Why do credit card and loan debts not result in bailiff visits?

london1973

I’m just interested it here, is it a legal point, or something that relates to CCAs?

I had a visit a few months ago (posted here) for a reasonably small amount, further to a CCJ, however i have much larger credit card debts that simply result in endless letters

Are there only certain types of debt that are permitted to be pursued in this way?

Brie

It's only for debts that have been through a court process and most businesses don't want that kind of publicity I think.  So instead they will sell the debt on to a collection agency who might send round the bully boys who have little actual power but manage to scare people into paying up.  

More details here:

Bailiffs - do you have to let them in? What you need to know. · Debt Camel

Grumpelstiltskin

Remember court action and bailiffs don't come cheap so often would be a case of throwing good money after bad and the companies realize that.

sourcrates

Anyone can take legal action against another individual or company and then engage a bailiff should they not pay.

The main reason why creditors don`t always do this for defaulted consumer credit debt is twofold.

Firstly the time and cost of it, literately hundreds of thousands of credit cards and loans default every day, if such action were to be taken in all instances, the court system would break down within a week, it would be over loaded.

Then their is the cost of it, creditors have to pay legal fee`s upfront with no guarantee they will win their case.

Its much simpler, and cheaper, to assign the debt to a collection agency to chase, or to sell the debt and write off the loss against tax.

london1973

sourcrates said:

Anyone can take legal action against another individual or company and then engage a bailiff should they not pay.

The main reason why creditors don`t always do this for defaulted consumer credit debt is twofold.

Firstly the time and cost of it, literately hundreds of thousands of credit cards and loans default every day, if such action were to be taken in all instances, the court system would break down within a week, it would be over loaded.

Then their is the cost of it, creditors have to pay legal fee`s upfront with no guarantee they will win their case.

Its much simpler, and cheaper, to assign the debt to a collection agency to chase, or to sell the debt and write off the loss against tax.

Thanks, but why is it a court point? Presumably a creditor can just pay a bailiff to come and knock on your door, why are their ‘legal fees’ to be paid upfront, i am sure they need to pay some sort of cost to engage a bailiff but legal costs?

london1973

typo *’there’ legal fees…. 

Grumpelstiltskin

Bailiffs can only be involved if there has been a CCJ which hasn't been paid, so cost of court  action first then cost of bailiffs second.

london1973

ahhh i see, that explains it!

sourcrates

Yes, apologies, as Grumple explains above, there is a court process to go through in order to engage a bailiff, or indeed to enforce any legal agreement, only if you fail to pay a court judgement, which must be obtained first, can further action commence.

The only exception to this is when bailiffs act on behalf of councils to collect unpaid council tax, they do so using what`s known as a liability order, under powers granted to them by Government, without the need to first obtain a CCJ, this is exclusively for the collection of Council Tax.

[Deleted User]

london1973 said:

typo *’there’ legal fees…. 

You were right the first time! 😊

london1973

[Deleted User] said:

london1973 said:

typo *’there’ legal fees…. 

You were right the first time! 😊

hahahaha! but actually i am not- although when i re-read it again i thought oops (i was right 1st time), however re-read it carefully and i wasn’t 

getting very confusing!