Hurdles with DCA

donatello_2

Hi,

I have just been told that my debt is to be passed to a DCA, not sure when though. I was going to settle the debt with the OC but I think I may aswell wait until its sold on.

Am I right in thinking this is a good thing, as I can offer a considerable amount less to settle the debt?

Are there any extra charges that DCA's add on or any evil tactics I should be ready for?

Any advice welcome. This is new ground for me.

mr.ton

DCA's are the surge of modern Britain, they sum up everything that is rotten about our wretched capitalist country.
Be prepared for all sorts of threats "we will do this", "you must do that" and so on...
Thankfully none of it is worth the paper its printed on and they have no legal power to any money off you whatsoever, only a county court does.
As soon as you receive anything, post back here & we'll advise you

donatello_2

Thanks for that. As soon as I hear who the debt has gone to, i was planning on offering a F & F straight away. If this is the right thing to do, how do i approach this?

saltnvinegar

Hi Donatello

Just a few things to be aware of before you go down this route....

1) Has your account been passed to a DCA yet or have you received a letter stating that this may happen unless you pay the amount owed?

2) Have you received a default notice?

As already mentioned original creditors will make a lot of threatening noises to frighten you into paying up so be clear where you are in the process regards point 1.

The reason why I ask about point 2 is it relates to your credit record. If they have not applied a default to you then when they pass your account to a DCA they most certainly will. This will affect your credit score for at least 6 years.

If you don't care about your credit score then obviously not an issue!

Therefore if you are in a position to pay the full amount, and have not yet been defaulted I would give careful consideration before allowing it to.

Next I think it unlikely that you would get a decent F&F settlement figure with such a fresh debt (especially from a DCA). Those people that get huge dedections usually do so because they have been paying small payments for a long time and its likely the DCA has been sold the debt and the OC has written the debt off (and claimed tax relief also!).

I don't want to put you off but just thought you needed to be aware of the consequences.

Best of luck!

SnV

donatello_2

thanks saltnvinegar,

I have been on a DMP for 4 years and the OC has been taken over by Santander earlier this year. They told me on the phone that it is in the process of being transfered to a DCA. Its strange though, as they will have all the money back in 1 year at my current repayment rate.

The account was defaulted when I entered the DMP 4 years ago.

Even if I can get a slight reduction on a F & F with the DCA and have a 'partial settlement' on CRA file, in 2 years the default will be gone anyway, full or partial, I may aswell try and save a bit of money.