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Why Do DCAs Continue To Chase Old Debts?


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I have noticed many postings from people who are still being pursued by DCAs, for statute barred debts, i.e. where they have had no contact with their creditors for more than 6 years.

 

I came across a newspaper article recently, which may go towards explaining the DCAs actions:

 

http://www.dailymail.co.uk/pages/dmstandard/frame.html?in_bottom=http:%2F%2Fwww.thisismoney.co.uk%2Fcredit-and-loans%2Findex.html%3Fin_page_id%3D9&in_page_id=1804

 

It seems, that although DCAs cannot legally enforce statute barred debts, there is nothing in law to stop them from continuing to demand payment.

 

According to a spokesman from the Credit Services Association, which represents debt collection agencies, they can continue to "politely" lol request payment, (i.e. send threatening letters, make threatening telephone calls, or turn up on your doorstep) until such time as the debt is repaid.

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And if I have this right DCA's purchase debt very, very cheaply and then via illegal activity and dubious practice bully people into paying money, thus making them a fat profit out of others misery. Such practise is morally reprehensible and should be stopped now!

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It should be made illegal to pursue people after the debt becomes statute barred. Surely the fact that this is law should make it an offence to ask for something which they cannot legally claim. No doubt someone on here will take them to the cleaners sometime with a test case

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Hello,

 

 

I think it's because there is a difference between legally "claim" and legally "enforce".

 

Remember, the debt still exists.

 

 

Jeff.

What is the point of trying to claim something which you cannot enforce. To try and claim something which is statute barred you would have to have a reason for it. For these DCAs to try to claim something they would probably have to lie or mislead the alleged debtor.

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Guest ian cognito
I think it's because there is a difference between legally "claim" and legally "enforce".

 

Remember, the debt still exists.

 

Funny how the banks don't agree with that when someone claims 6 + years charges back!!

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What is the point of trying to claim something which you cannot enforce. To try and claim something which is statute barred you would have to have a reason for it. For these DCAs to try to claim something they would probably have to lie or mislead the alleged debtor.

 

They don't have to lie , I am sure many people will pay up on a statute barred debt just cos they owe it.

If you are being chased for a SB debt you are in a very good position to offer a low full and final settlement. After 6 years or so peoples circumstances may have changed and they are in a position to do this, and then put the debt to bed for ever. No more letters, empty threats etc

Consumer Health Forums - where you can discuss any health or relationship matters.

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They don't have to lie , I am sure many people will pay up on a statute barred debt just cos they owe it.

If you are being chased for a SB debt you are in a very good position to offer a low full and final settlement. After 6 years or so peoples circumstances may have changed and they are in a position to do this, and then put the debt to bed for ever. No more letters, empty threats etc

Whilst I agree to a certain extent that people should still pay their debts after the 6yr limit if they have the funds but on the other side of the coin why should these DCAs be allowed to continue to threaten and demand. After all the original lender has written it off and these greedy people are looking for a huge return on a debt the bought for pennies.

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Whilst I agree to a certain extent that people should still pay their debts after the 6yr limit if they have the funds but on the other side of the coin why should these DCAs be allowed to continue to threaten and demand.

quote]

 

They shouldn't be allowed to threaten at any stage in collecting but it happens. Fact is the debt stil lexists it just cannot be enforced in court.

 

After all the original lender has written it off and these greedy people are looking for a huge return on a debt the bought for pennies.[/

 

The original creditor would ave sold it on for a small %, and got back some return on the debt. The DCA have bought the debt at a price agreed with the origianl creditor and are making a profit because that is their business and they take the risk of being able to recover it.

Consumer Health Forums - where you can discuss any health or relationship matters.

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quote]

 

They shouldn't be allowed to threaten at any stage in collecting but it happens. Fact is the debt stil lexists it just cannot be enforced in court.

 

 

 

The original creditor would ave sold it on for a small %, and got back some return on the debt. The DCA have bought the debt at a price agreed with the origianl creditor and are making a profit because that is their business and they take the risk of being able to recover it.

 

 

Yes I know but its only human nature to fight against threats. Ive had dealings with 'decent' DCAs and have no problem coming to a sensible arrangement about paying them. But those that treat me like Im a bit of dirt do not deserve any respect and indeed the chances of me paying a statute barred debt to some of them is NIL

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I think it is a case of for every ten people who's debt is statue barred,

 

Some of that ten won't know it is statue barred and pay up.

 

The end result is the DCA gets some money and is laughing.

Completed:

Woolwich: Received £30

Intelligent Finance: Received £1100 after two years and approximately 20 letters, 6 pieces of hair and an eyeball.

Barclaycard: Received £90

HFC: Received £170

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To find article:

First click the link below:

 

http://www.dailymail.co.uk/pages/dmstandard/frame.html?in_bottom=http:%2F%2Fwww.thisismoney.co.uk%2Fcredit-and-loans%2Findex.html%3Fin_page_id%3D9&in_page_id=1804

 

Then enter "dogged by bad old debts" (including double quotes) into the Advanced Search box, at top right of the page.

 

Click Go.

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Consumer groups argue that debt collection agencies are bound by the Limitations Act of 1980, which says a creditor has only six years to take legal action. After that, the slate should be wiped clean.

However, Kurt Obermaier, executive director at the Credit Services Association, which represents debt collection agencies, disagrees strongly with the consumer groups.

He said: 'If you owe me £20, the fact that I can't sue you after six years doesn't mean that you no longer owe it to me.

'It does not finish the debt, and I can go to you seven, eight or however many years later and politely ask you to pay me back that money.

'If you refuse, I can politely warn you that I will be coming back to see you next week to ask you to reconsider.'

I suppose that means that when Kurt or his friends politely warn us they will be round next week to ask us to reconsider we can politely remind them of the law on harrasment, and trespass an that the likeyhood of their return visit possibly leading to them being spoken to re a possible breach of the peace.

  • Haha 1

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It does look like sheer desperation from Kurt in his ankle length leather trench coat, trilby and monocle, but then you have to consider the fact that he was hardly likely to say "Well we will try, but if people tell us to 'Bog Off' we usually do, because it isn't worth the time and expense and there are far easier targets to squeeze money from", which would be a far more truthful response. :)

HOIST BY THEIR OWN PETARD.

 

Blimey it works....:-)

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