Clarity please - DCA charges

[PaulR17]

Hi, I have an open Cabot thread, but I understand a lot of people have a lot of issues on here so I thought I'd ask a direct question in the meantime which may help me

 

Can a DCA charge interest and/or other penalties?

 

If so, in what circumstances? I have always been led to believe that if a default notice has been applied, the agreement is technically ended and thus the terms cannot be passed onto a DCA, only the debt itself if they purchase it and then its at the balance that was last held by your creditor

 

Any advice or even pointers to the web that will help, as I'm unable to find anything

 

thanks

[cerberusalert]

This is what the OFT guidlines say;

 

Charging for debt collection

2.9 Charges should not be levied unfairly.

2.10 Examples of unfair practices are as follows:

a. claiming collection costs from a debtor in the absence of express

contractual or other legal provision

b. misleading debtors into believing they are legally liable to pay

collection charges when this is not the case, for example, when there

is no contractual provision

c. not giving an indication in credit agreements of the amount of any

charges payable on default

d. applying unreasonable charges, for example, charges not based on actual

and necessary costs

e. applying charges which are disproportionate to the main debt.

[twofoot]

In other words if it's not in the CCA they cannot charge it.

[PaulR17]

If its defaulted though, what does this do to the CCA, I thought it terminated that, so no charges could apply?

[cerberusalert]

First they send a 'Default Notice' to give you the opportunity to remedy before they mark your credit file, it doesn't terminate the a/c they have to send a 'Termination Notice' before that happens. Until they do they can still add interest & 'fair' charges.

 

If you received a 'Default Notice' can you remove identifying details and post it up? It has to conform to a strict format & be executed correctly to be valid, see;

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/200901-anatomy-default-notice.html

 

Default Regulations http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=1411&d=1193876108

[PaulR17]

Hi

 

My Partner has never seen the default notice and due to the pre CAG days and her own naivety started paying them a fixed payment about two years ago. I have another thread with the detail on this, not sure how to link to it, but I am interested as to whether the hassle factor is now worth the principle or not. That's is what I am trying to get to the bottom of

 

I truly wish I had spotted this with her much much earlier and then worked the CAG magic that has worked with Lowells thus far

[cerberusalert]

Copy & paste your thread URL back here.

[PaulR17]

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/206844-cabot-do-they-owe.html

 

thanks

[PaulR17]

bump