When will DCA's start court action?

[DeRichleau]

Sounds a stupid question, but what I really mean is as follows.

Martin 3030 stated the following on another thread...

 

Its not unusual at all for a DCA to be starting Court action-these forums are full of examples including SB's although these days they are less likely to in view of successes by CAGGERS who have challenged them and won with costs,and also regulators warnings.

 

It has been my view rightly or wrongly for some time, that if a debt exists, the OC will be the one to start court action, and if they were going to do that, they would already have commenced proceedings, and not bothered messing about with a DCA.

Secondly if the DCA owns the debt then the OC must have thought the odds on collecting were less than even, and put it up for sale, in which case their interest in it has ceased and along with that the paperwork has ceased to exist as well (with a bit of luck)

Most DCAs are referred to as chancers in this forum, and presumably for these reasons, so by that yardstick how unusual is it for DCA's to start an action? I would have thought it's the last thing they want if they are working for a client, because they will not get their cut of the proceeds, (because it will be the OC who makes the claim) and it is an expensive option for a debt that has been sold on or is SB.

Absolutely no disresepect to Martin3030, or anybody else who is struggling with a DCA, and my mind is wide open to any comments that will put me right.

[dx100uk]

you have only got to read a few threads on bryan carter to blow any thoughts of logic out the window.

 

if a a cda were to goto court on a sold debt and or an sb'ed one then they already know they are on a hiding to nothing.

p'haps there is a reason for this question other than a hyperthetical one?

 

dx

[DeRichleau]

Yes and No, Just curious really on other peoples opinions. Moorcroft are trying it on but I am not that bothered at the moment.

[Fred Bassett]

Yes and No, Just curious really on other peoples opinions. Moorcroft are trying it on but I am not that bothered at the moment.

 

I've asked pretty much the same question before and not really got a definitive answer - maybe because there isn't one.

 

I think this depends on several things - is the DCA acting on behalf of the OC or have they bought the debt? If acting on behalf of the OC, they can't initiate court proceedings without permission from the OC.

 

If they own the debt, it's a different matter. Cabot seem to be very active in this regard lately and are twisting the various laws like no tomorrow and with some success.

 

If the debt has been sold, the big question must be - whey did the OC sell it? Then you get into areas of what they can write off, what they can't be bothered to chase, what they know to be unenforceable.

 

I tend to share the view that if it's got to a DCA, then the chances of court action are unlikely - except in the case of chancers like Bryan Carter, but I don't think you can ever be sure.

 

Regards.

 

Fred

[DeRichleau]

Thanks for that Fred, Its more or less what I have been thinking. By the way your posts are hilarious, and you have done more good than you probably realise, by relaxing worried Caggers and generally cheering us up.

[MARTIN3030]

Some good thoughts.

There can be many reasons why the OC has not commenced legal action and sold the debt on...I would imagine they look at each case and weigh up whether its commercially viable.Theres the Tax and write downs to consider too-is it more beneficial for them to offload ?

DCAs have been actively issuing proceedings for debts over the £750 threshold ..and in some cases ramped up the original debt to surpass it when it was less to begin with.

DCAs are not soley chasing debts they have bought from banks or credit card issuers,theres an increasing demand for collection by business.

Typically,a DCA will charge an initial fee of around £550 plus vat-which then gives their client access to a host of databases,through password protected accounts.

For preparing a Stat demand-they charge around £425.

They also take 20% (typically) in commission from any monies they collect.

Its not difficult to see.....a nice little earner.!

[Newborn]

There is also the financial status of the debtor to be considered too, as well as the responses they make to DCAs 'phone calls and letters etc.

 

If the debtor owns a house with identifiable equity then I bet a DCA would be keen to start proceedings. Especially if the debtor seems a bit naive on the legal front.

 

Just by proving a solid grounded knowledge of the law will, I think, put a DCA on the back foot.

 

Every letter I receive from Cabot is responded to quickly with knowledge gleaned from these forums and it seems to keep them quiet for a few weeks / months at a time.

 

There will always be business criteria behind the decision to start court proceedings, even if it's just to make an example of someone. So be polite and firm with your dealings with them (although it's tempting to be a bit 'caustic' at times) and keep them at quietly at bay.

[DeRichleau]

So to sum up, if you are living in rented accommodation, on benefits (or self employed) with a good knowledge (supplied by this site) of the law. Asking them to prove every claim they make, denying them access to your doorstep, and generally being as professional as possible about it, you are of their christmas card -sorry threatogram list, and are unlikely to end up in court.

Many thanks for your thoughts.

[MARTIN3030]

So to sum up, if you are living in rented accommodation, on benefits (or self employed) with a good knowledge (supplied by this site) of the law. Asking them to prove every claim they make, denying them access to your doorstep, and generally being as professional as possible about it, you are of their christmas card -sorry threatogram list, and are unlikely to end up in court.

Many thanks for your thoughts.

 

 

Thats about the top and bottom of it yes..of course once they have determined that you fall into those cats.

Problem is of course....when they get to the point of accepting they have no chance of recovering anything what do they do ?

They sell it on .....and the whole merry go round begins once more.

 

 

Edit-self employed perhaps not included,because they will assume that you are earning more than the next !

[Fred Bassett]

Thats about the top and bottom of it yes..of course once they have determined that you fall into those cats.

Problem is of course....when they get to the point of accepting they have no chance of recovering anything what do they do ?

They sell it on .....and the whole merry go round begins once more.

 

 

Edit-self employed perhaps not included,because they will assume that you are earning more than the next !

 

So tell me then Martin, could I sign over my half of the deeds to my property to Mrs Bassett? All the debt is in my name, not hers.

 

Regards.

 

Fred

[MARTIN3030]

Its arguable Fred-depends on whether theres joint liability or rights to offset.

But the terms and conditions that applied within the original contract will obviously end on termination of the agreement.

In many cases women are happy to take everything a man has without any threatened proceedings...so the DCA gets nothing but still has a roof over his head and his CD collection.

[DeRichleau]

Well I'll relax then... How does the song go?

 

'I started off with nothing, and still got most of it left' (Seasick Steve in case you dont already know)