Debt Collection Agency

kmbmab

My sister had a debt sold to a collection agency and she has an agreement with them and has paid on time regularly. they have now sold the debt to a new agency who have added £2k to the debt and said she has not made any payments to them and that they are going to have her house sold to get the money UNLESS she contacts them and immediately pays the debt off in full - they will offer her a 25% reduction if she does this also.
Can an agency just add £2k to a debt and surely if they buy a debt and an agreement has already been set up and maintained they must continue with the agreement?
Please help as she is very distressed about this situation, she has contacted them explaining the situation and stating that the letter is of a very bullying nature but they were just very patronising to her and said it will get sorted??

thechippy

Who's the new dca?

No, they can't willy nilly add made up charges.

I suggest you CCA them asap and we'll help from there.

Edit.

Don't ever call these muppets - only communicate in writing....

kmbmab

I didn't think they could, I will get the new DCA details from her tomorrow and post.

Sorry if I am being daft but what is CCA?

I will tell her to put everything in writing from now on then.

Thanks

thechippy

CCA is consumer credit agreement / credit card agreement etc.

Tell her to send this....Dear Sir/Madam

Re:- Account/Reference Number ……..

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77 will apply.

If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection from Unfair Trading Regulations 2008 (CPUTR).

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

We look forward to hearing from you.

Yours faithfully

IF they send anything back, it will tell us..

a. If the agreement is compliant and enforceable
b. If they can add interest (which I doubt)

Keep in touch and we'll sort out these leeches for ya!....:D

fermi

kmbmab wrote: »

Can an agency just add £2k to a debt

https://forums.moneysavingexpert.com/discussion/2992820

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.