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Collection agencies legal position
alterego_2
Posts: 63 Forumite
Can anyone clarify what the legal relationship is between credit card companies and the collection agencies they employ?
Do the agencies buy the debt, or are they working on commission, or some other arrangement? Is the CC company still involved, even? At the moment, I'm getting letters from both!
Thanks.
Do the agencies buy the debt, or are they working on commission, or some other arrangement? Is the CC company still involved, even? At the moment, I'm getting letters from both!
Thanks.
0
Comments
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Sometimes they buy the debt, and some times they are just acting on behalf of the original creditor for a fee.
If you are still getting letters from the original creditor, then it is most likely the latter.Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB
IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed0 -
If they've bought the debt, how can one know (they tend not to tell you if you ask)? How much would they have bought it for, 10%, 50%?
If they're acting on behalf of the original creditor, does that limit their scope of action?0
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