BH sold debt being paid to DLC

[Wicked_witch]

Hi,

 

We have an agreement with BH to pay back our debt to them after defaulting due to my husband having to leave work due to a disability. We've always paid the agreed amounts on time, no CCJ or anything, but they've now sold the debt to DLC.

 

The debt is only £250ish now, so I'm hoping if we go about it in the right way we can pay the lot off for a good discount (will have to borrow the money from parents as we're stuck on benefits ). They've said they 'need' a statement of outgoings etc for that, but they can't insist on that without a court order as I understand and I don't plan to give them one single thing or piece of info I'm not obliged to.

 

Can you advise me on the best way to frame things in a letter for a positive outcome?

 

We actually offered BH £200 in settlement just a couple of months ago and they said no, they had to have the lot... now they've presumably accepted a much smaller payment from DLC. Smart bunch really

[firstship]

Was there a letter of Assignment from BH or DLC??

 

If DLC have purchased the debt then you will stand a much better chance of a Full and Final Settlement,at a much reduced amount.as you rightly say they will have purchased the debt for a small amount.

 

FS

[Wicked_witch]

Hi,

 

Yes, the letter says it has been assigned to DLC.

 

Should I write to ask for the copy of the loan agreement first off?

[Wicked_witch]

Right, sending the request for credit agreement etc and have added a line telling them not to ring us and communicate only in writing.

[firstship]

Good idea to get a copy of the agreement was it pre 2007?.

So you have sent the request to DLC,I am all for making them work hard as they now own the debt.

 

You also need a copy of the current statement to see how much they think you owe.

 

When it is all settled offer DLC 20% of the amount outstanding in F&F settlement,but before doing so consult us, as the wording of the offer is quite critical

 

FS

[Wicked_witch]

I do have an up to date statement from BH. Have sent the letter recorded now. Thanks for your advice, I will update when I know what's happening.

[Wicked_witch]

Right, after a hiatus because DLC first said we didn't need to pay for the agreement, then sent a reply demanding £1, we've had a letter back saying they are waiting for a copy of our original statement.

 

A couple of questions- first, they say that if they are unable to forward a copy of the original agreement they will be able to "supply a true copy of the document which will comply with section 77-79" of the CCA. Is this a different document or...what?

 

They also refer to a ruling 'McGuffick V RBS' which states that 'the bringing of proceedings is not enforcement', and this includes demanding payment. Again, I'm not sure what this means in real terms or how it's relevant?

 

It all sounds like empty vague threats to be honest.

[firstship]

As they own the debt they have 14 days to produce the original CCA if they don't and it is unlikely,send default letter to them.

 

The true copy,is their interpretation of what the agreement would have looked like,which they are allowed to do but they must also supply copy of the terms and conditions that where in force at the time you opened the account,plus copies of the up to date amendments.

 

Google the McGuffick v RBS case they refer to,it has validity.

 

They should not be able to take you to court without the original agreement,but a number of Judges will accept proof that you have been paying them as acknowledgement of the debt,wait until they have responded to your CCA and see what they produce.

 

FS

[Wicked_witch]

They are saying that if they haven't had it from BH within 21 days they will contact us again- how does that fit in with the 14 day window, and when would the 14 days begin please? because if it would be from the date they received our second letter with the PO attached, they've already had them!

[firstship]

The 14 days starts from the date you posted the CCA request,it is often referred to as 12+2 days.The 21 days is not acceptable, so send letter from site Library (default)

 

It appears you have proof of delivery

 

FS

[Wicked_witch]

We sent it recorded and anyway, they replied so can hardly deny having it! Okay, will look at the library, thanks.

[Wicked_witch]

Once the letter you recommend is sent, where do things go from there? Having read the McGuffick case, it seems they can still ask for payment, send default notices and even begin court proceedings, so is that the point to offer a full and final sum?

 

Thanks for all your help and sorry for all the questions!

[firstship]

Please wait for a response from the DCA.

Yes F&F would be appropriate but wait for the response, as this is a minefield your F&F requirements have to be worded correctly.

 

As the debt is £250ish, the DCA will have paid a little more for it based on the fact that you have made regular payments.

 

Please check your credit file and tell us what appears if anything

 

FS

[Wicked_witch]

I won't do anything without checking back here.

 

As far as I know, the BH debt shows as permanently 'more than 6 months in arrears' as although we have always made regular payments the older, full payments still show up as late. Other than that, my record is clean.

[firstship]

Ok we will need to take this into account should you decide to consider full & final,

 

Regards

FS

[Wicked_witch]

The letter was sent on the 21/10.

 

Now, my husband is getting very stressed about this and wants to make an offer to pay an amount before Christmas. Assuming I can't stop him before we get any more paperwork, how much should we be offering and will they expect us to lowball them (so refuse the first amount on principle) or should we offer the full amount we can pay from the outset? I know there are various stages to go through ideally, but if he gets very stressed he will just go behind my back and do it anyway, probably wrongly!!!

 

According to my reading, the debt does become enforceable once they do provide the proper paperwork, so what is the ultimate goal of stringing things out for now?

[firstship]

There is more than a chance that DLC may say they are unable to obtain the original agreement,they may produce a recon copy of what they consider the agreement may have looked like.There are a number of possibilities as to their response.

 

Based on the fact that you estimate you owe £250ish,you need to determine the exact amount,although you say you have already offered £200 and they refused,was the offer made to BH before the debt was sold?

 

What is the exact amount?

 

FS

[Wicked_witch]

Its £257.23 to be exact I will get him to hold on until they reply to the failed cca letter.

[Wicked_witch]

Oh and yes, the offer was made to BH a few months ago.

[firstship]

The fact that the debt has been sold(did you get letters of assignment from DLC and BH) DLC should be easier to deal with on a full and final settlement.

 

FS

[Wicked_witch]

Yes, we got letters of assignment. They wrote back yesterday to acknowledge our failed CCA request letter.

 

How much do you think we should be looking at offering?

[firstship]

Hi Need to wait and see whether they can produce a copy of the original signed agreement (not an application form or a reconstituted agreement) No original Agreement will give you an advantage,be patient and wait for the answer

 

FS

[Wicked_witch]

Okay, that's good to know and have told my husband too

[Wicked_witch]

They sent another letter today, but I literally have no idea what it said, because the dog got to it before we did :/ But my husband rang DLC up and after a lot of to and fro and talking to management, they've agreed to a final settlement of £61. They'll be sending a letter, so I'll update then and make sure it's all watertight.

[firstship]

Good sounds like a reasonable result,tell us exactly what they say in the letter when you receive it,because you will need them to mark your credit file as settled and you also need them to confirm in writing that they will not sell the balance of the debt onto another debt collection agency

 

FS