DCA's and Assignments

[Algee]

If a DCA buys what they believe to be a correctly terminated account, which is subsequently found to be still live due to an invalid DN, in what state does that leave the assignment?

I believe that Deed of Assignment/Sale Agreement would have to state what condition the Agreement is - live or terminated. Cabot, for example, in most of their claims ask for the full amount as arrears, stating that the account is still live

If the state of the assignment does change, does this mean that the assignment is invalid, and must be returned to the original creditor or treated as an equitable assignment? If a date being wrong by one day can invalidate an assignment, why not the state of the agreement - live or terminated.

If that is so, then it brings more questions such as if the OC - Goldfish for example - is no longer trading, what happens then?

Alan

[labman]

Re: DCA's and Assignments

An agreement cannot be terminated on the back of a faulty DN. The assignment has taken place, and if it was an assignment in absolute, then the live account would belong to the DCA.

It is often advantageous for an account to be with a DCA rather than the OC as they tend to be much easier to deal with.

[Algee]

Re: DCA's and Assignments

Labman

I know that an agreement cannot be terminated on the back of a faulty DN, but my question is not about that.

As I said on the first line, the DCA believes the account to be terminated, and if the debtor does not challenge that before any claim is made, does that make the assignment invalid? If a claim was made could you defend on two fronts that the assignment was invalid and a faulty DN?

This is just a question - not something I am running with.

Alan

[Sparkie1723]

Re: DCA's and Assignments

Hi Algee,

IMO opinion just because the agreement has not been Terninated does not mean the asisgnment is invalid ...all it means is that a"live" agreement has been assigned and not a terminated one............there is no law to my limited knowledge that says live agreements cannot be assigned, what you could do is check if the DCA has the proper category licence on its CCA licence to conduct consumer business other than debt collecting........if they have not then they have problems with the licensing regime of the CCA.

Just my thoughts...not legal fact

Sparkie

[labman]

Re: DCA's and Assignments

Labman

I know that an agreement cannot be terminated on the back of a faulty DN, but my question is not about that.

As I said on the first line, the DCA believes the account to be terminated, and if the debtor does not challenge that before any claim is made, does that make the assignment invalid? If a claim was made could you defend on two fronts that the assignment was invalid and a faulty DN?

This is just a question - not something I am running with.

Alan

My second sentence was obviously unclear, sorry. If the DCA has been assigned the account in absolute, whether terminated or not, it owns that account. The assignment is still valid to the best of my knowledge.

Apologies for my lack of clarity.