DCA rights

crazyhaggid

I'm really struggling with this one, one of my debts was sold to Cabot and since they have taken over it they have in one year increased the debt from £1200 to £1800.

In the CCA, which took them four months to produce the interest rate is not stated (so is unenforceable in a court of law).

So what I really need to know is what interest rate can they charge if any and what laws cover this?

Any advice would be very much appreciated

RAS

Was this debt taken out before April 2007?

If the CCA is unenforceable, they cannot add any interest.

If you stop paying a debt taken out before April 2007, they cant take you to court so if this debt has already been defaulted, you can choose whether to pay and how much.

crazyhaggid

RAS wrote: »

Was this debt taken out before April 2007?

If the CCA is unenforceable, they cannot add any interest.

If you stop paying a debt taken out before April 2007, they cant take you to court so if this debt has already been defaulted, you can choose whether to pay and how much.

Thanks for the reply, yes it was taken out before April 2007. Can you tell me what law states they can't add interest as I would very much like to know my rights for writing back to them.

DarkConvict

Interest can only be added on the debt where there is a contract to do so. So a credit card at 17.9%, could when sold still be charged at 17.9%.

But if you have disputed the CCA as been illegitimate and unenforceable im less sure on what they can do. Usually interest is stopped and just collection charges applied, but even then sometimes collection charges are not allowed.

RAS

crazyhaggid wrote: »

Thanks for the reply, yes it was taken out before April 2007. Can you tell me what law states they can't add interest as I would very much like to know my rights for writing back to them.

Hi they can only add the interest at the rate stated in the CCA. No interest rate stated...no interest can be charged. Much in the way as mortgage fees - if they say £90 and charge £400, they have to pay it back.

Can we just check what sort of account this was?

crazyhaggid

RAS wrote: »

Hi they can only add the interest at the rate stated in the CCA. No interest rate stated...no interest can be charged. Much in the way as mortgage fees - if they say £90 and charge £400, they have to pay it back.

Can we just check what sort of account this was?

It was a marbles credit card

crazyhaggid

so does anyone know what actual laws control what DCAs can do?

DarkConvict

I dont know the laws. But it is pretty much they can ask for payment, if you refuse they can attempt to get a CCJ. If they go for a CCJ they must bring a valid CCA with them. If they get a CCJ and you still don't pay, then they can use bailiffs.

Other enforcement is just submitting late/missed payments and defaults to the credit file. From a recent court case i believe they can still (as above) damage your credit file even with an unenforceable CCA. Drop never-in-doubt a PM for more CCA based info.

RAS

If the CCA is unenforceable, then the creditor can try and take you to court but if you defend the case on the grounds that the CCA is faulty, it will be thrown out.

Might be a good idea if you read here and have a chat with nid.
http://forums.moneysavingexpert.com/showthread.html?t=2060575

if the CCA i9s faulty, you are not obliged to pay any more to Cabot.

crazyhaggid

RAS wrote: »

If the CCA is unenforceable, then the creditor can try and take you to court but if you defend the case on the grounds that the CCA is faulty, it will be thrown out.

Might be a good idea if you read here and have a chat with nid.
http://forums.moneysavingexpert.com/showthread.html?t=2060575

if the CCA i9s faulty, you are not obliged to pay any more to Cabot.

Its definitely faulty as there's no interest rate of repayment term in it, I've told Cabot this but they won't listen. I would really like to know which law states they then can't add interest so I could quote it to them.

DarkConvict

Not law, but its what OFT has to say on the matter.

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

Charging for debt collection
2.9 Charges should not be levied unfairly.
2.10 Examples of unfair practices are as follows:
a. claiming collection costs from a debtor in the absence of express
contractual or other legal provision
b. misleading debtors into believing they are legally liable to pay
collection charges when this is not the case, for example, when there
is no contractual provision
c. not giving an indication in credit agreements of the amount of any
charges payable on default
d. applying unreasonable charges, for example, charges not based on actual
and necessary costs
e. applying charges which are disproportionate to the main debt.

If there is no interest stated, then they are not allowed to charge interest as their is no contract between you and the original creditor (who sold it to cabot) to be allowed to charge any interest on the amount.