Lowell Finance And Related Idea !!!!!

[Vickicb]

That means that the halifax hav e written it off and have not sold it on. If they do then theymust inform you.

 

So that's it then? No more debt? wow

[FANTASY CHARGES]

Just To Give You All The Fact That When A Debt Is Sold Vat Is Chargeable On It So It Leaves A Trail In The Companies Accounts

Mbnasty Appealed Against The Govt & Lost Last Year ------

 

hang On Foreign Angle On Buying Debt ????? If The Bebt Is Sold Abroard Then There Is No Vat Hence 17.5 % Advantage To Foreigners Bidding ...... Which Looks Like A Good Headline For The Independant From Here .......

 

American Debt Is Terrible At The Moment Talk Of Sub-prime Lenders Going Bankrupt -- Usa House Prices Down 10 %

 

Hsbc Took A Was It 8.5 Million $ Write Off On Usa Loans Recently & Sacked Mr Big Usa

[pmhcfc]

Just To Give You All The Fact That When A Debt Is Sold Vat Is Chargeable On It So It Leaves A Trail In The Companies Accounts

Mbnasty Appealed Against The Govt & Lost Last Year ------

 

hang On Foreign Angle On Buying Debt ????? If The Bebt Is Sold Abroard Then There Is No Vat Hence 17.5 % Advantage To Foreigners Bidding ...... Which Looks Like A Good Headline For The Independant From Here .......

 

American Debt Is Terrible At The Moment Talk Of Sub-prime Lenders Going Bankrupt -- Usa House Prices Down 10 %

 

Hsbc Took A Was It 8.5 Million $ Write Off On Usa Loans Recently & Sacked Mr Big Usa

 

Cabot- japanese company Aktiv Kapital - Norweigan Hmmm

[FANTASY CHARGES]

MBNA Europe Bank Ltd v HM Revenue & Customs [2006] EWHC 2326 (Ch) (22 September 2006)

[tbern123]

That means that the halifax hav e written it off and have not sold it on. If they do then theymust inform you.

 

Sadly, that is not 100% true.

 

When a bank closes an account with an overdrawn balance, they must first pass an entry to clear the balance. They use the term write off, only as a reference for the payment.

 

When Banks write off debts, it does not have the same meaning as is being interpreted here. It only means that the debt no longer appears on their books. Banks actually do this for VAT and TAX purposes, I will find the information for you later..

[tbern123]

The banks write debts off their books for VAT bad debt relief and it is a legal process.

 

In relation to using the same argument in relation to unfair bank charges, this would not stand up I am afraid.

 

The whole basis of unfair bank charges is that the banks are not allowed to make a profit on a charge

 

Debt Collection Agencies, are only asking people to repay what they originally owed. The amount they paid for the debt can be as little as 3%, however this is totally irrelevant.

[tbern123]

Just a quick one. Banks are currently writing these debts off against their profits and then selling them on to debt collection agencies. this was confirmed in the recent barclays annual profits statement. They wrote of 2 billin quids worth of debts but at the same time there are dcas who have bought these debts off barclays and others . Is this illegal or something?

 

In this context, when Banks say they write off bad debts, what they mean is that they don't expect the debtor to repay the debt.

 

Banks have to set aside funds to cover bad debts otherwise they would have a huge hole in their accounts. I don't want to out a downer on this topic, I am all for reclaiming your rights and sticking up for yourself. But I would start a fight, unless you know you can win.

[Bailiffchaser]

Thats why we need a test case. Whos up for one ? Bearing in mind it would be small claim as you would split your claim up into 2 bits.

[tbern123]

As much as I hate to admit it, the DCA's aren't doing anything wrong.

 

Think of it this way, if you brought a car today for £500.00, but it was really worth £5,000.00 and you sold that same car tomorrow for £5,000.00. You would have made a profit of £4,500.00.

 

Have you broken any law ????

[Bailiffchaser]

This exactly what i mean. Unless anybody challenges this nobody will know what is right and what is wrong !!!

[dannyboy660]

As much as I hate to admit it, the DCA's aren't doing anything wrong.

 

Think of it this way, if you brought a car today for £500.00, but it was really worth £5,000.00 and you sold that same car tomorrow for £5,000.00. You would have made a profit of £4,500.00.

 

Have you broken any law ????

 

If that car was on hire, and/or subject to an agreement between the person you bought the car from, (i.e the original creditor who lent the money in the first place), ....they sell you the car for 500.00, claiming a wad from the taxman and their underwriters in the process...you then assume the rights of original creditor, in law...then you sell the car for 5000.00 without reimbursing underwriters and the taxman....then yes, it is illegal. Just needs someone to point out the fact. You have to be caught at it for anything to be done just like an ordinary robbery, theft, or fraud.

 

Not the best of examples, but I get your point.

 

Q) If it applies to cars and goods, why not loans/credit cards??.......A) Because the banks and finance companies pretty much regulate themselves, and these things don't get tested in court.

 

It can work to your advantage with a DCA if you sit quietly until the court docs are issued, then contest amounts and ask for full breakdowns of interest and charges etc. Tell the court you're not happy they only paid 3 quid for the 100 you now owe the taxman........

 

Silence is golden.

 

If more people did it, debt purchase just wouldn't be profitable and back to the 'good old days' of agents collecting on commission.

[ODC]

In this day of consumers rights and freedom of information you would think there must be a way in which the banks could be made to disclose how much they sell your debt to the leeches for.

 

On the same subject can anyone tell me that if say Cabot buy a debt for 10p in the pound and despite all their efforts have to pass it on to say crapquest do the sellit to them for less than the 10p they paid. I was just wondering because by the time it gets to the fag end of the DCAs it must be costing them buttons.

[Bailiffchaser]

That is why it is a tabboo subject !!!

[Bailiffchaser]

There probably is a way to do it. Someone has to fire the first shot. I would do it but i have a highly publicised case going on due to which i am tied up .

[Bailiffchaser]

What can i say. Consumer rights can be used against a finance firm if you really want. Whos first then ?

[Bailiffchaser]

i am due to go after lowell finance in afew weeks time. Anybody have any ideas ?

[dannyboy660]

Depends what you mean by going after them really.

 

I have a strange feeling you will have extreme difficulty getting them to court, or getting any sense out of them. They seem to back down or just ignore you, if you challenge them strongly enough.

 

The whole debt purchase thing is quite 'dodgy' as they well know, and provokes a lot of questions. It's been going on in the US for quite some time, but recently some States have been asking whether the system is fair to the taxpayer with private companies making profits from charged off debt already partly settled through the tax system. It was supposed to reduce the burden of bad debt, and protect banks and smaller lenders,.... not open a window for private companies to climb in and help themselves, which in effect, is what happened.

 

If you contested an action by Lowell on those kind of grounds, how would it fare in a UK court?? I think Lowell would back down, in much the same way banks don't want their charges tested.

 

The only person I know on here who has been taken to court by Lowell is Tifo. Perhaps he/she has an idea on how to go about it.

[dannyboy660]

"Loan Loss Reserves

Valuation reserve against a bank's total loans on the balance sheet, representing the amount thought to be adequate to cover estimated losses in the loan portfolio. When a loan is charged off, it is removed from the loan portfolio as an earning asset, and its book value is deducted from the reserve account for loan losses. Lenders also set aside reserves for a nonaccrual loan, in which interest and principal payments are no longer being collected. Recoveries from the liquidation of collateral repossessed from the borrower are credited to the reserve account. The Tax Reform Act of 1986 disallowed the tax deduction of loan loss reserves held by banks with assets over $500 million."

 

 

Looks like our American cousins caught on some time ago.

 

I don't have the time or patience to study the Tax Reform Act of 1986, not that it's much use here anyway other than an indication of what may be around the corner, but there were measures in place which took into account charged off debt and debt purchasers. Due for another update soon apparently, but not much info to be gained on the web. As if they don't want people to know!! No surprise it's possible to buy these debts for peanuts.

 

How does this work in UK?? Someone must have spotted it by now, or am I on a wrong track??.

 

No wonder the banks are in such a hurry to sell off the bad debts!!

[tifo]

i am due to go after lowell finance in afew weeks time. Anybody have any ideas ?

 

Good luck to you!

 

I have been after them for 3 months and all i get is emails and letters threatening to reply to my letter or email .... "i will respond tomorrow" or "i will respond next week". I get nothing.

 

The director i deal with also ignores many of the emails i send and it seems something harsher is now required.

[Guest JUMBOPOWERED]

bailiffchaser has asked me to update this thread.

 

I am currently in the process of suing lowell finance for causing me distress of all sorts by persuing me for a baseless debt.

[Sparkie1723]

Jumbopowered

Section 40 of the Administration of Justice Act....wrongfull pursuit of a debt....is a criminal offence that does have a civil remedy.

You could possibly ...most probably use that ...

 

sparkie

[ODC]

Go for it Clownell need their wings clipped Bar StewARDS

[Guest JUMBOPOWERED]

Trust me on this i cannot say what i am doing but you may have read in tuesdays paper that a woman sued halifax for stress and harassment under the protection of harassment act as she was repeatedly bombarded with phone calls etc.