debt sold to DCA - who should receive payment from the bank?

[tifo]

I've made charges, PPI and default compensation claims with my ex - credit card providers.

All these complaints were made through the Ombudsman and after waiting 6 months for a decision, i have some offers.

But the banks want to pay the DCA my charges, PPI and interest refund as well as compensation in a few cases.

I have argued my point with the Ombudsman but they state that the money should go to the DCA as i haven't paid it to the bank. But i am saying i owe nothing to the bank now and the DCA is a third party to this. Also, that i want the money to be able to use it as a settlement amount with the DCA.

After nearly a year of fighting and argueing with the bank and FOS, i don't want all the refunds to go to the DCA as i would get nothing.

None of the DCA's have complied with a s.78 request and have been in default and offence for many months now. By paying them my refunds, the bank is prejudicing my position with the DCA.

The FOS have said the banks say, that if i don't accept the offer to pay the DCA, they will buy the debt back from the DCA, apply the refund and then sell it back on. Is this allowed as i thought the DCA is not allowed to sell it while in default of s.78 and for the bank to buy the debt knowing this ...

What would be my position if i took the matter to court as the FOS said they believe a court would state the same as them.

The FOS said even if the DCA had written off the amount or closed the account, they would still be entitled to the refund towards the concession, bringing this into the same grey area as my HFC refund. I think this is totally wrong. I asked what if the DCA owed me £1000 and wrote off a £1000 account so no money was exchanged? They said it's all in the wording of it and if they write off they can get back later. Bizarre.

Advice appreciated please as i don't know what to do and don't want to keep losing my refunds to either the bank or the DCA.

[Paule]

Re: debt sold to DCA - who should receive payment from the bank?

I cannot advise on the FOS practices that are in place because i have had no dealings eith FOS

It sounds like the debt has just been passed to a DCA for collection and the banks still OWN the debt and therefore will credit the payment to the DCA (which in turn goes back to them)

YOu need to clarify who actually owns the debts

[tifo]

Re: debt sold to DCA - who should receive payment from the bank?

the DCA owns the debts (i have no debts with credit card providers).

[Sapphire]

Re: debt sold to DCA - who should receive payment from the bank?

I cannot advise on the FOS practices that are in place because i have had no dealings eith FOS

Sorry but I am in the same boat as PK and have not dealt with the FOS. Although I can understand where you are coming from, if you get sent the money direct then you can do a deal with the DCA's for a lower settlement figure and perhaps money left over for yourself, which in all honesty would be what we would all like to do. But it looks like you have a fight on your hands to get your own way.
This is something that a better person that me can help with, there will be someone along pretty soon who is more experienced in this field.
I wish you luck and will be watching this thread with interest.

[tifo]

Re: debt sold to DCA - who should receive payment from the bank?

most posts on my main threads at CAG state that the bank is within their right to pay the DCA but there are many for and against arguments for this.

[Paule]

Re: debt sold to DCA - who should receive payment from the bank?

Not sure on your timescales, but you could SAR the original creditor to find out what was wrote off and how much it went to the DCA for, then you could argue that the dca only paid 10% for the debt so you will pay them 10% less the payments you have already made.
If that makes any sense.

Someone with some FOS experience will put doen the facts soon

[Paule]

Re: debt sold to DCA - who should receive payment from the bank?

the DCA owns the debts (i have no debts with credit card providers).

Have you got proof of this?

I am sorry if I have underestimated your experience, but have all these actually been bought and have you had notice of assignments for them all.
Just that some people automatically think that when a DCA chases a debt, that the DCA owns the debt, where in fact this is not the case

[Froggy]

Re: debt sold to DCA - who should receive payment from the bank?

Consumer helpline 0845 080 1800 open 9-5 Mon to saturday or
020 7964 0500

Maybe a call and ask?

Number for FOS

[tifo]

Re: debt sold to DCA - who should receive payment from the bank?

Have you got proof of this?

I am sorry if I have underestimated your experience, but have all these actually been bought and have you had notice of assignments for them all.
Just that some people automatically think that when a DCA chases a debt, that the DCA owns the debt, where in fact this is not the case

No need to say sorry. I'm new here but have been using CAG for a long time.

I have had LoA's for most of my debts, CCJ's for a few, and have done s.77/s.78 requests a year ago and no properly executed agreement in the correct form and content has been sent yet from any DCA.

I have successfully claimed charges back from current accounts just before July 2007 when stays started and at that time sent my credit card claims to the FOS as all courts are issuing automatic stays. Now i am getting offers for these claims but the money is being sent to the DCA with the FOS's blessing.

The accounts with DCA's are currently unenforceable under s.127(3) CCA 1974 and they are not entitled to receive or ask me for payment, though some still do and with threats of court action. They don't worry me as all i ask for even at court is an agreement, fully executed and containing all the prescribed terms.

[tifo]

Re: debt sold to DCA - who should receive payment from the bank?

Number for FOS

FOS are absolutely useless and i have found them to be biased towards the bank. They don't listen to anything you say and accept only what the bank says. Then make a decision. You cannot respond to the banks submissions as they won't show you what they've had from them, yet everything you submit probably gets sent to the bank.

[Paule]

Re: debt sold to DCA - who should receive payment from the bank?

Well An old hand at the charges game then, with different aliaises and sites, It can be hard to know who's who...

when stays started and at that time sent my credit card claims to the FOS as all courts are issuing automatic stays.

Is there any reason you went to FOS and not the Courts with your CC claims, as these arent affected by the test case.

Anyway Think we need to have a look at the FOS appeal procedures and try and draft up a letter that highlights your concerns/issues and trys to make it logical so that the FOS can see your reasoning.

If I was in your position I would be upset at the result, but IMHO the FOS are on the Banks side anyway, so youre up against it before you start,

[tifo]

Re: debt sold to DCA - who should receive payment from the bank?

Well An old hand at the charges game then, with different aliaises and sites, It can be hard to know who's who...

Is there any reason you went to FOS and not the Courts with your CC claims, as these arent affected by the test case.

Anyway Think we need to have a look at the FOS appeal procedures and try and draft up a letter that highlights your concerns/issues and trys to make it logical so that the FOS can see your reasoning.

If I was in your position I would be upset at the result, but IMHO the FOS are on the Banks side anyway, so youre up against it before you start,

Yes, an old hand at the charges game but i use the same alias/ID at CAG, as well as MSE, CCS and PC which i don't use as much. I've heard of this site but didn't know the forum was as active as it is.

I went to the FOS because nearly all courts are staying all claims, even credit cards and business accounts which the FSA has stated in its waiver are not included.

I've tried to reason with the FOS but they don't see it as unenforceable or different companies etc. They act as if the debt is current with the bank which it is definately not. To them, the bank and DCA are the same thing and whoever has the account can keep my money.

[WendyB]

Re: debt sold to DCA - who should receive payment from the bank?

I think it depends what court you claim in. I've done 3 CC claims at my local court, none of them got stayed. Once you've done FOS route can you still go court route, or is FOS the end of the line?

[tifo]

Re: debt sold to DCA - who should receive payment from the bank?

I think it depends what court you claim in. I've done 3 CC claims at my local court, none of them got stayed. Once you've done FOS route can you still go court route, or is FOS the end of the line?

Yes, we don't have to accept the FOS decision and can take it to court.

My local court is staying all claims and so are the nearby ones, which is why i sent it to the FOS in the first place.

[scottishlass]

Re: debt sold to DCA - who should receive payment from the bank?

Hi Tifo,

I was under the impression that CC's couldn't be stayed as they have nothing to do with the Test Case.