Debt buyers v collectors?

MonaghanBoy

I have 3 credit card debts managed by debt buyers (Cabot and PRA) and 2 being chased by Opos collecting on behalf of Tesco & Nationwide (both defaulted).

Should both Tesco & Natiownide debts be enforceable, my intention is to make monthly payments and save for f&f offers. When do I start engaging with them? What powers do collectors have? Can they take legal action? Do collectors entertain f&f offers? Do I just sit and wait until they are sold on to a buyer?

fatbelly

Collectors just work through their standard letters

If you send an offer to them they will pass it on to the creditor and get back to you.

sourcrates

Collectors have the power to write to you, and ring you up, send you emails and annoying texts, but that`s it, nothing else whatsoever, nothing, nada, zero, zilch.

They have a certain degree of pre-agreed leeway, but mainly take orders from their client, the debts are only assigned to them equitably, not legally.

Only the owner of a legally assigned debt can take legal action.

The rest just pretend they can.

MonaghanBoy

Thank you both. Hypothetically speaking, what's the likelihood of the original creditor taking legal action? Selling to buyers the more likely outcome at some point? 

I'm trying to decide whether to start engaging with them now, but given they are the original creditor, are they really going to entertain f&f offers? Both defaulted c15 months ago.

sourcrates

Only lenders who engage in peer to peer lending typically will take legal action as a first response.

High street lenders much prefer to use the debt collection route instead.

Best advise if you want to settle for as little as possible, let everything default, let everything get sold on to a 3rd party, pay 3rd party small figure per month for say 8/9 months, usually, depending on the company, offers will start around about that time.

See what develops from that.

MonaghanBoy

Fantastic,  thanks very much

Rob5342

The letters from collectors are often carefully worded to imply impending legal action even though they aren't able to take any. "You have 14 days to reply before we take further recovery action", and then the further recovery action is just another letter offering you a discount.