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Legality of selling an account to a DCA


financialdunce
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Does anyone know for sure what the legal situation is regarding the sale of an account to a DCA?

 

A year ago I CCA’d Barclays, they failed to deliver, I told them they were in default of the CCA and the account would remain in dispute until they produce the correct paperwork, and they could go spin. We all went down the Mercers/Calder road, threats were exchanged, I offered to meet them in court. Silence.

 

Calder have now written giving notice that Barclays intend to sell the account; fine by me. But it does beg two questions.

 

Firstly, Barclays are clearly flogging the account because they have no paperwork and know they therefore would lose in court. So in selling it they know they’re shafting the buyer, who will be in the same position. I’ve no sympathy with either of them, but it seems to me that in selling something that’s not fit for purpose Barclays are guilty of rather sharp practice.

 

Secondly, under the terms of the CCA, a creditor cannot disclose details of a disputed account to a third party. But if they sell the account to a third party that is exactly what Barclays will be doing.

 

So is such a sale even legal? I imagine it is, but if anyone can prove otherwise I’d just love to know.

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it begs the question why are you not sending a recorded delivery letter to barclays reminding them in no uncertain terms the the AMOUNT IN QUESTION IS IN DISPUTE and shall remain in dispute until such time as they provide the requested paperwork ie contracts etc..

also warn them to be selling an account in dispute shall be frowned upon and could result in court action,if they require any information give them a contact number that you will be readily availalable and willing to answer any questions they may have otherwise you would appreciate that they take the time to begin court action in order to clarify the legal standing of this account any further actions such as selling the account to a third party will be regarded as harrasment which you will persue vigourasly with court action against them

something to that effect should help you ok

patrickq1

http://www.consumeractiongroup.co.uk/forum/welcome-consumer-forums/107001-how-do-i-dummies.html

 

 

 

 

Advice & opinions given by patrickq1 are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional

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They are breaching OFT guidelines selling an account in dispute and if they do so without issuing you a Default Notice, they rescind the account altogether and it no longer exists - keep that under your hat until they sell it.

They will aslo be breaching the DPA 1998 by passing your personal data to a third party without your permission - and your permission should have been in an agreement they don't have.

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The OFT Guidelines are not Law, simply guidelines;

guidelines that are not enforced.

 

Morally, it is incorrect but the Law is not based upon morals.

 

Also, it is nigh on impossible to get the ICO to take enforcement action against Banks & DCA's.

 

I don't like it, we don't like it, but those are the bare facts of the matter.

 

The general consumer gets thrown to the wolves, as there is, in reality no consumer protection in relation to the financial industry.

 

Don't shoot me; only speaking the truth!

 

AC

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No one said the OFT guidelines are law. I quoted the laws they would be breaking and if they rescind the account by their unlawful activity they have had their chips. Those laws are there to be used by the consumer and I have used them to good effect. I haven't paid a penny to a bank or DCA for 2 1/2 years and they have all long ago disappeared. It's not true there is no protection. There is if you know what the laws are and how to use them in your favour.

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You don't have to go to court to fend off banks and DCAs - it can be done simply by using your knowledge of law to stop them from taking any action. That is what CAG is here for - sharing that knowledge to stop the banks and DCAs in their tracks from behaving illegally. I've had £48000 of debt written off and have seen off banks and DCAs fairly easily and I have never even had a court threat.

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LOL

I know that Pinky!

 

There is no doubt, that the Banks/DCA's can be fended off and I have shared my knowledge with many.

 

However, going back to the original post, there is no law that prevents a Bank from assigning a debt to a DCA.

 

I have it done to me twice and whilst the accounts were (still are) in Dispute.

Then, the battle starts again...

 

He Ho.

 

AC

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it begs the question why are you not sending a recorded delivery letter to barclays reminding them in no uncertain terms the the AMOUNT IN QUESTION IS IN DISPUTE and shall remain in dispute until such time as they provide the requested paperwork ie contracts etc..

patrickq1

 

We're past that stage. Barclays, Mercers & Calders have all received recorded delivery letters on several occasions stating that the account is in dispute, advising them of what they may not do under the CCA, and warning them of the appropriate laws in response to various threats. They've failed to follow through on the threats on every occasion, simply bleating that they don't accept that they account is under dispute. My response to that has been "fine: show up in court with the paperwork."

 

if they require any information give them a contact number that you will be readily availalable and willing to answer any questions they may have

patrickq1

 

Frankly, that sounds like really bad advice. Everything I've read here and elsewhere, the advice I've had from CAB & CCCS and my own common sense says that you never speak to these people on the phone. Everything in writing, and keep good records. That's what I've done so far, and it's worked.

 

They are breaching OFT guidelines selling an account in dispute and if they do so without issuing you a Default Notice, they rescind the account altogether and it no longer exists - keep that under your hat until they sell it.

They will aslo be breaching the DPA 1998 by passing your personal data to a third party without your permission - and your permission should have been in an agreement they don't have.

 

That's the sort of stuff I'm trying to find out. I'm actually very relaxed about the proposed sale. It was worded as a threat, but in effect it's a white flag: an admission that they've got nowhere so they're selling the problem to someone else. I'm simply trying to decide two things:

1. By selling it do they potentially get themselves in trouble.

2. If so, should I warn them in advance, or just let them go ahead and shop them to the authorities afterwards.

 

I realise the OFT guidelines aren't law, but I've already used them apparently successfully so I only half agree with Angry Cat about the lack of protection for the consumer. Yes, the balance of power is weighted in favour of the banks etc - surprise - but even in my limited experience there is plenty that can be used to slap them down.

 

I've had £48000 of debt written off and have seen off banks and DCAs fairly easily

 

Blimey! Respect! Remind me never to lend you a fiver! :D :D :D

 

Thanks for all the advice: any more welcome.

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I would suggest waiting until the account is sold, and then when/if contacted by any buyer, advise them in writing that the Account is in Dispute (and send them a copy of the Account in Dispute letter you sent to Barclays BEFORE they sold the account).

 

That way the buyer KNOWS Barclays HAD ACTUAL KNOWLEDGE of the dispute when they sold the debt.

 

Will do it do "any good"? Maybe not in and of itself. However, battling with the DCAs is never (in my experience) a question of a "knock out blow". It is more a question of a long and tortuous battle of attrition - with the likely outcome for most people the DCA having a account that is "unenforceable" at law and the "debtor" stil being pursued - but confidnet in the knowledge he can never be forced to pay. A wierd sort of limbo.

 

In terms of the advice re telephone calls, I have NEVER spoken to a DCA on the phone, ad conducted ALL communication in writing. It is advise I would strongly urge on everyone

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