Why do some banks not 'sell' to DCA and some do?

[willtheywontthey]

Just wondering why some banks / credit card companies don't seem to 'sell' the alleged debt to a DCA whilst others do so?

eg not doing so in my case are RBS, Co-operative and Barclaycard

Capital One sold on as did MBNA......


is there some logic behind the reasons some do not 'sell' on despite the time-frame being the same as are amounts usually?


I'm assuming the ones who sell on are usually concerned about validity of the alleged debt / cca or whatever?

In the case of RBS I would have thought they'd have sold on once they'd admitted they could not find CCA and the other was unenforceable - or are they not allowed to once they state words to that effect?

thanks

x

[Caspar]

Re: Why do some banks not 'sell' to DCA and some do?

Aas far as I'm aware there is no discernable logic to their actions or inactions. All the ones you mention do farm accounts out to DCA's, and this just serves to make things more confusing - why do they do it in some cases and apparently not in others?

[CleverClogs]

Re: Why do some banks not 'sell' to DCA and some do?

Aas far as I'm aware there is no discernable logic to their actions or inactions. All the ones you mention do farm accounts out to DCA's, and this just serves to make things more confusing - why do they do it in some cases and apparently not in others?

Perhaps it depends on the state of the office manager's anal herpes? :tinysmile_grin_t:

[Guest]

Re: Why do some banks not 'sell' to DCA and some do?

Just wondering why some banks / credit card companies don't seem to 'sell' the alleged debt to a DCA whilst others do so?

eg not doing so in my case are RBS, Co-operative and Barclaycard

Capital One sold on as did MBNA......


is there some logic behind the reasons some do not 'sell' on despite the time-frame being the same as are amounts usually?


I'm assuming the ones who sell on are usually concerned about validity of the alleged debt / cca or whatever?

In the case of RBS I would have thought they'd have sold on once they'd admitted they could not find CCA and the other was unenforceable - or are they not allowed to once they state words to that effect?

thanks

x

I wondered about this also, i know that the creditor usually only gets fraction of what the account is worth on a sale, not quite sure how it works when just the equity is sold.
As regards unenforceabloe accounts , i would bet that they get pennies in the pound for them so perhaps it is not worth them selling, just guessing.
Perhaps they tend to hold onto the accounts that are more likely to be recoverable as well, so that would just leave the grey area in the middle i suppose.

Peter

[Caspar]

Re: Why do some banks not 'sell' to DCA and some do?

I think in an Equitable Assignment they get a percentage of what they manage to collect.

[Pinky69]

Re: Why do some banks not 'sell' to DCA and some do?

Bank debt departments are not geared up to the kinds of collection procedures in volume that DCAs have. Decisions to write off debt against tax are made by accountants and it is at that stage the debts are sold on. Until they are, they are farmed out to DCAs for collection. For the last 2 years there hasn't been a lot of selling by the banks because the debt buyers weren't awash with cash after the credit crunch and banks weren't willing to sell the debts at the prices the DCAs were offering so the banks took the debts off the sale market altogether and went for collection only, much to the chagrin of the debt buyers. There is nothing to indicate that the debts for sale hoped for by the buyers has actually materialised and DCAs have also been complaining about the level of commission banks have been paying for collections. This is reflected in the DCA returns that show collections up but very little increase in profits before tax. Recommended reading is the Plimsoll Report on Debt Collection Agencies which you will find on the Plimsoll website.

[ODC]

Re: Why do some banks not 'sell' to DCA and some do?

I suggest that the Bankers who sell on debts realise that the agreement they think they have is actually both dodgy and illegal

[CleverClogs]

Re: Why do some banks not 'sell' to DCA and some do?

Some might also sell statute barred or otherwise unenforceable debts.

[greta-girl]

Re: Why do some banks not 'sell' to DCA and some do?

After the bank sells the account to a DCA, is the sale valid if the bank does not inform the debtor?

[ODC]

Re: Why do some banks not 'sell' to DCA and some do?

After the bank sells the account to a DCA, is the sale valid if the bank does not inform the debtor?

NO. In accordance with the Law of Property Act the Original Creditor must inform the alleged debtor in writing that the debt has been sold

[charitynjw]

Re: Why do some banks not 'sell' to DCA and some do?

NO. In accordance with the Law of Property Act the Original Creditor must inform the alleged debtor in writing that the debt has been sold

I read somewhere that the actual wording says that the 'goodbye' part of the process must be carried out 'under the hand' of the seller.
If so, does this mean that it must be carried out by the seller, or is it ok for someone else (ie the purchaser) to do it for them?

[ODC]

Re: Why do some banks not 'sell' to DCA and some do?

I read somewhere that the actual wording says that the 'goodbye' part of the process must be carried out 'under the hand' of the seller.
If so, does this mean that it must be carried out by the seller, or is it ok for someone else (ie the purchaser) to do it for them?

In practice the DCA usually print off a letter purporting to be a goodbye letter from the OC. It arrives in the same envelope as the welcome letter from the pondlife along with a scanned signature allegedly from somone supposedly working for the OC.
The OC will have usually given tacit permission for this to be done. However its easy to prove the letter didnt come from the OC and thus in my humble opinion the so called assignment isnt woth the paper its photoshopped on to.

[dogtired]

Re: Why do some banks not 'sell' to DCA and some do?

In practice the DCA usually print off a letter purporting to be a goodbye letter from the OC. It arrives in the same envelope as the welcome letter from the pondlife along with a scanned signature allegedly from somone supposedly working for the OC.
The OC will have usually given tacit permission for this to be done. However its easy to prove the letter didnt come from the OC and thus in my humble opinion the so called assignment isnt woth the paper its photoshopped on to.

Thanks for that, just sent a "prove it letter" to Robinson Hall as all that was in the "letter" from them was just that and an envelope!
And so far just had "we are still looking into this" letters from Cabot re two others!
DTx

[greta-girl]

Re: Why do some banks not 'sell' to DCA and some do?

What is the legal position if a SAR request to the bank reveals the account was sold but there is no reference to a letter notifying the sale being sent from the bank to the debtor?

Should a new topic be started for the subject of when a sale is proper as it has moved away from the original topic?