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Are DCA's allowed to add/charge interest?
zenshi
Posts: 1,133 Forumite
As title really, are debt collectors allowed to add interest and charges onto your debt?
LBM.....sometime in 2013 £27,056. 10 creditors
June 20.....£7,587.....3 creditors left 72% paid
£26,200 on interest only part of mortgage (July 16)...will chip away £17,103
£49,200 repayment mortgage ( July 16) £37,764
June 20.....£7,587.....3 creditors left 72% paid
£26,200 on interest only part of mortgage (July 16)...will chip away £17,103
£49,200 repayment mortgage ( July 16) £37,764
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Comments
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They can but the charges most probably would be unenforceable in court. They'll only be able to get a judgement for the original debt plus court costs. It depends on your agreement with the original creditor if they can pursue interest and debt collection fees and charges. If you agree to pay the debt through a debt collector and they, for example, have a 3% charge for paying by credit card you can either choose to pay the debt including the fee or not pay the debt at all and they'll have to go to court to get the money. By the time it's got that far they'll probably be happy just to accept a portion of the debt they purchased in full and final settlement instead of the hassle of going to court to enforce it.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
I have heard of cases where interest and charges have been added, and it does depend on the original contract you had with the lender, but normally what ever the balance of account is when the DCA buys the debt, is usually the amount they chase you for.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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it's surprising how these added charges and 'administration' fees can add up. I was being chased by capquest for a debt with aqua credit card; the default balance was £1800, but by the time it had been sold on several times to different DCA's the amount demanded was over £2600.They try it on of course and it's up to all of us to learn a little about what is and what isn't allowed by these DCA.0
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you have to take into account, any actions incur collection costsDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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