Debt purchasers

[2Grumpy]

I see debt purchasers as generally circumventing people's rights and making an enormous profit.

 

I understand that their taxation position would be fairly low because even though they purchase debts at a low value, they wouldn't have to pay taxation on the increased value of those - because you don't pay tax on collected debts

 

debt purchasers usually claim property law applies to the purchase, so they purchase the rights but not the responsibilities of the debt

 

I was thinking that this might be at odds with their taxation position and that with a lawyers take on this, a bit of investigation, evidence gathering & company accounts, the tax man might take their toll on them

 

Just a thought, but that was how they got a gangster or few...

[huggy41]

i have decided that if a DCA buys one of my debts they will only get what they paid for it ie. 10-15% of the outstanding balance unless they would like to explain to a judge how it will be a loss to there company.

[cerberusalert]

I suppose certain debt collectors try to circumvent paying the HMRC full tax dues by registering offshore.

[2Grumpy]

I was thinking that if the information was available of the two incompatible stances, the taxman might take action against them

[sillygirl1]

As I've said before the Debt Buyers and Sellers Group need disbanding or heavy regulation, they obviously all have a vested interest in collecting on 'non performing delinquent distressed debt' and making it perform.

 

The biggest drawback they are facing now is the fact that consumers (or creditors) are now aware of the Statute of Limitations and therfore exercise their legal knowledge by refusing to pay up - if they paid up after the debt was on their records for 4 or 5 years with no activity then paid in full it would remain for a further period of time, therefore defeating the whole object of the CRA 'time limits'...

 

The whole buying and selling of debt needs heavy regulations, least of all stopping them 'moving' the date and amount of the original debt, or setting up a new record 'admin error - sorry....' then we might start getting somewhere.

 

The whole idea of 'buying' a debt portfolio for pennies then making pounds out of it is abhorrent in these stark financial times.

[debt4get]

many of us who contribute on CAG have been aware of this problem for years...the selling on of debts for peanuts allowing these parisites to operate after the original OC has in effect already had their money back through tax loopholes...I took no pleasure in being in debt but with the help of this forum have managed to get a handle on it, having a few victories along the way and now with anything left outstanding being statute barred....I would never put myself in the position of 'easy credit' I do not believe that this govt nor any previous govt has or have any intention of regulating this odious industry....its big business ...simple as...they will continue to bombard people with meaningless letters and phone calls...though I have yet to understand why ringing someone continuously who probably couldnt pay the original balance would in any way suddenly make them more financially secure to be able to service the debt....

[Fred Bassett]

In my opinion, debt purchasers should be opposed every step of the way. They are the boil on the backside of the 'credit industry'. This forum preaches that debt avoidance is a bad thing. To an extent I agree, but the rules change in my opinion once somebody like Cabot or Arrow Global get their grubby little paws on an account. Once that happens, debt avoidance becomes the name of the game for me.

Edited May 20, 2012 by Fred Bassett

[rockwell304]

In my opinion, debt purchasers should be opposed every step of the way. They are the boil on the backside of the 'credit industry'. This forum preaches that debt avoidance is a bad thing. To an extent I agree, but the rules change in my opinion once somebody like Cabot or Arrow Global get the grubby little paws on an account. Once that happens, debt avoidance becomes the name of the game for me.

 

Most of the posters are here as a result of reduced circumstances, loss of income, matrimonial issues, business failure etc. I detect very few who are avoiders although I'm sure they exist.

In my own case I made a couple of payment offers in writing to an OC - never received a response. Now that the account has been sold to a debt purchaser I will simply rely on the exact same legislation to defend myself that the debt buyer will use to pursue me.....not avoidance in my opinion.