Can a debt be passed onto a DCA if its in dispute with OC?

MUMZ2BEE

I have some debts with Halifax and have written to them for verification of the debts.

They have not responded fully, 1 credit agreement they have provided has not been signed and properly executed by them and may also be missing perscribed terms as it was done online in September 2006.

2. Loan agreement bears an incorrect address at time of execution by the bank, I also have concerns they lent me money I could not afford to repay as I fell into difficulties soon after loan was granted.

1 of my debts has been passed onto Moorcroft Debt Recovery Limited whilst the account remains in dispute with the bank.

I have also written the same letters to Moorcroft again outlining the need for verification that they are collecting the debt; Moorcroft are refusing point blank to comply and have also made an unauthorised credit search on my file.

Moorcroft claim that they have not purchased the debt, so why do an unauthorised credit search?

My main question is this; because the debt was in dispute with Halifax at the time it was passed to a dca for collection is this legal of Halifax?

I thought that it was illegal to pass a debt on whilst it was and remains in dispute.

Can anyone help!?

January2015

Not sure of the answer but I am currently disputing a debt with MBNA - they know it's in dispute and they have promptly sold it on. So now I go through the same process with the DCA until they realise they've bought a dud debt and send it straight back to MBNA

sourcrates

Hi,

It's not illegal, but it is against FSA rules on fair debt collection practices.
Moroncroft will only be acting for Halifax most likley, a simple letter or email stating account is in dispute with original creditor, will take the wind out of there sales.

If you haven't already complained to Hellifax, do so in writing, they have 8 weeks in which to respond and give you a final responce.

If after this time you remain unhappy, you can take your complaint to the financial ombudsman.

MUMZ2BEE

sourcrates wrote: »

Hi,

It's not illegal, but it is against FSA rules on fair debt collection practices.
Moroncroft will only be acting for Halifax most likley, a simple letter or email stating account is in dispute with original creditor, will take the wind out of there sales.

If you haven't already complained to Hellifax, do so in writing, they have 8 weeks in which to respond and give you a final responce.

If after this time you remain unhappy, you can take your complaint to the financial ombudsman.

I've told Moorcroft the account is in dispute with their client Halifax, and they are ignoring this matter.

FOS are a waste of space been with them twice over 2 separate complaints they sided against me.

I've also disputed the debt with Halifax and they have had cease and desist letter to stop harassing me. Halifax wont comply for their verification against me.

Is it worth complaining to the FCA!?

sourcrates

FSA won't entertain individual complaints unfortunatly.

They only act when a sufficient amount of complaints have been received against a particular lender, so not really an option.

What exactly is the nature of the dispute ?
From what I can gather you are claiming your credit agreement is deficient in some way, and also unaffordable lending.

I can tell you now that neither the Halifax or the FOS will look into enforcability issues with your credit agreement, they will look into the affordability aspect, so you know the procedure to follow there, as you've done it before.

To check the enforcability of your credit agreement I would post on leagal beagles website :

http://legalbeagles.info/forums/

They are more geared up on legal issues.

fatbelly

Ultimately, enforceability has to be settled by the courts, and legalbeagles are good if it gets to that stage.

Halifax do not often take court action so, unless they sell they debt to someone who does, like Lowell, then you are likely to just go around in circles.

I agree with the OP that FOS are not likely to be much help here.

fermi

MUMZ2BEE wrote: »

I have some debts with Halifax and have written to them for verification of the debts.

A CCA request, or something else?

Are these actually yours? I presume so given the rest of the context here?

MUMZ2BEE wrote: »

They have not responded fully, 1 credit agreement they have provided has not been signed and properly executed by them and may also be missing perscribed terms as it was done online in September 2006.

Carey vs HSBC is the High Court

(3) The creditor need not, in complying with s78, provide a document which would comply (if signed) with the requirements of the Consumer Credit (Agreements) Regulations 1983 as to form, as at the date the agreement was made;

MUMZ2BEE wrote: »

2. Loan agreement bears an incorrect address at time of execution by the bank, I also have concerns they lent me money I could not afford to repay as I fell into difficulties soon after loan was granted.

From same case:

(2) The s78 copy must contain the name and address of the debtor as it was at the time of the execution of the agreement. But the creditor can provide the name and address from whatever source it has of those details. It does not have to take them from the executed agreement itself;

MUMZ2BEE wrote: »

I have also written the same letters to Moorcroft again outlining the need for verification that they are collecting the debt; Moorcroft are refusing point blank to comply and have also made an unauthorised credit search on my file.

Verify, how? Have they not been contacting you for payment?

MUMZ2BEE wrote: »

My main question is this; because the debt was in dispute with Halifax at the time it was passed to a dca for collection is this legal of Halifax?

Perfectly legal, if possibly unethical.