still with me 8) .

 

So far this type of 'write off' has not changed YOUR position. That happens when:

 

the other type of 'write off' is when the OC has done the above but then makes the decision to actually write-off the debt. They will do this by formally updating you CRA file with a £0 balance but (normally) with no narrative like 'settled in full' or 'partially settled'.

 

What you saw in your S.A.R - (Subject Access Request) was the OC doing the first type of write-off. Writing it out of their accounts.

 

***I must stress that when the OC completes the first type of write-off they ARE NOT admitting the debt is going to be written off, nor are they going to stop pursuing the debt. It is only done as an ACCOUNTING TREATMENT.

 

What can happen at this stage of the process is the debt is passed around the DCAs to attempt recovery or it is sold to a DCA at a significant reduction. The OC has passed the debt on and you are likely to be chased by the DCA.

 

I hope this makes sense.

[onthebrink]

Thank you that is kind of you.

 

Don;t know if you will have time to look over the post that I started Re Cohen & my property if you can make end or tale of that

 

I will do that tomorrow, but can you pop a link up so we can all have a read.

 

Cheers

[onthebrink]

Here's one for you, onthebrink;

 

What changes have been made to DCA's internal procedures now they are covered by the Financial Ombudsman Service? I've made formal complaints about harrassment over unenforceable debts and had a response saying they've passed the account back to the OC - is this usual practise, so you could say making a formal complaint is the best way to "manage" DCA contact? (This one was Lewis Debt Recovery, FYI)

 

 

I have highlighted a key point in that question.

 

What has actually happened is the DCAs formal internal complaints procedure has kicked in, because you have stated that the account is in formal dispute (unenforceable) with the OC, and the DCA should not be pursuing the debt, and so this is 'harassment'.

 

The DCA internal procedure would first put your account on hold. The OC would be asked to confirm the dispute you claim. If they do, the account is passed back to the OC. On this occassion, in my view, the DCA has acted correctly, although I'm sure it took a couple of letters.

 

Regarding the FoS: they can act as a check and balance on a DCA and can be used to your advantage. But, you do need to press home you point with them and have exhausted the DCAs/OC formal complaints procedure before they will do anything of help (mostly).

[onthebrink]

What do you make of this as I feel they have failed to supply the information requested under CPR

 

I requested information under the CPR rules & today I have received a this response from CL saying-

 

We have been in contact with our solicitors HC who have advised that we are not obligded to provide this information and would advise that the particulars of claim detailed om the cc form should be sufficent to allow you to respond accordingly.

 

Having said that we have been in contact with opur predecessors GE money & have been able to obtain certain information which is enclosed herewith.

 

They have sent a copy of the credit agreement CC act 1974 page 1 of 3

Which is signed by me, however no date against my signature,

A signature for GE money which you can't tell whose signed and again no date.

 

A copy of the deed of assignment 5 pages dated on the front the 16th May 2007 a scribbled signature on the back. This is the first time I have ever seen one of these...

Also a set of copy statements ranging from Mar 02 to May 07 however not complete as there are some statements missing...

 

How would you proceed from here as CL have not complied fully with my request under CPR?

 

I am due in court on the 31.03.08

 

thanks

 

I've now had the chance to look at this in detail and feel the point I need to make is relevant to a lot of people.

 

I agree that they have not fulfilled your original request but they have provided all the information they hold on file. The comment 'our legal advisors say we do not need to comply' is a standard response, if this was true it would be a letter from their solicitors you would be reading!

 

What you need to do now is write a letter explaining that your orginal request has not ben fully satisfied. Detail what you think is missing. Notify them that the missing documents will be pointed out to the court. Reiterate the court date. Give them 14 days to provide the missing information. Send recorded delivery.

 

On the letter, on the line below the Dear sir/madam write in a font that is bigger then all other fonts and in bold:

'DO NOT IGNORE THIS LETTER - LITIGATION ADVICE'*

This will then be passed to the legal dept/solicitor. You have a duty to inform the other party in the court case (or potential court case) any information that may have a baring on the outcome, and if you feel they have failed to provide adequate information, you must tell them that unless they do, you will notify the court.

 

If you are in any doubt, seek the help of a qualified solicitor. A good one can be worth her weight in gold.

 

GOOD LUCK with you case.

 

*To everyone else, this sub heading should only be used in the rare occassion that you are notifying the DCA/OC of litigation material, or their failure there of. Do not use such a heading to get them to take your letters more seriously, the account manager will pass letters with this sort of heading to a supervisor, they will read it and if it is not informing them of pre-litigation material then your file will be marked and future letters ignored.

 

Supervisors can be extremly nice people and good to have on your side when you feel your winning the battle (i.e they don't have a valid CCA) but don't waste their time .

 

I'll be back on tonight to answer questions.

 

 

PS. Someone PM me relating to 'team leaders' within DCAs. I'll explain their role in my post on 'what not to tell them', because I have deliberately ommited them so far.

[onthebrink]

Thank you

 

Does it make any difference that the CCA they have sent to me doesn't havea any dates on My signature is on but no date which I find odd. also the signature for the company doesn't have any dates on..

You would expect the date and signature to appear together on the same form but sometimes it may be included with the header or footer. But you would ecpect there to ba a date.

 

The deed of assignment is dated the 16th May on the from but the signatures on the back for the company are the same signature as the witness...is that legal?

You must be sure the signature are exactly the same, which I'm confident they are. The same person cannot sign for the company and as the witness.

 

Hope this helps.

[onthebrink]

Hi Folks,

 

Just trying my luck with my issues.... As it seems all the ultra inteligannt CAG's are on this thread....

 

 

Need your lot's great advise on this matter. Think its a little complicated but will try to keep it sweet and simple.

 

Had Halifax Current account with overdraft of £3200 for over 5 years, which they keep automatically renewing and sending me letter to confirm annually.

 

In Oct 07 when my balance was new OD limit my card was cloned and I was subjected to around £400 of fraud making my account over limit (through no fault of my own).

 

I visited the bank explained etc they filed an investigation etc and the Bank manager manage to extend my overdraft by the same amount (for 1 month) so that I can take money out, great I thought....

 

But then after that when the month has gone by they decided to put my limit back to £0 !!! They would not put it back to the initial amount as promised by the bank manager.

 

So i complained to no avail got final responce back, basically saying NO and so I now owe them £3500+. They have added a hell of a lot of charges on it too. Now they have sent me a de fault letter etc etc

 

Can some one please advise me what action to pursue now?? I have complained to the FOS but it gas not been looked at yet as they are busy.

 

 

Pls Pls Pls HELP........

 

Thanks in advance

 

Unfortunately your in the position so many people subjected to fraud find themselves in.

 

Through no fault of your own the bank has determined to withdraw you overdraft facilty, which they have a legal right to do. It's not nice but it is a reality at this moment in time.

 

There are 3 things you need to resolve.

 

1) The unlawfull 'over you unathorised overdraft' fees and charges which you should start reclaiming (if you haven't done so already), and there are lots of threads under 'bank charges reclaim' for that.

 

2) The £400 that was taken from YOU, not the bank, should be reclaimed via the formal complaints procedure. I know you said you had exhausted that but I'm sure it related to reinstating the overdraft? Which they won't do. You need to start again by complaining that they have failed to refund to your account the £400 taken by fraudsters. The onus is on them to prove the money was not taken by fraudsters and was transactions you authorised. Which I'm sure they will fail to prove.

 

3) You need to open a new bank account and conduct your finances through that account, treating you Halifax account as an ongoing debt.

 

So that should start to move the debt down in the long term (they will keep adding charges until the test case is completed in July, but you need to log you complaints NOW.

 

TBH. I can't see how you can argue that the account is in dispute for the original overdraft amount. So that night be a case of agreeing to resolve the amount outstanding when they return the £400 and bank charges.

 

It's a small step but the best I can do.

[onthebrink]

The man said he will answer any questions, i was also told to go back to my tread, GIVE TILA A BREAK

 

Always happy to answer questions

[onthebrink]

THANK YOU ALL FOR THE COMMENTS AND PMs

 

 

What should I never tell a DCA?

 

We need to first identify what the main options for the OC, and then look at what information they need to determine which option to take.

 

Enforcement actions:

1) Payment plan with OC.

2) Pursue through DCA.

3) Bankruptcy.

4) Write-off the debt on your CRA file.

5) Offer Full & Final Settlement (future date).

6) Offer Full & Final Partial Settlement.

7) County Court Judgement:

- Full settlement of account

- Payment plan set by the court

(if you default on this court judgement then the OC can get an)

a) Warrant of Execution (County Court Bailiffs)

b) Attachment of Earnings.

c) Charging Order.

d) Third Party Debt Order.

e) Administration Order (if you have a number of debts less than £5k).

 

 

 

Ok, so that’s mostly what they can do.

 

What information do they already have?

 

Put simply, anything you told then on your original application

 

Name, including maiden name.

Address

DoB

Employer

Salary

Bank details

Dependents

Debts (at the time of application)

Accommodation

Etc.

 

 

So what’s really important for them to know, and what should I not tell them?

 

As I stated in an earlier post, the DCA is not just interested in getting your cash. It’s also interested in building a picture of your Assets and Liabilities.

 

Assets

(an item of value, from Houses to motors, from shares to washing machines)

 

Are you a homeowner?

Are you in rented, unfurnished accommodation?

Do you own a car.

If your debt was a loan, what was the loan for? A car? Home improvements?

 

Was it to buy an assets?:o

 

If your debt was a credit card, what did you buy in the last two years? White goods? Furniture? TVs? DVD players?

 

The more assets the DCA knows you have the more likely the OC will pursue a CCJ: They know that if you fail to pay they can instruct the county court bailiffs to seize your ASSETS.

 

 

DON’T TELL THE DCA ANYTHING ABOUT WHAT YOU OWN.

 

 

 

Liabilities

(debts you have, both secured and unsecured)

 

Mortgage (amount, to whom) –

Secured Loans (amount, to whom) -

Loans (how many, How much)

Credit Cards (how many, How much)

Etc.

 

 

DON’T TELL THE DCA ABOUT YOUR SECURED LOANS

 

 

 

Your financial position:

 

Income

If you are employed and earn a good salary you must be aware that the DCA will want you to prove you salary details. (They will request your last three pay slips)

 

Why?

 

They will find out

who you work for,

payroll number,

NI number,

tax paid in year (very important to the DCA for Bankruptcy),

your personal allowance,

if you have any other court payments (this appears in the section for Tax/Ni as a SLR/CO payment),

Pension contributions (Bankruptcy (depending on age)).

 

And this will also open the option of an Attachment of Earnings (AoE) if you default o the CCJ.

 

NOTE: An AoE is not set by you, it will be determined by the court and based upon the Statement of Affairs (budget) you provide the court. If you have surplus income above the ‘prescribed limit’ the court will determine what monthly payment should be taken directly from your salary (and your employer can also add £1 for paying it to the court! Cheek of it).

 

Benefit payments confirm you are living on a low income and will help support your case for reduced payments and even potential write-off.

 

But don’t tell the DCA about your Working tax credits and certainly not about your Children’s tax credits.

 

Expenditure

Don’t include ‘luxuries’, like Sky TV, or Broadband, personal pensions, they will remove this amounts from your budget and demand a higher pro-rata payment.:o

 

When they review your budget or SoA, it is a certainty they will refuse to accept your offer unless they receive your payslips, and proof to support your highest expenditure items.

 

HINT: Provide them but blank out all key information except the monetary values (but do blank out the tax paid to date).

 

Only give enough information that allows then to determine your offer of payment is realistic.

 

 

Always remember…………………..

 

The DCA wants to build a full picture of everything you own and owe.

 

This allows the OC to decide if they should go for a CCJ where their options of enforcement are significantly extended if you default.

 

NOTE: If they identify you own a home they WILL check with the land registry to ascertain how much its worth (based on the most recent sale of a similar property in your street) and compare this with the outstanding mortgage balance on your CRA file. This will show whether you are in positive or negative equity. Having secured loans on the home will also enter the calculation as they may reduce any ‘profit’ after the mortgage is paid. The DCA will determine the likely success of a charging order and advise the OC to start CCJ proceedings.

 

YOU SHOULD NEVER INFORM THE DCA YOUR HOME IS UP FOR SALE. THEY WILL PROCEED WITH A CCJ IMMEDIATELY.

 

One step that the DCA can advise is to file a petition for bankruptcy.

 

They would do this if their chances of recovery of the debt, even through a CCJ, are zero.

 

If they know you are in employment, have a large liability of debt, assets that can be sold, but offering nothing to reduce the amount outstanding, then bankruptcy is a realistic option. This is why you should not tell them how much tax you have paid in year.

 

NOTE: When you are a bankrupt the Official Receiver will reclaim all the tax you have paid during the year, and put you on a NT Code (No Tax) through your employer, and you have to pay the Official Receiver the tax you would normally pay. Also, if you have a surplus over expenditure and it is higher than £100 month you will have an IPA (payment Arrangement) of 50% of surplus income for 3 years.

 

Both these procedures could prove a better recovery option for the OC. But it is only a realistic possibility if YOU give them the information to make the decision.

 

[onthebrink]

I have a query

 

If a debtor has received Deed of Assignment from DCA. does the debtor claim penalty charges from DCA and will they aknowledge the claim and pay up?

 

or

 

Can the DCA return the debt back to OC after DoA?

 

many thanks and great work:D

 

It really depends on the clauses within the deed of assignment. It is not uncommon for the DCA to add two clauses. One that stipulates if there is any pre-assignment dispute or disagreement the OC will be resonsible for resolving this before action restarts. The second is that if any monies have been paid to the DCA they will be with held until the dispute/disagreement is resolved or used to cover costs lost by not pursing the debt.

 

So in answer to your questions.

 

1) Start with the DCA and they should pass it to the OC.

2) Yes.

[onthebrink]

OTB - Can you tell us what you know about debts being purchased (by DCA from OC) under the Law of Property Act.

 

I'll return to this tomorrow because it's complex.8)

 

I think the DCA staff are getting their own back.....The thread rating has gone from 5 to 4......