DCA's offering a discount

[zimbob]

I've been doing a lot of reading lately, and the members of CAG are the best family I've ever had Thanks one and all.

 

I saw a post before, that I can't find now, that pretty much said that if a DCA offers a substantial discount on what you may, or may not, owe

then the DCA knows the action may not be enforceable.

 

I've had a DCA offer me 70% discount if I call up and pay NOW!

How they came to the figure that they say I owe them is another story, but is this true?

 

A DCA is a business so how do they write off 70% of what they claim is owed?

 

I'm sort of hoping that I will also get a step by step from load/credit card to DCA process here and an insight to how they write off money.

[renegadeimp]

That debt is bad and unenforceable. Simple as that.

 

They probably bought it for pence in the pound. They know its a bad debt but hope you dont. So they offer you a huge discount so it looks like theyre doing you a favour.

Edited July 28, 2013 by renegadeimp

[zimbob]

Thanks renegadeimp (cool user name btw)

I'm not disputing that I owe money, just wondering how they got to the final amount and why their demand is not enforceable.

I'm thinking that if they chased for the true figure they would have more chance of seeing the money.

It's was a loan for £10k, I paid £204 every month for 3 1/2 years, no insurance on the loan, and now they're demanding just over £15K!

I'm hoping for some insight into these peoples callous brains, because with an understanding I can fight my corner better.

 

[BRIGADIER2JCS]

Before accepting that this debt is unenforceable the following needs to be done.

1. Check your credit reference files, to see if the debt shows.

2. Check the default date.

 

When did you stop payments?

[sequenci]

That debt is bad and unenforceable. Simple as that.

 

They probably bought it for pence in the pound. They know its a bad debt but hope you dont. So they offer you a huge discount so it looks like theyre doing you a favour.

 

There may be some truth to this, but it's probably not always the case.

 

Debts do indeed to get bought and sold - often for a few pence in the pound. You cannot assume that the debt is unenforceable, only a fool would make such an assumption. A substantial reduction should, though, trigger the thought to investigate the debt further - are their enforceablity issues? Is it statute barred. That sort of thing.

 

If you do decide to obtain a copy of your credit file, it may alert any other creditors as to your whereabouts. If you've moved around or if you've old debts that could be dormant it could reawaken things, so to speak.

 

When did you take this loan out?

 

Do you have other debts?

[renegadeimp]

Ok let me reword it. If they say they are offering 70% discount but must pay it NOW, then it is 99% likely to be unenforceable. So the paperwork needs to be chased up. We've seen it too many times for it to be different.

[sequenci]

Ok let me reword it. If they say they are offering 70% discount but must pay it NOW, then it is 99% likely to be unenforceable. So the paperwork needs to be chased up. We've seen it too many times for it to be different.

 

take out 99% and replace with 'there could be a distinct possibility'

 

Worth investigating further for sure.

[Peterbard]

I would agree. Blindly paying up would not be a sensible course of action here. You need to check everything, as there is a good chance they cannot collect it, which could be a host of reasons.

[BRIGADIER2JCS]

There may be some truth to this, but it's probably not always the case.

 

Debts do indeed to get bought and sold - often for a few pence in the pound. You cannot assume that the debt is unenforceable, only a fool would make such an assumption. A substantial reduction should, though, trigger the thought to investigate the debt further - are their enforceablity issues? Is it statute barred. That sort of thing.

 

If you do decide to obtain a copy of your credit file, it may alert any other creditors as to your whereabouts. If you've moved around or if you've old debts that could be dormant it could reawaken things, so to speak.

 

When did you take this loan out?

 

Do you have other debts?

 

 

Checking ones own Credit Reference Files DOES NOT alert anyone creditors or DCAs, you personal checks are seen only by you the data subject, this old wives tale has been around for years and has no merit!!

[renegadeimp]

I think he means that by moving around, youd need to give them up to date info which would be reflected on your file.

[Peterbard]

I think he means that by moving around, youd need to give them up to date info which would be reflected on your file.

 

I agree, added to which that could then bring back to life other debts which the OP may want left in the past.

[sequenci]

Checking ones own Credit Reference Files DOES NOT alert anyone creditors or DCAs, you personal checks are seen only by you the data subject, this old wives tale has been around for years and has no merit!!

 

Are you sure, as one of the bossess at Experian tells me differently. If there are old creditors and someone makes a fresh application for their file - the old creditors will be alerted should they subscribe.

 

Or is there something I'm missing?

[BRIGADIER2JCS]

Over 25 years of using ALL the CRAs and most of the specialist agencies too it has always been confirmed that checking your personal credit files does NOT leave a footprint that is seen by anyone other than the data subject.

[BRIGADIER2JCS]

The Alert System you refer to applies not to personal searches, creditors and other such as myself who subscribe will be alerted to account changes relating to data subject that are of 'professional' interest to them, e.g. a known serial bad debtor making numerous credit apps or acquiring large loans or moving house.

This is a subscription service.

[Peterbard]

Yes i can confirm that if you move address for instance and check your file from your new dress the credit agency WILL share that information with any other third party that searches your file, this is a fact I am afraid. If you ask them they will tell you themselves.

[sequenci]

Over 25 years of using ALL the CRAs and most of the specialist agencies too it has always been confirmed that checking your personal credit files does NOT leave a footprint that is seen by anyone other than the data subject.

 

I would generally agree, but that wasn't really what I was getting at.

 

If someone applies for their credit file - certainly for the very first time that they do - creditors that subscribe to that particular agency could be alerted. So think about when people on here tell individuals to obtain their credit file - what do you think might happen? Depending on an individuals circumstances I think telling someone to get their credit file could be extraordinarily risky advice.

 

I can't imagine information would be shared evey time a fresh new credit file is created - so if some people check their files regularly I couldn't imagine info would be shared every time - that would be pretty inefficient.

 

These agencies are a business, how much revenue do you think they create by the sale of information to other organisations? Certainly far more than from charging the public to access their credit files, that's for sure. I've visited Experian enough times to know that they are doing very well for themselves. In this day in age information is king although whether or not that's a good thing depends on what side of the fence you stand.

 

I guess we can agree to disagree on how things work - I trust what I'm told by the very organisation that processes the data.

[SWLABR9]

Why?

[BRIGADIER2JCS]

This old wives tale is getting another totally unnecessary and misleading airing.

 

Just what is an individual checking their personal data on a CRA file going to alert anyone to, it does NOT leave a footprint viewable by anyone else, as said the subscribed alert system relates to credit apps and the like and also public information, CCJs for example.

 

The CRAs personal data checking facility is invaluable in todays financial chaos and it is totally wrong to say this is a risk

 

I too believe the assurances I'm given by the CRAs as a professional user of the agencies, I would be failing in my duty to the people I advise if I was not confident of this.

I think you are mixing the subscribed alert system for business users.

Edited July 30, 2013 by BRIGADIER2JCS

[Peterbard]

 

I guess we can agree to disagree on how things work - I trust what I'm told by the very organisation that processes the data.

 

Yes me too.

[sequenci]

I think you are mixing the subscribed alert system for business users.

 

I only work in consumer debt, Brig.

 

The CRAs personal data checking facility is invaluable in todays financial chaos and it is totally wrong to say this is a risk

 

As I said earlier, it depends on the circumstances. Here's a case in point: If someone has lots of old debt which they know is getting on for a good 4 or 5 years old - wouldn't you agree that telling someone to get their credit file could cause the old and potentially dormant creditors to start chasing the debtor again, thus potentially impacting the possibility of the debts becoming statute barred?

[BRIGADIER2JCS]

Check Credit Files it is the most useful tool in monitoring your credit accounts and will also alert you if DCAs are searching your file, they cannot see that you have searched personally.

[zimbob]

Interesting. Very, very interesting.

This DCA sent me a letter saying they had traced me through Experian, gave an address I lived at in 2006 and am I the same person blah blah. This struck me as odd, as I had continued to pay on this account until 2009. Anyway....

I sent an SAR that wasn't responded to within the 12 + 2 days, then I complained. I received a letter saying complaints need to be lodged using their form and ignored it. Today I received the attached letter.

Where to now?

Ignore and wait, or hit them with some more stuff?[ATTACH=CONFIG]45469[/ATTACH]

[BRIGADIER2JCS]

A SAR has a time scale of 40 Calendar Days, a CCA request is 12+2 Working DAYS

[zimbob]

Let's try that file again....

[zimbob]

This is the letter I sent.

SAR or CCA?

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the original credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

 

I expect you to comply fully and properly with this request, within the statutory time limit, which is 12 working days. You are reminded that should you fail to comply with my request; the provisions of s.77 will apply.

 

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

 

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection From Unfair Trading Regulations 2008 (CPUTR).

 

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

 

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.