DCA Advice

MisterBaxter

A friend has asked me for some advice on an issue with a DCA. I've had my problems in the past and have overcome them but I don't know how to answer this one for them.

It relates to a debt from an old credit card that has been sold on to a DCA; my friend is struggling to remember the details of the debt as she had a number debts with a number of different lenders. She has asked for a copy of the agreement but this hasn't been supplied; the DCA only send a statement of account, this is their statement and not one from the orginal CC company. In the mean time she has been making token payments to the DCA, I rightly or wrongly advised against this at the time as they hadn't proven the debt but she was tired of the constant calls and letters; also knowing that she had run up a number of debts she suspects that it is legitimate.

It's hard to establish but the original debt seems to go back at least 6 years as there is no sign of the original default on her CRA reports and the DCA doesn't seem to be reporting either.

As she doesn't remember the debt in the first place she doesn't know when the card was taken out, or if it was taken out.

I suggested CAB but they wanted details that she couldn't provide as the DCA haven't provided them.

Any suggestions on where she can go from here?

National_Debtline

Hi

She could start by informing the DCA that she has no knowledge of the debt and requesting that they provide evidence of her liability, otherwise she’ll start the complaints process.

We have a sample letter for that purpose here:

www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Complaining-to-debt-collection-agencies-that-you-do-not-owe-the-debt-(sole-name).aspx#

To request a copy of the CCA agreement she could use the sample letter on this factsheet plus a payment of £1. The original signed agreement doesn’t necessarily have to be provided under a CCA request but it should have all the relevant terms and conditions etc.

www.nationaldebtline.org/EW/factsheets/Pages/39%20EW%20Credit%20agreements%20-%20getting%20information/Default.aspx

Sometimes debts are only shown on a credit file held by one of the three main UK credit reference agencies so it’s worth checking all three for the full picture. The three credit reference agencies are Experian, Equifax and Call Credit.

If she hasn’t paid or acknowledged the debt for 6 years or more and if she hasn’t had a CCJ for it the debt will be statute barred if she lives in England or Wales. The time limit is 5 years if she lives in Scotland. She could send the sample letter from our Time Limits factsheet and the onus is on the DCA to prove it isn’t statute barred or cease collection. This is the England and Wales version.

www.nationaldebtline.org/EW/factsheets/Pages/25%20EW%20Time%20limits%20for%20recovering%20debts/Page-02.aspx


James
@natdebtline

sourcrates

Hi,
You should never just start paying a debt, without the company asking you for payment, first proving you owe the money in the first place.
CCA request is the right way to go here, if this was an old account not acknowledged for 6 years or more, then it could be statute barred, you will need to see if there was a clear six year period between the last acknowledged payment date, or the cause of action date, and the date she started making token payments to the DCA.

If there wasn't, then she may of re-started the clock by paying them.

MisterBaxter

@sourcrates - My view was also that she shouldn't have paid anything but I've also been on the wrong end of the DCA calls myself so I know how much pressure they put you under and how the stress can make you want to do just make them go away.

I know she has requested the information before from both the DCA and the CC company that supposedly held the original debt but I'll get her to do the full CCA letter; presumably it isn't going to be statute barred because as I said she has been making token payments.

I'm guessing that it would be best to cease any further payments until they come up with the information as presumably this will focus their minds on making a response.

sourcrates

MisterBaxter wrote: »

@sourcrates - My view was also that she shouldn't have paid anything but I've also been on the wrong end of the DCA calls myself so I know how much pressure they put you under and how the stress can make you want to do just make them go away.

I know she has requested the information before from both the DCA and the CC company that supposedly held the original debt but I'll get her to do the full CCA letter; presumably it isn't going to be statute barred because as I said she has been making token payments.

I'm guessing that it would be best to cease any further payments until they come up with the information as presumably this will focus their minds on making a response.

Yes, that's the way to go, make sure its a formal request, National debt-line, i believe have a good template letter, and don't forget to enclose the £1 statutory fee.