Does a DCA charge interest

[superhooper]

Hiya,

 

I have a catologe debt of £2500 which includes all interest & charges (i didnt spent all of this but my limit is £1850 so after running into a little bit of difficultly my mortgage & secured loan came first so interest & charges mounted on this debt)

My question is if i let the debt be sold onto a DCA will they chase me for just the £2500 or will they charge there own interest?

My credit score is rubbish so the main thing is paying the debt A.S.A.P & the catologe company will just keep adding charges & interest.

 

Hope this makes sense & thank you in advance for your help x

[Tootles1971]

has it already been sold or is this hypothetical? If it is still with the original company, I would suggest you avoid it going anywhere near a DCA......

[superhooper]

Thanks for your quick response,

 

they want nearly £300 by 27th of may or it will go to a DCA. I really dont think i can afford this so wanted to no if a DCA would keep adding interest.

[count orlok]

have they produced a valid CCA?

[citizenB]

They can only charge their own interest if there is provision for it in the original terms and conditions. Suggest you ask for a copy of the original T&cs and a copy of the agreement/contract to be able to check.

 

So, have you been sent a Default Notice from the current owner of the account ?

[harrassed senior]

when did you take this account out? If you CCA the original creditor I do not believe they can pass it to a DCA until and if the CCA is satisfied.

 

http://www.consumeractiongroup.co.uk...request-letter.

[unclebulgaria67]

They can only charge their own interest if there is provision for it in the original terms and conditions. Suggest you ask for a copy of the original T&cs and a copy of the agreement/contract to be able to check.

 

So, have you been sent a Default Notice from the current owner of the account ?

 

I wonder whether this is something that has or should be looked into. How many DCA's are charging illegal interest ? Surely DCA's must be collecting payments on accounts where interest/charges have been incorrectly applied ! This could become like the PPI issue for the banks. If a weight of evidence is found, the DCA's could be forced (court/OFT ruling) to review all their accounts where interest/charges have been applied. This would cause them a massive headache, no doubt forcing some out of business. Just a thought.

[Tootles1971]

If a weight of evidence is found, the DCA's could be forced (court/OFT ruling) to review all their accounts where interest/charges have been applied. This would cause them a massive headache, no doubt forcing some out of business. Just a thought.

 

And a good thought!

[superhooper]

sorry i not been on but lost my internet connection cos my car fail MOT & gonna cost a small fortune.

 

Thank you for all the advance you have all given & i will CCA the creditors & check the T&C.

 

Will keep this updated with any process x

[cashins]

It's common practic for DCA's to add a 'wedge' on top of the original debt:

 

I have an old c/c that defaulted with a balance of £3k and over the years I have had DCA demands varying from that figure up to around £5k, as the ag is unenforceable they can go hang anyway.

 

You need to CCA the company to see if the thing is enforceable.

 

David

[Duffers Mum]

Cabot continue to heap the interest on mine despite my not having a sniff at an enforceable agreement, all they provided was a recon agreement which in itself is laughable. The DCA's tend to do exactly what they want and nothing ever seems to get done to change this.