DCA unable to produce agreement - what now?

[LaoTzu]

Hi everyone,

 

Had a reply from Moorcroft Debt Recovery this morning in response to my request, (letter attached).

 

Basically they say that the client is unable to provide a copy of the agreement.

 

My current debt outstanding with them is just under £5500.

 

I have been paying them and my other creditors via CCCS for the last 2 years.

 

I'd like to make them a F+F offer to get rid of it but is that the right thing to do? All I want is rid of my debts as soon as possible and to clear my credit rating so we can move house. Any advice on the best way to proceed would be greatly appreciated, if a F+F offer is made, how much should I make?

 

Many Thanks in advance

 

laotzu

[LaoTzu]

bit bigger here!

 

 

[cerberusalert]

As it stands because of the lack of the CCA they cannot take any enforcement action which means you do not have to pay them anything. However, it now puts you in an extremely strong position to make them a full and final offer.

 

If Moorcroft have bought this debt they would have only paid around 10% of its value so you should consider that along with the unenforcability issue if you make them an offer. Everything must be in writing though, and the agreement must include the provision that they remove all adverse information from your credit file, that it is a settlement in full and will not be passed on to another party, and you want their acceptance in writing before any payment is made by you.

[vjohn82]

I would imagine that if you added up everything you have paid them in interest and capital that you may well have fulfilled the capital debt you accrued... do a rough working out and if it comes to a little over the original amount borrowed I would write to the bank to state that they should not be demanding further repayment for interest on a credit agreement that was never properly executed...

[LaoTzu]

Thank you for the response. If there's £5.5k still outstanding do you think an offer of say £600 is too low and should doctor one of the standard f+f letters to also mention the un-enforceability do you think?

[cerberusalert]

The most they can do is refuse, but they'll realise that if they do that there's every likelihood they'll receive nothing so will probably try to negotiate you a little higher.

[vjohn82]

I would seriously look at the figures first... don't forget they sell the debts at a ridiculous rates... chances are they will get back more on a F&F then selling to a DCA.

[IdaInFife]

a little template if you need it:

 

Account Number:

Dear Eejits

Thank you for your letter dated xx/xx/xx, in which you confirm that there is no executed credit agreement relating to the above referenced account and confirming that all collection activity will cease.

While admitting no liability for the account and the sum claimed as owing, I am willing to offer the sum of £xx as an ex-gratia payment in full and final settlement of the account.

This offer is made on the clear understanding that neither you nor any associate company will take any further action to attempt to enforce or pursue this debt in any way whatsoever and that any and all liability on our behalf will be fully discharged on receipt of the above stated monies.

This offer is made on the condition that of all adverse entries regarding this account are removed from our credit files with the credit reference agencies.

Payment can be made within 2 weeks of receiving your written confirmation of your agreement of this offer and the subsequent terms of the offer. Please also identify your prefered method of payment and the details of making said payment.

Please note this offer will expire on (date - give them a couple of weeks) if no letter of unconditional acceptance is forthcoming and may not be repeated. This offer is not open to negotiation.

We look forward to receiving your reply.

 

ida x

[LaoTzu]

thanks everyone for the help and Ida for the template, will send the letter tomorrow and see what they say. Rep left