DCA closed account - OC reinstated default with CRAs

[Osiris01]

Hi,

 

I'm in need of a bit of advice and hope someone here may be able to help.

 

A year ago, Lowell bought a debt from a credit card. The credit card company updated the default on the CRAs as 'satisfied' and Lowell created a new default. Since I disagreed with the debt, I requested a CCA from Lowell. After a couple of months they wrote back to me telling me that the OC no longer had any record of the account and that they (Lowell) were closing the account. It also stated that the account will be removed from the CRAs.

 

I have just done a search and the default from Lowell still remains (although I suspect that when I chase it up, they will remove it eventually). However, the default from the OC has been reinstated - it is no longer marked as 'satisfied' and the full amount is recorded as owing.

 

I may be a bit naive here, but I assumed that since Lowell had purchased the debt, the OC were no longer owed any money. If Lowell purchased a debt without the necessary paperwork to enforce it, would they not be responsible for any loss if the alleged debt was not paid? I was under the impression that if the OC sold the debt, they then relinquished any future claim to it.

 

Can anyone put me straight on this?

 

Many thanks.

[Bandit127]

DCAs do not purchase debts. They purchase the rights to them under an agreement/deed that allows them to claim payment. There may be clauses in that agreement that mean they can return it under certain circumstances.

 

That is what may have happened in your case.

[citizenB]

For how long has the Default been registered ? They cannot put a new default date, it can only be updated from the original date..

[Osiris01]

Thanks for the replies.

 

The default date is the original date, so nothing amiss there. I didn't realize that they could hand it back to the OC, so I guess I'm back where I started from. If the OC hasn't got any record of the agreement, can they really just keep a default record with the CRAs? Presumably, they'll just keep selling the rights to other DCAs for the next 4 years?

 

Thanks again.

[citizenB]

It is very likely they will try and pass it on.. as when the new DCAs send you letters.. simply respond by advising that this account is subject to an unresolved dispute with the original creditor .. you could further advise that the account is being passed round like a pass the parcel and yet the OC continues to attempt to offload to new DCAs..

[Bandit127]

CB is spot on.

 

They will not advise any new DCA of your dispute or the status of any agreements (or lack of them). The new DCA will have no information that prevents them from proceeding to a CC claim (if that is what they decide).

 

Prepare a template letter simply advising any new DCA that:

The account has been in dispute with (OC) since XX/XX/XXXX due to the lack of an agreement that complies with the CCA 1974.

The account is unenforceable.

You are fully aware of OFT guidance on this.

Therefore, all recovery activity will cease on this account with immediate effect.

 

Send it out on first contact with a new DCA.

[Nagasis]

If lowell bought the debt there should have been a notice of assignment. If they then sold it back shouldn't there be a new notice of assignment?

I would imagine its important to know who actually owns the debt, oc or lowell.