DCAs buying debt - D'oh!

[Pinky69]

The DCAs are getting excited because new debt portfolios are being released from the banks after a long stand-off where the DCAs and banks couldn't agree on price. The old portfolios weren't reaching their collection targets so they were desperate to buy new portfolios in the hope that that would solve their cash flow problems. There is just one thing they have forgotten in all this. People are even less able to pay now than they were 3 years ago, having had income frozen and lost jobs and millions more know their rights. I think they and their investors are going to be sadly disappointed. The real world is far removed from with the baseless optimism of DCAs.

[Curlyben]

Re: DCAs buying debt - D'oh!

Couple with the delay making some of these "debts" become SB'd then the DCA's are onto a serious looser here.

Shame

[Caspar]

Re: DCAs buying debt - D'oh!

Have to say, it will be nice to get our teeth back into some DCA stuff again though, it's been awful quiet on that front. There's more to throw at that now as well with the correct use as CPUTR against them and the closely related Enterprise Act using the word indictment, suggesting lying under CPUTR may well be considered a criminal offence, their job is going to get harder and harder! Poor things!

[debtisbad]

Re: DCAs buying debt - D'oh!

Hi Caspar, could you expand on the 'lying under" sentence and CPUTR? What do you specifically mean. Since this will be interesting to many. Many thanks.

[mr.ton]

Re: DCAs buying debt - D'oh!

The DCAs are getting excited because new debt portfolios are being released from the banks after a long stand-off where the DCAs and banks couldn't agree on price. The old portfolios weren't reaching their collection targets so they were desperate to buy new portfolios in the hope that that would solve their cash flow problems. There is just one thing they have forgotten in all this. People are even less able to pay now than they were 3 years ago, having had income frozen and lost jobs and millions more know their rights. I think they and their investors are going to be sadly disappointed. The real world is far removed from with the baseless optimism of DCAs.

The fact is that thanks to sites like this, more people are realizing that DCA's have no legal powers whatsoever - so they are simply throwing money down the drain by buying these debts.
Once one fails to collect, it will be passed around the industry like pass the parcel until it eventually vanished into nothingness.

[Caspar]

Re: DCAs buying debt - D'oh!

Hi Caspar, could you expand on the 'lying under" sentence and CPUTR? What do you specifically mean. Since this will be interesting to many. Many thanks.

The following letter was produced by Priority One. It has been exceedingly effective in getting not only DCA's, but solicitors such as dear Bryan off peoples' backs. Although CPUTR cannot be used be the debtor, if it used by another organisation against the company and they have either ignored this perfectly reasonable request, or lied under, production of the letter in court could be a very strong piece of legislation. As it is related to the Enterprise Act which actually mentions the word ' indictment' it would suggest lying would be a criminal offence.

As yet CPUTR has not been tested in court, and none of the DCA's, nor anyone else for that matter, seem to want to be the first case, so they tend to move on to easier prey.

Dear Sir/Madam,

Your Ref: xxxxxxx

This is a formal request under the Consumer Protection From Unfair Trading Regulations (CPUTR) 2008.

I require your organisation to provide written confirmation that states clearly whether you currently hold an original signed Consumer Credit Agreement, or whether you do not hold an original signed Consumer Credit Agreement pertaining to myself.

For the avoidance of doubt, an original signed Consumer Credit Agreement is just that; not an application for credit and not a reconstructed or microfiched document from other sources.

Please note that until such times as a legally enforceable, original Consumer Credit Agreement can be produced and a copy sent to me by return, then this letter is not an acknowledgement of debt.

Please also note that failure to provide a direct answer to this request will be brought before the court, should you decide to defy the content of this letter and instruct solicitors to pursue enforcement action regardless.

Yours faithfully,

[debtisbad]

Re: DCAs buying debt - D'oh!

The following letter was produced by Priority One. It has been exceedingly effective in getting not only DCA's, but solicitors such as dear Bryan off peoples' backs. Although CPUTR cannot be used be the debtor, if it used by another organisation against the company and they have either ignored this perfectly reasonable request, or lied under, production of the letter in court could be a very strong piece of legislation. As it is related to the Enterprise Act which actually mentions the word ' indictment' it would suggest lying would be a criminal offence.

As yet CPUTR has not been tested in court, and none of the DCA's, nor anyone else for that matter, seem to want to be the first case, so they tend to move on to easier prey.

Dear Sir/Madam,

Your Ref: xxxxxxx

This is a formal request under the Consumer Protection From Unfair Trading Regulations (CPUTR) 2008.



I require your organisation to provide written confirmation that states clearly whether you currently hold an original signed Consumer Credit Agreement, or whether you do not hold an original signed Consumer Credit Agreement pertaining to myself.

For the avoidance of doubt, an original signed Consumer Credit Agreement is just that; not an application for credit and not a reconstructed or microfiched document from other sources.

Please note that until such times as a legally enforceable, original Consumer Credit Agreement can be produced and a copy sent to me by return, then this letter is not an acknowledgement of debt.

Please also note that failure to provide a direct answer to this request will be brought before the court, should you decide to defy the content of this letter and instruct solicitors to pursue enforcement action regardless.

Yours faithfully,

Wow, Casper, powerful stuff. Thanks a lot!

[ODC]

Re: DCAs buying debt - D'oh!

Excellent letter. Is there a particular section of the CPUTR 2008 that this refers to

[Caspar]

Re: DCAs buying debt - D'oh!

With CPUTR it is best not to refer to specific sections, but keep a broad sweep. The creditors know what the regulation is about, it's not our job to spell it out for them.

Given that a debtor cannot actually instigate action against a creditor under CPUTR, the time for reporting specifics would come later anyway.

The new OFT Guidelines produced last week also contains some powerful words to encourage creditors to tell the truth about cases. The problem is these are only guidelines whereas CPUTR is legislation. I would be tempted to use the two together.

[ODC]

Re: DCAs buying debt - D'oh!

With CPUTR it is best not to refer to specific sections, but keep a broad sweep. The creditors know what the regulation is about, it's not our job to spell it out for them.

Given that a debtor cannot actually instigate action against a creditor under CPUTR, the time for reporting specifics would come later anyway.

The new OFT Guidelines produced last week also contains some powerful words to encourage creditors to tell the truth about cases. The problem is these are only guidelines whereas CPUTR is legislation. I would be tempted to use the two together.

Cheers for that. Ive read the new guidelines. They didn't do the DCAs any favours.