Offer from collection agency - scam?

Mature-Student

Hi

A friend has asked my advice on a letter she has received. She has had a few letters over the past couple of years from a debt collection agency. At first she thought the amount had in fact been paid, so wrote and asked for confirmation of the debt. They never replied on three occasions.

As the debt was fairly small (< £200), and she was sure she'd paid, she started ignoring the letters. She thinks the last one arrived about three mon ths ago. Now she has received a letter saying they will accept 60% of the sum outstanding, either as a lump sum "in full and final settlement", or half of the 60% now "and the rest in monthly instalments". To take advantage of this, she has to contact them within 10 days.

My friend is unsure what to do. She's concerned that by contacting them, even to get confirmation of the debt, this will confirm where she lives and they might send a bailiff or similar around. However, following a pre-Xmas clear out, she discovered an unposted envelope in an old handbag that contained a cheque to a store card company for just less than the amount being claimed by the debt company. So she thinks the debt may be real.

Advice? And is this offer genuine, or as I think, a way of enticing people to get in touch and then 'influence' them to pay the full debt plus costs. As far as I remember 'in full & final settlement' has no legal standing.

Thanks

Burlesque_Babe

unless there is a CCJ in place, they can't send a bailiff to a property. Anyone who visits can legally told to f off.

Who is the collection agency and who is the original creditor? They have probably bought the debt for pennies and requesting a CCA is probably the best route to go down.

RAS

Hi

If it was a store card, how old is the debt.

has she asked for the Consumer Credit agreement?

Does the default show up on her credit records?

Enfieldian

Quite simply the DCA has purchased the debt as part of a bundle from the store card company.

DCAs will pay pennies in the pound for these debts so getting people to pay 50 or 60% of the original value is going to make a profit for them.

How old is the debt? If it is more than 6 years since acknowledgment by your friend it is statute barred and can't be chased. That won't stop a DCA chancing their arm though.

If it less than 6 years old then your friend can send a CCA request to the DCA if she wants, asking them to prove ownership of the debt. If the DCA cannot supply this within a specified time period then they cannot chase it until they do.

Bailiffs are unlikely as court costs for the DCA would probably outweigh the value of the debt.

DCAs have been known to use "collection agents" but they have even fewer powers than bailiffs.

Mature-Student

If she's right, the creditor was GE Capital and the agency Aktiv Kapital, with the debt being two to three years old. I don't know if it is on her credit report, and there is no mention of court orders on the letter. It looks more like a shop's sale letter!

RAS

Ak are one of our favourites on here, ask debtman and cocker100!

They specialise in buying unenforceable debt and tryign to ring out what they can get.

15-120 % would be about right if she wants to pay.

She needs to check here credit file and let us knwo - see the credit rating tab on the first page.

Mature-Student

So are AK not very reasonable and understanding?

What difference will the credit file make if they have already put a default note on there?

And, after reading other threads on here, I saw mention of templates for asking for a copy of the CCA & notice of assignment, along with mention of checking the validity of the CCA - where di i find this info, please?

RAS

Mature-Student wrote: »

So are AK not very reasonable and understanding?

Splutter, choke , fall about laughing.

CCA leeter coming but then I have to go.

RAS

original CCA request letter:

Quote:
Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

I do not acknowledge any debt to your company.

With reference to the above, we would be grateful if you would send us a copy of this credit agreement, statement of account and notice of assignment.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully



Write you name do not sign.

Mature-Student

Thanks for all your help, RAS.

Can anyone else, in RAS' absence, explain why the letter isn't signed and how the £1 should be paid - PO as opposed to cheque which would give bank details - or is this being too paranoid?

Numpty_Monkey

Your not being to paranoid
It has been sugested that some DCA copy your signature onto things
and why give them your bank details