Freedom of information request regarding debt sold on to third parties

Rigglet · 15 December 2014 at 12:11PM

Ok my question is this......
Majority of my debts have been sold on to Debt Collection Agencies(DCA i shall call them).From what I can gather most agencies buy the debt for around 20%, am I correct?
On that basis can I and how do I find out each individual figure of what the debt was bought for.
E.G. Barclaycard £10,000
Would this have been sold on for £2000?
If I can get each amount confirmed in writing I will offer what they paid plus a pound, so £2001 to DCA that has bought the Barclays debt.
You see the way I see it is that I'm trying to be honourable and make offers but I need to know what they bought it for.
In reality yes I can just say "sod it, I'm going Bankrupt and your get nowt off me"
So help please, not judgemental poking please.
Oh you may be thinking where the cash is coming from.
Well I was thinking of robbing a few banks, sorry but they do it to us on a daily basis so why not?
Ok for all you law enforcement and naive people that was a joke and a little dig at the establishment.
I'm sure I could borrow the cash of a family member or third party.
No bank robbing honest.
Right then I will sit back and watch the replies roll in. I hope.
Oh and I don't feel sorry for myself btw,I've got my health. Apart from the grey matter is a bit up and down and twisted sometimes but hey ho aren't we all a bit mad?

Somerset · 15 December 2014 at 1:41PM

You can't get that information.

DorisTrousers · 15 December 2014 at 1:50PM

Whether a Freedom of Information request would work, but more to the point is it relevant at all, is open to debate.

You maybe need to look at this the other way round. If you have access to 3rd party funds then you should ascertain how much is available. You can then decide on your strategy. Let's say, hypothetically, you can access £5k. Your choice then is to contact all the companies and see what they will accept firstly. Never a good idea to tell them what you have. When you have contacted them all, add up how much is needed. If you have enough, happy days. If not, then you could approach a Debt Charity and see if their "extra muscle" is any use in the negotiating stakes. Don't be surprised to see wildly different ranges of what discounts you may or may not be offered. Doing it this way is informal and avoids insolvency and you may get decent deal(s) out of it, but carries no guarantees of success.

Alternatively, you could look at a "single premium" IVA, which again depends on how much 3rd party funds you have access to, but is more formal. It is a form of insolvency so bear that in mind, but has the advantage of legally binding all creditors to the same deal, if accepted. So, if one or two play hardball and are not accepting a deal, they could be forced into it by the voting procedure in the IVA. There will be a cost, but not on top of whatever is available, and these types of IVA's are almost always accepted if it is clearly the best deal available, i.e. take it or leave it, with the clear inference that should they leave it then BR is the next step. If you consider this route, you would need to find an I.P. willing to take the case on a now win no fee basis, you don't want costs if you lose. The I.P. will also, like as not, insist that any potential mis-sold PPI issues are resolved and go to the IVA as well, so be aware of that as well.

Good luck with whatever you decide.

Rigglet · 15 December 2014 at 3:48PM

Somerset thanks for your invaluable help.
Doris trousers, thank you for taking the time to reply in detail.
Since posting my original post I have picked up the phone and rang all my creditors,one of which agreed to a 50% reduction in the overall debt I owe them immediately.
I certainly won't be paying anything over the phone as I have no guarantee that it will be honoured.
I have also visited Debtline website and taken their template letter for a full and final settlement and offered all of them 20%.
I can post my responses as and when I get them.
If you don't ask you don't get do you?

fermi · 15 December 2014 at 3:54PM

FOI requests only apply to public bodies I'm afraid. Banks or debt collectors - even if publicly owned - are not covered.

Most debt sale agreements also contain a confidentiality clause as well, meaning neither party could disclose what they paid.

Rigglet · 15 December 2014 at 4:19PM

Thanks Fermi.
Am I right in thinking that most DCA buy the debt for around 10-20%,so in theory it's better to get a lump sum for 20% of the amount than £1 a month for decades and never get the full amount or even close to the 20% I'm offering.
I suppose the logical mathematical sum does not interest the Banks sometimes and they would rather lose out in the long run just to spite the person offering them 20%.in my opinion a very unwise and !!!!!! way of doing business.
IMHO 20% is better than a slap round the face with a wet fish, or to put it another way 20%........ or zip,zilch, nada or nothing when people go down the Bankruptcy route.

DorisTrousers · 15 December 2014 at 5:52PM

Debts can be bought for any amount, you will hear tales of single pennies in the £.

Do not assume that debt purchasers will be happy to receive more £1 more than they paid either if there are alternatives, especially as you have no idea of what they actually did pay. The 50% reduction you have been offered is all very well and good, but apply that across the spectrum and you are looking at £12,500. Have you got that, or access to it? You may actually be doing the creditors a favour by going bankrupt, as the whole balance can be written off against tax liabilities, as can any monies not recovered by a single premium IVA.

Worth a thought as you go through your journey.

4$£&*(£$&*(! · 24 December 2014 at 9:18PM

As already pointed out, FOI only applies to public bodies.

You could try a 'subject access request' under the Data Protection Act. Not sure how far you'll get, and companies are entitled to a) withhold sensitive information and b) make a charge for a SAR.

Could be worth a shot though?

Freedom of information request regarding debt sold on to third parties

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