Can A Dca Add Interest?

[MRMURPHY]

Can they add interest.

 

Story so far: Credit card with Citi, defaulted, debt sold to cabot.

It was stated debt was £4500 approx, and stated cabot financial paid £890 for it.

 

Firstly CCA'd cabot. Agreement was late (3months late, and when it came was not signed.)

 

In a dispute with citi over charges, they sent cabot £225.

 

Rang cabot, and debt has now risen to £5500. Interest was added, they say they have a right to addinterest.

 

Cabot are not pestering me, but i wanna get the debt, sorted, settled etc, and default removed.

 

So what do i do?

[rory32]

If the DCA are not the owners of the debt they can not add interest to the debt, as there is no contractual liability for this, nor can they add their own administration fees to the debt. The only thing they can add to the debt is court costs.

[MRMURPHY]

They are the owners of the debt.

 

However, the agreement was not signed by the original creditor.

[rory32]

By agreement I asume you mean the copy of the consumer credit agreement? If this is the case the agreement has not been executed and is non enforceable. Perhaps you should be asking the DCA to write this debt off rather than worrying about them charging you interest.

[MRMURPHY]

I have tried that already, letters etc.

 

Would juust like a solution to end it, ie remove from credit file, remove debt etc..

[rory32]

Have you reported them to Trading Standards and the ICO?

[diskmandave]

Have you reported them to Trading Standards and the Information Commissioners Office?

 

And requesting their complaints procedure with a view to going to the FOS?

 

Regards, Dave.

[lookinforinfo]

You need to write to Cabot by recorded delivery, and keep a copy of your letter.

Point out that as they did not send the executed copy of the agreement as

required under section 77 and 78 of the Consumer Credit Act 1974, they have

committed an offence. And until they can produce the correct copy under

the Act, the debt is unenforceable. In addition, from the time the default occurred, not only can you not be pursued for the debt, but they cannot

charge interest either.

Moreover, should they have added a default to your credit file then you should ask them to remove it since they have no mandate from you to process your data. Then threaten them them with a complaint to Trading Standards if they do not accede to the points in your letter.

[MRMURPHY]

I will do that straight away, and get back to you.

[MRMURPHY]

got reply today:

 

a) we purchased debt, & rights not duties, to collect debt

 

b)cabot is not creditor for purposes of cca, and therefore no obligation to supply copy ofagreement

 

c)they say only a creditor should provide executed agreement

 

d)sec 77 does not apply, as its a credit card, not loan

 

e)my 2 previous requests (almost 9 months ago) ie my £1x2 are to be refunded because they were processed in error?????

 

f)unfortunately cabot cannot remove any entries with the cra, as the entries are accurate and as we are required to do so for legitimate interests pursued by us..

 

g)furthermore under the terms of the original agreement, you consented to info being disclosed to cra's

 

Jane Rodemark

Customerassurance team leader..

[Vampyra]

Excuse me while I LMAO!

 

Write back saying the clock is still ticking and they MUST supply the CA. Then stand back at a safe distance and check the fireworks go off!

[MRMURPHY]

are they definitely wrong in what they aresaying?

[rory32]

a) we purchased debt, & rights not duties, to collect debt

 

So it's not an absolute deed and is completely unenforceable.

 

b)cabot is not creditor for purposes of cca, and therefore no obligation to supply copy ofagreement

 

Actually it's a different part of Cabot that's the creditor, so they are technically correct.

[lookinforinfo]

I would write and give them a choice. They have not produced a copy of

the executed agreement. They have committed an offence. They have

given an undertaking to the Credit Reference Agencies that they have the

permission of the debtors before processing data via the CRAs.

As they cannot provide the original document, they have no proof that they

have your permission to process your data.

So they either remove your data with the CRAs and accept that the debt is

unenforceable and write it off, or you will complain to the CRAs that you

have misled them.

Tell Cabot that if you report them to the OFT, they will face receiving a

criminal record and a fine of up to £2500-they take a poor view of delays of

up to three months and still not complying with the Act. And you believe

that the contents of your last letter are grounds for believing that the OFT may well take the view that Cabot are not fit and proper persons to hold a Consumer Credit Licence.

 

See if they are quite so cocky in their next letter.

[diskmandave]

Actually it's a different part of Cabot that's the creditor, so they are technically correct.

 

Doesn't Section 189 say they have to provide, OC or not?

[MRMURPHY]

they did produce the original agreement, but it was not signed by creditor.

 

Suppose this means its unexecuted?

 

therefore they have still not complied.

 

Spoke to trading standards before, but they said cabot don't have to comply.

 

Trading standards, belfast.

[rory32]

Sorry Dave, meant to only quote the first part of their statement. Agree with you that they need to provide the agreement and are just trying to sidestep their obligation. I think s175 covers it.

[diskmandave]

Spoke to trading standards before, but they said cabot don't have to comply.Trading standards, belfast.

 

Get in touch with the Trading Standards in the town/city that the DCA is writing to you from then. They may have a more educated view of matters, after all, if your TS's pulled their fingers out they would have passed it to their colleagues in the correct town in the first place.

 

Regards, Dave.