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Paying a debt recovery agency
runnersbeen
Posts: 40 Forumite
in Credit cards
HI,
my company have a debt to pay to a debt recovery agency. Can it be classed as a purchase if I get a 0% interest card for purchases, pay the debt agency (as the daily interest is extortionate) can this be classed as a purchase??
my company have a debt to pay to a debt recovery agency. Can it be classed as a purchase if I get a 0% interest card for purchases, pay the debt agency (as the daily interest is extortionate) can this be classed as a purchase??
0
Comments
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Speak to your card provider as to how they will classify it. I would think cash advance is more likely.
If it is cash, then look for a money transfer option, although there will be a fee.0 -
Below is my original answer. But then I noted you are paying "extortionate interest". What kind of debt is it - is it from a pay day lender? In my experience, debt collection agencies rarely add "extortionate" interest - though there can be other charges. If it's from a lender, then I think cash advance is more likely.
Original answer:
[I believe it goes through as a purchase. This is based on a single experience a few years ago. My friend paid over the phone by CC.
The agencies just want the money. The odd extra % because it goes through as a purchase rather than a cash advance doesn't bother them. I suppose the CC might indeed decide to classify it as a quasi-cash transaction, but they didn't in my friend's case. I think they would struggle if the T+Cs are silent on the matter - unless of course the original debt was a gambling debt. Really just a purchase where you are paying late.]0 -
The debt is occuring £1 day on £5000 we got behind on a payment plan for some machinery and the loan company passed it onto the debt collectors so now we have a list of machinery to the value and if we dont keep up with the payment they will take the machinery0
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runnersbeen wrote: »HI,
my company have a debt to pay to a debt recovery agency. Can it be classed as a purchase if I get a 0% interest card for purchases, pay the debt agency (as the daily interest is extortionate) can this be classed as a purchase??
What is the name of the debt recovery agency?
Have they said that they accept credit cards as payment?I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0 -
runnersbeen wrote: »the daily interest is extortionate
£1 per day on £5K is about 7-8% APR, which doesn't sound much like extortion to me!runnersbeen wrote: »The debt is occuring £1 day on £50000
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