DCA charges

topher40

Hello all. A little bit of help is needed here. I have an outstanding balance of £1800 on my student loan account that has been passed to Mackenzie Hall and the debt seems to have shot up to £2400. The loan company and Payplan who are acting for me say the debt is £1800 so it seems Mack hall have added on £600. Can they do this? Is it legal as my debt is to the loan co not Mack Hall. Does anyone have any ideas as to how I can get this sorted out.

Thanks

**Amy**

HI

From what i can see there its not strictly legal (but im not 100% on this).

http://www.oft.gov.uk/shared_oft/reports/consumer_credit/oft298.pdf

Its a PDF document.

Or its here:

1.10 In the Office’s view, there is no legal basis for a creditor (or a debt collection agency acting on the creditor’s behalf) to claim collection costs from a debtor in the absence of express contractual provision in the agreement between the debtor and the creditor. If there is no such provision, then collection charges cannot be demanded as a debt due under the agreement

Hope this helps.

x