DCA Charges for making payments.....

[UnitedFront]

Hi guys, this is something I have been wondering about for a while, and I have seen a few people in other posts having the same kind of issues.

 

But where does the law stand on the issue of DCAs adding a charge for you making a paymen?

 

For example, I recently had dealings with a DCA that charged 50p to pay by Postal Order, 50p to pay by Credit or Debit Card, 50p to pay in the Post Office, 50p to pay by Cheque, 50p to pay by Direct Debit and 50p to pay by Standing Order...... so in other words whatever way you pay them they charge you 50p for the privilege!!!

 

Can this be legal? I know for damn sure it's not moral, but I am unsure of where these leeches stand in the eyes of the law??

 

I dont have to deal with the above company any more but I just thought that this could be quite an interesting and helpful thread for the people of the forum

 

Cheers

UF

[cerberusalert]

I would think 2.10d would cover them making what is effectively a 'handling charge.

 

THE DEBT COLLECTION GUIDANCE

 

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.

[clemma]

@ Cerberusalert - Would there not also have to be something in the original agreement regarding this too?

[cerberusalert]

@ Cerberusalert - Would there not also have to be something in the original agreement regarding this too?

 

That would come into section 2.10

[clemma]

That would come into section 2.10

 

I had a blonde moment.......

[Blondmusic]

Wescot used to send payment slips so i could pay at the Post Office as i refused to pay by direct debit. Each time i would make a payment at the Post Office i was charged £2.20 each time!!I kept writing to them asking for a way to pay that didn't result in me having to pay charges but they just ignored me. In the end i set up a Standing Order. Then i sent them a CCA request but they do not have it so i don't have to pay them anymore!!

[angry cat]

Normally, when paying a bill such as utilities, the payment slip will state where one can make the payment free of charge!

[diddydicky]

mmmmmm as i understand it you have never entered into a contract with a DCA therefore there can not exists any terms and conditions stating what they can charge you for handling payments .

 

they are therefore just making them up

 

well what's good for the goose is good for the gander

 

so why don't you charge them 5 pounds for every payment you make as your costs of administration.

[clemma]

I think it is a Post Office charge, rather than a DCA charge. It's just another way for them to screw you over though - they will be fully aware of the PO's charges, which is why they probably refuse to give you alternative methods.

[F_DCAs]

AIC do this too (25% on what you pay them if you shouldn't be paying them). Definitely one for the OFT, I think.

[angry cat]

Yes, it is the Post Office charge. However, I believe that they should state where a payment can be made free of charge;

normally, this will be at the Bank that the DCA use;

e.g. Barclays; A&L etc

 

AC

[clemma]

Totally agree

[cerberusalert]

For example, I recently had dealings with a DCA that charged 50p to pay by Postal Order, 50p to pay by Credit or Debit Card, 50p to pay in the Post Office, 50p to pay by Cheque, 50p to pay by Direct Debit and 50p to pay by Standing Order...... so in other words whatever way you pay them they charge you 50p for the privilege!!!

 

I think the clue is in the highlighted words.

[make them aktiv runners]

For example, I recently had dealings with a DCA that charged 50p to pay by Postal Order, 50p to pay by Credit or Debit Card, 50p to pay in the Post Office, 50p to pay by Cheque, 50p to pay by Direct Debit and 50p to pay by Standing Order...... so in other words whatever way you pay them they charge you 50p for the privilege!!!

 

A change of collector from OC to DCA cannot result in a consumer being put in a worse position than they already were. IE if OC made these charges as common practice it is legimate, if not DCA cannot impose them.

 

There may well be a contractual provision for DCA to make 50p charges on every possible payment method, however that contract is between OC and DCA, not you.

[rameses_qc]

You could always deduct 50p from the sum you are paying to cover their charges, which I would say are illegal anyway