Powers of DCA?

[mikeforan]

There is a lot of useful information on this forum regarding powers of DCA (debt collection agencies) but I am still not clear about their powers and if someone can clarify them for me?

 

I understand that the DCA have no power in itself. They have to get the legal powers from the court. Now suppose that a Creditor sells his debt to DCA, then does it mean;

 

 

1. Now DCA can take you to the court because they own the debt
   
2. DCA can add their charges to the debt as their collection fees and it becomes legal part of the the total debt
   

Now suppose that the debt was disputed and DCA took you to the court, how the defendant will make its case as the original creditor is not present to answer questions?

 

Or my assumption is completely wrong and only the original creditor has the power to take the defendant to the court?

[PGH7447]

There is a lot of useful information on this forum regarding powers of DCA (debt collection agencies) but I am still not clear about their powers what powers? and if someone can clarify them for me?

 

I understand that the DCA have no power in itself. They have to get the legal powers from the court. Now suppose that a Creditor sells his debt to DCA, then does it mean;

 

 

1. Now DCA can take you to the court because they own the debt if they have the correct paperwork then yes it is possible, some are more keen than others to try this route
   
2. DCA can add their charges to the debt as their collection fees and it becomes legal part of the the total debt no they cant
   

Now suppose that the debt was disputed and DCA took you to the court, how the defendant will make its case as the original creditor is not present to answer questions? you fight the dca not the oc, the dca took you to court therefore it is them to prove that a debt exists

 

Or my assumption is completely wrong and only the original creditor has the power to take the defendant to the court?the oc can if they still own the deb but they tend to sell their debts off to get tax relief

 

pgh

[mr.ton]

They have none whatsover - they just think they do.

[mikeforan]

Thanks PGH for your clarification on this matter. However, it has raised some more questions;

 

 

• Suppose the OC has sold its debt then can they buy back debt if DCA were unable to collect? What is the usual practice if DCA was unsuccessful? I believe if Tax relief was received then they would not be able to buy back debt?
  
• Is there a way to find out if the debt has been sold without making contact with the DCA? Do the DCA behave differently when they own the debt?
  

[babybear39]

DCAs can charge if it states in the original contract.

[PGH7447]

Thanks PGH for your clarification on this matter. However, it has raised some more questions;

 

 

• Suppose the OC has sold its debt then can they buy back debt if DCA were unable to collect? What is the usual practice if DCA was unsuccessful? I believe if Tax relief was received then they would not be able to buy back debt? - no this would be classed as fraud, what they do is sell it on to another pondlife lower down the food chain, and then the cycle of threats starts again
  
• Is there a way to find out if the debt has been sold without making contact with the DCA? Do the DCA behave differently when they own the debt? - if the OC sold the debt then you should recieve a Notice of assignment, if you did not then continue to contact the OC
  

 

PGH

[PGH7447]

DCAs can charge if it states in the original contract.

 

Now now BB you know that they only charge because people let them get away with it, I have never paid a DCA a single penny in charges

[Kraken1]

no, BB is right. They can charge if it is in the original contract or if it is a direct loss flowing from a breach of contract.

[PGH7447]

the original contract is with the original creditor not these worms

[babybear39]

With an absolute assignment the terms and conditions from the original contract pass to the assignee.

[PGH7447]

Dont care:D half the time they claim to have bought an account and when you query it and they say oops must check with the original creditor

 

So unless proven by the cretins they have the correct paperwork to support their case i would never pay any charges added by a DCA toad

[Kraken1]

So unless proven by the cretins they have the correct paperwork to support their case i would never pay any charges added by a DCA toad

 

there are two separate points:

 

can a creditor add charges - yes in certain circumstances.

do you need to pay if the creditor (whether original or one who has acquired the rights to the account) does not have the correct paperwork - debatable.