DCA's Added Charges To A Debt

[garyca]

Hi All

Just wondering if anybody can help or give advice on a charge added to a debt from a DCA.

 

I recently had a debt of £1,600 Passed to a Debt Management Company who have immediately added £900 onto the debt, now making the debt £2,500.

 

My question is can they do this, it does seem excesive to me.

 

Regards

[IdaInFife]

no they can't unless there is a specific clause within the original agreement etc

 

a debt management company is not the same as a dca so can you clarify?

 

what was the orignal debt for ? loan or credit card etc

who was it with?

 

who is it with now?

 

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.

 

[garyca]

Thanks for the quick response

 

The original debt was for a loanwith Xtra Finance.

They passed it onto a company callked DACS who on the letter i recieved from them are a Debt Management Company.

 

They do have an OFT Reg Number.

 

Regards

[BankFodder]

no they can't unless there is a specific clause within the original agreement etc

 

a debt management company is not the same as a dca so can you clarify?

 

what was the orignal debt for ? loan or credit card etc

who was it with?

 

who is it with now?

 

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.

 

 

 

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

[garyca]

How are we suppost to know what a reasonable charge from a Debt Collector or Agency is.

The guides don't really say.

[Bazooka Boo]

The only DACS I could find are these?

Debt Help in East Yorkshire - Debt Help in Hull, HU9 4LN, DACS

 

Have you got an address or web site for them?

 

Are you certain it says on the letter they are a Debt 'Management' Company?

I'm not disbelieving you, just that the original creditor (OC) is not allowed to pass your details onto a DMC.

 

Is there any way you can scan and post the letter on here, removing all ID, addresses, bar codes etc.

 

As for the Charges, and fairness, two words which should not be in the same sentence really, but when you signed the original agreement, it will have stated in the small print that a late payment charge, for instance, will be £12, and by signing the agreement you agree to this.

 

Now if this DACS has just dumped their own 'fees' or 'charges' onto you account, then you would not have agreed to this, therefore they are unlawful charges and you will not be expected to pay these, in fact you DO NOT have to pay them.

 

No Judge in the country will ever allow them to inflate the original debt with fabricated costs.

 

If you can give us a bit more info as to thes DACS people that will be very helpful, Cheers;)

[garyca]

The company is called DACS. (Debt Advisory Collection Service)

Address:15 Annandale Road, Hull, HU9 4LN

 

In the letter it states: We are a Debt Management Company and they are registered with the OFT.

 

 

Regards

[Bazooka Boo]

Well Well Well!

 

My apologies for doubting you Gary,DEBT ADVISORY COLLECTION SERVICE, Debt Adjustment & Management in Hull HU9 4LN, » Yell.com

 

I'll do a little more digging to find out exactly what they are. But in the first instance, is it these guys who you had the original loan with?

Home : xtra Finance Hull Cheque Cashing Gold Buying Company

 

Funny how they're in the same county!

 

I'll do a little more digging then get back to you.

[Bazooka Boo]

WebCHeck - Select and Access Company Information

Companies House details.

 

Having a problem paying your bills? We negotiate with your creditors.Debt collection service.. Credit management. Private clients only.. Flat rate charge

Debt Adjustment And Management in Hull local business listings - Yell.com

 

Well the above link lists them as Debt collection, and Debt Managers??

 

Extremely confusing, I can't find them on companies house register, what number have you got for them being registered with the OFT (dacs that is)

[garyca]

Cheers Bazooka Boo

Here's the details

I am from Hull by the way. LOL

Application / Licence Details

 

 

 

Licence Number:0629057

Licence Status:Current

 

Current Applicant / Licensee:

 

Name Mr Graham Frank Nutter

 

Categories:

 

Consumer credit Debt collecting Provision of debt-adjusting on a commercial basis

 

Right To Canvass Off Trade Premises:No

 

 

Trading Name(s) (Current):

 

DACS Debt Advisory Collection Service

 

Issued Date: 28-Jul-2009

Date Maintenance Payment Due: 27-Jul-2014

 

 

Legal Formation:

 

Sole Trader

 

Nature of Business:

 

Investment/Financial Advisers

 

Current Address(es):

 

Address TypeAddress Principal Place Of Business15, Annandale Road, Greatfield Estate, HULL, East Yorkshire, HU9 4LN, United Kingdom

[loobyloo85]

It seems strange for a creditor to pass your details onto a debt management company without your consent, only for them to add extra charges on - this doesnt really make sense, as puting the extra charges on is not going to help you.

Have you written to the original creditor to find out exactly who your debt is being dealt with? This way you will get an answer direct and will know who to make your payments to, and what the debt management company are all about. If you did want a dmp, there are many other companies, unlike this one, who do not charge x

[Bazooka Boo]

It is Wrong, so wrong in fact that it is against the OFT debt collection Guidelines, and must be reported to them immediately.

Deceptive and/or unfair methods

2.7 Dealings with debtors are not to be deceitful and/or unfair.

2.8 Examples of unfair practices are as follows:

f. passing on debtor details to debt management companies without the

debtors' informed prior consent