At a fork - Overdraft defaults & DCA response

[OneStepLeft]

I have recently had a response from a DCA regarding a CCA I sent some time ago, so I am now faced with a decision on how to proceed and I would really like to draw on the experience here.

 

A quick background, The issue I have is with the placement of a default on an overdraft. I never got a notice of default (if I had I would have paid up). I fully intend to pay this debt subject to removal of the defaults from my credit file.

 

After being refused a credit card, I checked my file and saw a default form the bank. It was marked satisfied - partial settlement (so a DCA bought it and the bank got a little cash).

 

I CCA'ed under the 77/78 the bank, who passed my file to the DCA (or the parent company of this DCA) who wrote back saying they didn't know what the account was and it wasn't anything to do with them - double grrr.

 

The first default was then joined by a whole new default for a DCA for the same debt - grrr.

 

So I then wrote to the bank complaining about the cock-up, asking them to confirm assignation of debt, and provide me with a copy of the default notice, and I pointed out the duplicate default which was not allowed under the Data Protection Act. At the same time I CCA'ed the DCA under 77/78 pointing out the same things, asking for a copy of the default as I now believed it was them who owned the debt.

 

12 working days and 30 further days passed and then I had a letter through from the DCA in response to my letter enclosing documents as requested and asking me to call their specialist team (not that stupid). The document was my application form for the current account with just my signature on - not a statement of account which they are obliged to do, and obviously not a copy of the deed of assignation, or a copy of the default notice etc.

 

So what now? Do I complain to all the relevant parties and/or do I write back and offer full settlement in return for the removal of the default as they clearly cannot produce anything at all. Problem is that even if the DCA agree the bank presumably still holds the data controllers rights for the first default - getting both to agree is going to be hard.

 

I am assuming that they cannot enforce this without a court judgement now, but interest is still accruing. It's a few hundred quid in total, so its the presence of a monkey on my back rather than the size of a monkey thats annoying.

 

Any advice appreciated on how to deal with this. It would be so much easier if it was just one party.

 

Thanks

 

OSL

[spiritgirl59]

Hi OSL

 

Hmmm I have read this one a couple of times and had a think about what I would personally do in this situation. Please note I am not legally qualified, I can only talk to you from the personal experience I have had with banks/DCAs. In any case this response will bump up your thread so that others will take a look at it and come back to you with advice.

 

I personally would now write a further letter to the bank itself. I would make an official complaint as to how this matter has been handled.

 

Send your letter of complaint via Recorded Delivery and put in it the whole story of what has happened.

 

Stress that you never received a Default Notice from them regarding your overdraft so are surprised to find one on your credit file. Since it was the bank who have passed this account to the DCA I would insist to them that they now claw it back, with a view to the matter being settled sensibly and amicably "in house".

 

As you say you fully intend to pay up, and I would mention that you wish to reach a settlement once your complaint has been satisfactorily dealt with, but I wouldn't pay anything until they have sorted everything out to your satisfaction.

 

If the DCA write to you in the meantime you can write back and tell them you are in correspondence with the original creditor as this matter is in dispute.

 

I hope this helps.

 

Best wishes

Spiritgirl

[OneStepLeft]

Thanks Spiritgirl!

 

Can a debt be clawed back like that, now that the DCA has paid a miserly sum for it?

[rory32]

This may be of interest Remove Default Notices on a Credit File - We show you how

[OneStepLeft]

Hi rory,

 

many thanks for that - that letter was the first one I sent to the back right back at the beginning. It was the one passed on to the DCA who then denied ownership.

 

Since finding this place my strategy changed somewhat and unfortunately unlike the example from that page I haven't settled and it si not a single default

[OneStepLeft]

Okay so I am going to write a letter to the bank.

 

Can a bank claw a debt back like that? And get the DCA to remove the 2nd default?

[OneStepLeft]

Okay, update time

 

As it turns out, I did not write another letter to the bank, but eventually received a response to my last letter to the bank regarding my complaint. It was a bit of a "canned" response, and stepped over the actual point I was trying to make, but asked for a copy of my credit file with regards to the duplication.

 

Anyhow, time has been tight and I never got round to replying, but I checked my file today and the bank default has been removed anyway which is a bit of a bonus.

 

So this leaves the DCA default in place and everything how it should be, excluding the way the default was added in the first place of course.

 

So now I think my only option is to write to the DCA offering a settlement conditional on the removal of the default due to the fact nobody has been able to supply me with anything whatsoever relating to the account other than the original application form for the account.

 

Any advice? Would I need to do this via a solicitor?

 

Thx

[NailPost]

I would never pay anyone anything unless I am certain they have the right to my money.

 

In this instance you have CCA'd a greedy debt collector who has ignored your request which carries with it legal obligations. They are in default and cannot proceed to enforce without it. You have the upper hand. You could write to them, pointing out the error of their ways, and asking them to confirm they will not be taking any further action and remove the default on your credit file. Should they not do so you could then start making complaints to all and sundry with the threat of legal action to enforce your point of view.

[OneStepLeft]

Thanks for your reply, Nailpost!

 

I know what you are saying, but how can I be certain that the DCA has the right to enforce the debt? What could they supply me to satisfy me other than what they have already? Even though it was just the application form they sent, my issue here is not forcing them to prove it via a seemingly unregulated industry, but to correct the fact I never should have had the default in the first place.

 

Now that the bank have corrected their mistake in reducing the number of defaults from two to one, I ultimately want to pay the debt. I would not feel comfortable getting off on a technicality, and you can bet your bottom dollar, the DCA will not respond with the desired result to a letter requesting they stop chasing and then remove the default - they'll only do that if baited with payment. Complaining seems to do nothing having listened to everyone else.

 

I'd be a lot happier not paying the DCA any money (given that the OC won't get any of it now, and the DCA have not acted ethically), but I cannot see it working out like that