What legal hold do debt collection agencies have?

Inspired1115

Hello there, new here and full of questions! We have an old credit card debt originally with HSBC about 10 years ago which has been bought and sold by various debt collection agencies over tbe years. We would like to know how much of a legal stranglehold the debt collection agency has over us. It's £1,345 and we pay £5 a month.

Thrugelmir

Legal in what way? Your token payment acknowledges that the debt is owed.

CLAPTON

Inspired1115 wrote: »

Hello there, new here and full of questions! We have an old credit card debt originally with HSBC about 10 years ago which has been bought and sold by various debt collection agencies over tbe years. We would like to know how much of a legal stranglehold the debt collection agency has over us. It's £1,345 and we pay £5 a month.

the courts have powers, debt collectors have none until they get a court order.
so it depends upon the details of your debt history.

andyfromotley

On a more philoshopical point their activity is lawful (ie not prohibited by legislation) in the wider sense that they are acting for the creditor in the lawful recovery of a debt.

Their activity has been regulated by the FCA since the 1/4/14.

But their legal powers to do anything other than to ask you to pay the debt come with possession of a court order.

oatman

Inspired1115 wrote: »

Hello there, new here and full of questions! We have an old credit card debt originally with HSBC about 10 years ago which has been bought and sold by various debt collection agencies over tbe years. We would like to know how much of a legal stranglehold the debt collection agency has over us. It's £1,345 and we pay £5 a month.

Ask for a settlement figure.

paulofessex

you do not have to provide them with details of you incoming and outgoings. As long as you continue to pay the £5 per month l would ignore all letters asking for you to contact them to review your current payment plan.

poppasmurf_bewdley

Send the debt collection agency a CCA request.

If they can't provide it, then you don't have to pay.

https://forums.moneysavingexpert.com/discussion/709639

sourcrates

poppasmurf_bewdley wrote: »

Send the debt collection agency a CCA request.

If they can't provide it, then you don't have to pay.

https://forums.moneysavingexpert.com/discussion/709639

Beat me to it poppasmurf ��

Ten years old ? They will more than likley be unable to produce the relevant paperwork, so you should do this straight away, tomorrow, send by recorded delivery.

DCA's have no more legal power than you or I do, however they can take you to court for non payment, should they so choose.

That is unless they can't produce a copy of your original agreement, then they are tied up like a kipper lol, and can't do anything to you.

SamGR

Why not Pay back what you owe?

sourcrates

SamGR wrote: »

Why not Pay back what you owe?

I look at this way,

The original creditor thought that it was just not worth recovering.
They effectively wrote off the debt, and also collected tax relief on it.

They then sold the account on to a debt collection agency, for a fraction of the original value, that DCA then attempts to collect the full amount from the OP.

This is where i lose all sympathy for them, although legal, it's a very gray area, and in most other situations would be frowned upon.

Debt collectors feed off the misery of others, they lie, cheat, and are basically dishonest, only towing the line when threatened with tougher regulation, I can't see a scenario where I would come down on the side of the debt collector, over the debtor.

poppasmurf_bewdley

SamGR wrote: »

Why not Pay back what you owe?

sourcrates wrote: »

I look at this way,

The original creditor thought that it was just not worth recovering.
They effectively wrote off the debt, and also collected tax relief on it.

They then sold the account on to a debt collection agency, for a fraction of the original value, that DCA then attempts to collect the full amount from the OP.

This is where i lose all sympathy for them, although legal, it's a very gray area, and in most other situations would be frowned upon.

Debt collectors feed off the misery of others, they lie, cheat, and are basically dishonest, only towing the line when threatened with tougher regulation, I can't see a scenario where I would come down on the side of the debt collector, over the debtor.

I'm in agreement with Sourcrates on this one.

I would normally say that people should pay what they owe, but in cases like this, to me, they don't owe anything to the debt collectors.

Debt Collectors buy up debts for pennies in the £ and then try and chase the whole amount. To me, it's like buying a knackered car from a scrapyard and taking it back to the manufacturer and demanding they put it back into full working order free of charge.

They are the scum of the earth, second only to parking companies who charge a motorist £75 for overstaying in a free car park for a few minutes.

Both types of organisation are trying to wring the maximum amount of money from people who are frequently unable to pay.

They are, to steal Ted Heath's phrase from the 1970's, the unacceptable face of capitalism.

Hopefully, the OP can get out of paying this 10 year old debt which the original provider has already written off. Good luck to him (or her).