DCA's

thefoolonthehill

Hi all

been thinking about dca for a while and how they make money. From what I understand they purchase bad debts for a low price from creditors then harrass the life out of debtors for forever and a day.

I have a cunning plan, so cunning in fact it would make baldrick proud!

we need to get as many dfw together as possible and form our own dca, we then purchase the debt of the dfw's from the creditor. they then only have to pay back the lower amount that is purchased.

anyone think this would work?

Mc4ndy

What do the DFW's use to purchase the debt? A loan?

I think you've just created an infinite loop.

ZTD

Mc4ndy wrote:

What do the DFW's use to purchase the debt? A loan?

Yes, they do. Surprising as it may seem, their interest rates are better than normal people's.

lynzpower

sounds like a plan to me fool, im in

Tootsie_Roll

thefoolonthehill wrote:

Hi all

been thinking about dca for a while and how they make money. From what I understand they purchase bad debts for a low price from creditors then harrass the life out of debtors for forever and a day.

I have a cunning plan, so cunning in fact it would make baldrick proud!

we need to get as many dfw together as possible and form our own dca, we then purchase the debt of the dfw's from the creditor. they then only have to pay back the lower amount that is purchased.

anyone think this would work?

Don't give up your day job !

kevster1009

Thank god you gave your up tootsie....you were beginning to annoy most of us with your sarcastic and unhelpful drivel!

OberonSH

In theory I guess it would work. We could form a non profit organisation, or charity, possibly get the funding to buy the debts from grants etc

Toto

But without wanting to sound like a DCA, what would then stop people from taking out bunches of credit refusing to pay, knowing the MSE DCA will pick it up and they only have to pay back 1/2 or 1/4 of the original debt? We all know that the folks here are 99% genuine but it wouldnt take long before someone came along to abuse the system.

OberonSH

I suppose you could only offer to the service one you'd seen evidence of them trying o pay it off themselves etc, and subject to them continuing to be active on these boards. The details would have to be considered, and we'd probably have to register as a money lending type institution.

Generally I think it's a good idea, but would need some serious thrashing out of details.

ZTD

Toto wrote:

But without wanting to sound like a DCA, what would then stop people from taking out bunches of credit refusing to pay, knowing the MSE DCA will pick it up and they only have to pay back 1/2 or 1/4 of the original debt? We all know that the folks here are 99% genuine but it wouldnt take long before someone came along to abuse the system.

But who would suffer under that scenario? The original lender. How would they protect themselves? Credit records...

Not different at all to the current arrangements.

There are two flaws to the scheme.

1. You need an initial pot of money - banks are not going to lend to a newly formed limited company without lots of collateral.
2. What happens when MSE DCA buys the debt and the debtor refuses to pay. Anyone fancy ringing them up and giving them hell?

artic_fox_2

i think is a great idea but as said needs lots of work to see if propperly viable
You can't get a YES if you don't ask?