DCA Interest

Lexxi

I'm jst wondering if anyone knows what interest/fees a debt collection agency can add on to a debt.
I'm being chased at the moment and they have stuck fees of around £700 on to a £2000 debt.
I've just been reading up about the company and it seems they charge their customers to instruct them and then take a final % of the total paid so they are hardly incurring fees. Well they will be but they'll be getting paid from their customer.

Also, they seem to be sending out automated emails, I seriously can't imagine they're sat at their computers at 00:10! It seems a good idea though, can't sleep being chased, will go online 'oh look email from the chasers'

BigCraigJohn

I think they can only add fees if it was in your original agreement when you took out whatever credit it it.
Dont take my word as gospel though, just something i'm sure I read.
I guess most people will just pay up no questions asked.
Yet another case of kicking people while they are down.

Lexxi

Oh, they're taking me for everything I've got and whatever I might ever have, supposedly.
There is no agreement about anything with the creditor though. No name. No Sig. No terms. Go figure!

never-in-doubt

If the account is disputed/defaulted then they cannot add much at all (zilch)...

I'd be prone to make an offer to clear the debt, start at 30% so in this case i'd be offering a single payment if £800 in full & final settlement, if you cannot get hold of those funds then come visit my Unenforceability thread and we'll get the whole lot wiped! :)

p.s they must have been legally assigned the debt otherwise you can refuse to discuss things with them and have any/all charges wiped if they were not legally assigned the debt via NoA (Notice of Assignment)...

Linky: Unenforceability & Template Letters III

Lexxi

It's a company debt and it is in dispute and was when it went to them, I had threatening texts etc from the supplier. I'd rather leave it with them I think as the supplier wasn't acting within the law and the police don't actually appear to be aware of what the law is!
Does unenforcibility still stand with business debts?

I never realised they have to be legally assigned the debt, do I have to be informed of that?

Thanks for your replies

never-in-doubt

Lexxi wrote: »

It's a company debt and it is in dispute and was when it went to them, I had threatening texts etc from the supplier. I'd rather leave it with them I think as the supplier wasn't acting within the law and the police don't actually appear to be aware of what the law is!
Does unenforcibility still stand with business debts?

I never realised they have to be legally assigned the debt, do I have to be informed of that?

Thanks for your replies

Ahh no its only debts regulated by the CCA1974.... scrap that.

But if the supplier has sold the debt on they must notify you by way of Notice of Assignment (this is a 3 way document agreed by all parties of the sale/transfer of debt) - they can agree to it without your agreement, but they have to notify you.

Speak to CAB or try making a full and final offer. I assume no default has been registered? If not then you could always just ignore it

Lexxi

From what I can see/read about this company they have been employed/instructed by the creditor so I don't think it has actually been sold on, which is why I was just wondering what charges they can add.

The company has no money to pay them and they have been told this, they are now threatening to liquidate the company (at 00:10 seriously?) which is fine for them to do.
However the supplier acted illegally so I can't imagine a court would look favourably on this

DarkConvict

I don't think they can add charges unless it goes to court or in an agreement you hold. If it was informal here is x number of goods pay me in 30 days, then there is no agreement for them to start adding charges to collect money. I would ring business debtline to clear this up as its mostly consumer credit we know about - http://www.bdl.org.uk/

Lexxi

Thanks for your replies, the agreement wasn't even that formal. A staff member then told the supplier he wouldn't be getting paid so the supplier came in and took a lot of stock, things he hadn't supplied.
I've spoken with bdl and they are really really great.
This dca is adding charges and refusing to take into account the value of the stock taken, I had a friend helping me out with it and when she spoke with them they weren't even aware of it now I've got a 2nd letter and the debt is still the same!

DarkConvict

Have business debtline told you what to do now?

Lexxi

I haven't manged to get through today. The letter I sent on bdl advice was to advise that there is no money and they are welcome to wind up the company at a cost to them and they have sent me a letter threatening to do that. I wasn't sure if it would matter whether or not they took the stock value off if the otcome is going to be the same either way