Get Out Of Paying Debt!

[MCKENNARISE]

From what i have gathered,

When your debts get sold to collection agencies like cabot, its possible to ask for original copy of signed agreementetc. If they don't supply within 12 days , only a court can reclaim the debt.

After 30 days it is totally unenforceable!

 

Has anyone actually done this, is this true?

If true what steps must be taken to remove debt defaults etc from credit file?

[NitrousOxide]

I've found that requesting defaults is something hard for them to do as well. Ask for the default (say you didn't recieve it) and nine times out of ten they wont have it. It's one of the first steps they have to do on the journey to court.

[alanfromderby]

From what i have gathered,

When your debts get sold to collection agencies like cabot, its possible to ask for original copy of signed agreementetc. If they don't supply within 12 days , only a court can reclaim the debt.

After 30 days it is totally unenforceable!

 

Has anyone actually done this, is this true?

If true what steps must be taken to remove debt defaults etc from credit file?

 

Have a good read through the thread "Debt Collection Agencies" in the "General" forum.

 

Your facts are almost correct, however it is 12 working days, after which the DCA are in default and you can stop paying, until such time as they produce the documents. After one month the situation is more clear cut, and they have committed an offence. You can then take action as appropriate.

[Seminole]

The point here is not to get out of paying debts. It's about forcing the creditor to comply with the law. Where the creditor happens to be a scavenging debt buyer who has paid a pittance for the debt it's fair game to make them prove the debt and, if they are able to do so, agree a full and final settlement at less than the nominal value.

[jo5ephedward5]

Have a good read through the thread "Debt Collection Agencies" in the "General" forum.

 

Your facts are almost correct, however it is 12 working days, after which the DCA are in default and you can stop paying, until such time as they produce the documents. After one month the situation is more clear cut, and they have committed an offence. You can then take action as appropriate.

 

So what action can you take? ie what are the options?

 

The point here is not to get out of paying debts. It's about forcing the creditor to comply with the law. Where the creditor happens to be a scavenging debt buyer who has paid a pittance for the debt it's fair game to make them prove the debt and, if they are able to do so, agree a full and final settlement at less than the nominal value.

 

I completely agree - i have been dealing with a few collection agencies and they dont play ball - i have no problem in paying back what i owe to the original creditor if they would accept payments - the thing is most debt i have is from charges that i need to claim back then the rest is DCA charges for taking on the debt and writing to me etc - so if i write the correct letters make a few claims and do things right i should be debt free without trying to avoid my past debts - i'm sure many are in the same boat!

[alanfromderby]

1) You can sit back and wait to see what happens.....probably nothing will, but if it does then you can move to 2 anyway.

2) You can write to the DCA stating that they have committed an offence under the Consumer Credit Act and that the alleged debt is therefore unenforceable. You now expect them to cease any further correspondence, remove any default that they have filed with any Credit Reference Agency, and (if you want to push your look), you expect them to refund the money that you have already paid. Failure to action will result in you contacting Trading Standards, and the FSA.

3) Report the matter to Trading Standards, giving all the details you can.

 

Should the DCA commence a County Court Action, you should defend it on the basis of their failure to provide the documents. I have done a suggested wording for the defence somewhere, but haven't the time at the minute to search for it.

[andrew1]

Alan, if they fail to find or provide the documents after the 30 days what EXACTLY happens to the debt? When you say it is uninforceable what precisely does that mean - is it dead in the water there on in? Is it collectable at a later date? What about the 6 years period?

 

 

Also, I have a thread I need looking at but there's quite alot of the answers here but Cabot are featuring all over the place:

 

http://www.consumeractiongroup.co.uk/forum/other-institutions/18364-cabot-i-want-do.html

 

Thanks

[alanfromderby]

Alan, if they fail to find or provide the documents after the 30 days what EXACTLY happens to the debt? When you say it is uninforceable what precisely does that mean - is it dead in the water there on in? Is it collectable at a later date? What about the 6 years period?

 

After 12 working days you can legally stop paying the DCA who is in default -after one month you can seek redress as above.

 

The position is that the company that is in default have no legal right to collect that debt, and legally you can reclaim anything that you have paid them. You can also seek the removal of any default they have entered.

 

The company may then pass the file back to the original creditor, or it may end up with another DCA.

 

Original Creditor

 

It is always advisable to issue a DSAR on the original creditor at the same time as sending your initial CCA request, as that will alert you to what information they hold. Should they start to chase you for payment when the file has gone back to them (extremely unlikely), you will already know what paperwork they have (if any), and can deal with the situation accordingly.

 

Indeed if the original creditor, and the DCA have not got the paperwork, they cannot, and will never be able to legaly enforce the debt.

 

However, please remember that you should pay your debts, and if you know that you owe a sum of money then you should properly deal with that. Of course, where there is doubt as to exactly what is due, then the onus falls on the creditor to prove the amount.

 

Another DCA

 

If another DCA starts chasing, I would suggest sending the CCA request as a matter of course, but then when they fail to produce the documents it is important to report the matter to Trading Standards. DCA's should not be allowed to get away with buying debt that is "in dispute".

 

Limitation

 

The Limitation Act is very clear, in that any debt that for a period of six years, has no payment made, and is not acknowledged as owed by the debtor in writing, becomes unenforceable after 6 years. However, the debt is still owed - it just cannot be enforced.

 

I must add that if you acknowledge a debt after the six years, the debt remains statute barred.

[andrew1]

Thanks Alan, I'm sure that explains things for a number of people. One of my first postings ever stipulated the necessity to pay debt rather than evade them so thanks for the reminder- its an important point. This particular situation is purley charges passed on to a DCA, some of my others arn't quite so simple so the info given is most helpful. Cheers