Letter from debt collector - Do they own the debt?

madasaboxoffrogs

I've received a letter from a debt collector about my bank account, who I've owed money to for a couple of years now...does this mean that they now own the debt? How do I find out?
Thanks.

rog2

madasaboxoffrogs wrote: »

I've received a letter from a debt collector about my bank account, who I've owed money to for a couple of years now...does this mean that they now own the debt? How do I find out?
Thanks.

Hi madas - Receiving a letter from a debt collector does not, necessarily, mean that they 'own' the debt - they could just be trying to collect on behalf of the bank.
It really depends on what the letter says - we probably need a bit more information before we can advise on that one. Who is the Debt Collection Agency and how is the letter worded?
Are you disputing the debt?
Have you been informed, by your bank, that they have 'sold the debt' or that they are 'instructing a dca to collect on their behalf'?

madasaboxoffrogs

Hi, and thanks for your reply......
The letter was from "Metroploitan Collection Services Ltd" and goes lik this

"We are dissaapointed to note that we have been unable to come to an arrangement to clear the outstnding balance on your account (£7144.89).

You must telephone us immediately on freephone (number) to confirm when full repaymet will be made.

If you do not contact us we intend to instruct DG Solicitors to issue legal procedings and apply for an attachment of earnings order (can they really do this? they dont know my outgoings...like £740 month in childcare)

We should explain that an attachment of earnings order mnay be sent to your employer by the court. It tells the employer to take an ammonut from your wages each pay day and send the money to court as payment towards your debt.

Additional fees and costs will be aded to your account should this course of action be necessary."

Thanks again.

lemma1968

MCS are indeed HSBC's in house collection agency! We are dealing with them at the mo.;)

rog2

Hi Madas - Metroplolitan Collection Services Ltd. (MCS) are, in fact, the in-house debt collectors for HSBC - I have had the 'dubious' pleasure of dealing with them, myself.
I am not sure, but I would think that DG Solicitors are, also, in-house and probably only exist as computer software.
The 'implied' court action is a long way off, as they would need to issue you with a summons for a County Court Hearing, at which point you would have the option of entering a defence, if you dispute any of the 'alleged debt', or making an offer, to the court, for instalment payments. Attachment of Earnings Orders are NOT automatically issued as a result of a County Court Judgement - this, in my opinion, is a scare tactic.
Okay - that said - you need to ask yourself what you want to do about this 'alleged debt':
Is the 'alleged debt' correct?
How much of the 'alleged debt' is made up of charges, which you may be able to claim back?
Can you afford to make a monthly payment towards this 'alleged debt'?

I think that you should contact one of the Debt Counselling Charities, such as National Debtline, CCCS, Payplan or your local CAB, who will give you free, professional advice on what your options are.

In the meantime, if this debt is the result of an overdraft on your current account, and your salary/benefits are normally paid into this account, you should open an account with another bank and arrange for all payments to be made into the new account.

Also, you should consider posting your SOA (statement of affairs) listing income, expenditure and debt, in order that posters here may advise.

rog2

Sorry fermi, and Lemma - I was still typing as you posted - my wife tells me I 'sleep slow' as well.:rolleyes:

fermi

lemma1968 wrote: »

MCS are indeed HSBC's in house collection agency! We are dealing with them at the mo.;)

In that case (if the OP's debt was with HSBC), then the answer is that the debt has not been sold on and is still owned and being collected by HSBC.

madasaboxoffrogs: Most banks have in-house collection departments and legal sections. They normally give these frightening names to intimidate you and make you think that the debt has been passed on, whereas you are in effect still dealing with the original creditor.

EDIT:

rog2 wrote: »

Sorry fermi, and Lemma - I was still typing as you posted - my wife tells me I 'sleep slow' as well.:rolleyes:

And you had answered while I was typing rog2, so 1-all I think.

lemma1968

rog2 wrote: »

Sorry fermi, and Lemma - I was still typing as you posted - my wife tells me I 'sleep slow' as well.:rolleyes:

Great minds think alike.....or is fools never differ?:p :rotfl: