Lets start a DCA

[felixflyer]

CAG or a cooperative of members should start there own DCA. We could collect on behalf of people on here.

 

Imagine all these accounts that have been in dispute due to no CCA etc. These have been sold on and passed from one DCA to another. Nobody is paying yet they go round and round being sold at something like 10% of the outstanding balance. Meanwhile people have defaults etc. for 6 years.

 

Supposing a new DCA approached the latest holder of these accounts and offered to buy them for 12%. The DCA would accept as long as the account had been uncollectable for some time.

 

This new DCA would already have an agreement with the account holder that they could pay the 12% charge for the account. The account would then be in this new DCA's name and the record including any defaults etc. could be removed from the file.

 

Even if this was done by a private company, if they agreed in advance and charged say 15% for an account that cost them 10% then they would make 5% risk free. The account holder would be free of the debt and any bad history and the previous DCA would have got rid of an uncollectable debt.

 

What do you think?

[unclebulgaria67]

Need to flesh the idea out a bit. Would any creditor sell to a DCA that was set up as you suggest ? I think you would find that they would not wish to do so. I don't think there is an open market for debts and that they are marketed to selected companies that are member of the debt buyers group.

 

Plus I think that debts are all risk rated to a certain extent and you have to take a range of debts on. The debts that you could buy for 12% might not be the best risk and you would get the same issue, with people not making their payments.

[felixflyer]

You would need to do this as two seperate companies. One buying the debts and another set up to pay them. You would offer to take on only the debts that cannot be collected by saying you specialise in collecting debts with no CCA etc.

[renegadeimp]

Creditors only normally use DCA's that can offer or even guarantee the highest rate of return. If they saw that the DCA was regularly agreeing a very low repayment amount with debtors, theyd soon stop using them. The Creditor wants their money and as fast as possible. If they cant do that, then they would simply sell the debt for peanuts and write it off for tax.

[sillygirl1]

Where would you get the money to buy the debts in the first place?

 

Who would be the responsible person in charge of data etc etc etc?

 

How would you pay the CCA Licence fee needed to set up the DCA in the first place?

 

Not as simple or straightforward as it seems.

[unclebulgaria67]

The only way it would work is to offer a top price for buying the debt and then this new nice CAG DCA would just start acting like some of the DCA's we see on these pages. The only difference might be that it would operate on a not for profit basis and would rely on people maintaining payments at the agreed level to cover all costs. But you would still have people not paying and all the usual mess.

 

As Sillygirl suggests you would need a few million to start such a company, as you would need premises and staff, plus all the other necessary expenditure.

[renegadeimp]

I wouldnt say a few million, but certainly a good few hundred thousand GBP.

[Fred Bassett]

It would be better to get the law changed so that it was illegal to sell debts. Imagine being able to put the likes of Cabot virtually out of business at a stroke. That way banks etc would be forced to deal with their creditors and maybe then the discounts would start flowing. Let's face it, by the time it gets to DCA stage, the lender has usually had their pound of flesh.

[Conniff]

I reckon I could russle up some really abusive letters to send out.

[unclebulgaria67]

I reckon I could russle up some really abusive letters to send out.

 

Could you imagine the puzzled faces at CSA, when a CAG DCA applied to join them.

 

Also would be great turning up at the annual awards ceremony and perhaps sponsoring a new category of award. Dopiest DCA of the year award.

[Fred Bassett]

Could you imagine the puzzled faces at CSA, when a CAG DCA applied to join them.

 

Also would be great turning up at the annual awards ceremony and perhaps sponsoring a new category of award. Dopiest DCA of the year award.

 

There would be a lost of very strong contenders for that one.