How long before debts are sold to DCAs?

SensiSamurai

Do catalogue / credit card companies always sell debts to DCAs after a certain amount of time of an account being in default?
If so, how long is it before a catalogue / credit card company passes the debt on?

Willing2Learn

There is no specific answer. If you were to either withhold your payment or make token payments, then that would encourage your creditors to pass the debts on a DCA sooner.

Why do you ask? Are you having difficulties with debt repayments?

SensiSamurai

Apologies, I asked the wrong question, what I meant was:
How many missed payments before a creditor would default an account?

SensiSamurai

Surely there must be a limit for missed payments, or debts could increase indefinitely

Willing2Learn

SensiSamurai wrote: »

How many missed payments before a creditor would default an account?

The official guidance from the ICO states that accounts should be defaulted once they are 3-6 months in arrears of the original agreement.

SensiSamurai

Ok thanks for the information

SensiSamurai

& once an account has been defaulted, is there a certain amount of time before they sell to a DCA?

sourcrates

SensiSamurai wrote: »

& once an account has been defaulted, is there a certain amount of time before they sell to a DCA?

Hi,

Let’s get one thing straight here, there are debt collectors, and there are debt purchasing companies.
The former just act as collectors for the original creditor, the latter buy up large portfolios of bad debt, and then inherit all rights and privileges of the original creditor.

Some companies just pass your account to a collector, it may be passed around several collectors over time, others sell on there defaulted accounts pretty quickly, there is no way of knowing what will happen with an individual account.