How much do Banks tell DCAs?

[Fred Bassett]

I'm intrigued by this. How often have you sent a CCA request or one of Curlyben's "I'm bemused" letters only for a DCA to write back, "putting the account on hold" while they contact the bank to get the details.

 

So it appears that the bank passes the account to a DCA giving only the bare minimum of detail, i.e. account number and amount owing. In the last week I've had one DCA asking me to give them details of what my dispute with the bank was about, which I politely declined to do. Some debts go from the bank to one DCA, back to the bank, on to another DCA and so on and so forth.

 

That's one scenario, but the other is where the Bank sells the debt. Do DCA's carry out any kind of due diligence activity in respect of what they are buying? I suspect not because I would imagine that there is still a very large proportion of people who cave in because they are unaware of simply how powerless DCAs actually are. DCAs will understand this and know that, say, 90% will pay and the other 10% (CAGGERS and the like) they will have to give up on. It's a risky business though because the more people that find sites like this the more it will cost them to collect and the less likely it is that they will do so.

 

There may come a day when the likes of Cabot will think twice before they buy up debts wholesale because eventually they will get well and truly burned.

 

Does anyone know how all of this works?

 

Regards.

 

Fred

[junebug]

I don't know how it works, but this is something I have spoken with my partner & parents about. I am currently having dealings with CapQuest, who bought what seems like my name & a random figure from Natwest.

 

They could not supply me with the account number, and although I was told that Capquest own the debt, they have to contact Natwest to get the statements, CCA etc etc. I am also able to contact Natwest about this matter too. Very odd indeed.

 

Unfortunately, Natwest failed to tell Capquest the debt was in dispute too. Oh dear

 

So I'm trying to figure out who I have the bigger problem with now. More people for me to annoy though

[RedVixen]

I think I heard they buy on mass on a CD or something so it sounds like it is probably an agreed total ammount but they don't know any client details til they download the information and they they only make a profit out of it because not enough people know their rights etc

 

Probably wrong but that is the impression I get

[RedVixen]

MBNA sold mine to Equidebt - I sent the bemused letter about 2 months aog got the its on hold while we contact MBNA and nothing since - whether this means it has gone a way I don't know

[jadzia.dax1]

Does anyone know how all of this works?

 

 

There is a very interesting thread in the General debt issues sticky’s written by someone who worked as a DCA staff member and later as a supervisor...

 

It gives a great insight into how it all works at the DCA's...it's well worth a look

 

Inside a DCA!

 

Edited December 19, 2008 by jadzia.dax1
typo

[angry cat]

I believe that the Banks sell/novate large blocks/portfolio's of what they call distressed debts to DCA's;

these debt buyers are only given minimal information;

amount and linked addresses.

 

It bit like Arthur Dailey going to a secondhand car auction;

Arthur buys a mixed job lot of motors;

some good, some bad and some are total write offs.

 

Remember, these DCA's only pay a small percentage and then chase for the whole amount...good game;

DCA's also pay their staff a pittance plus commission, or commission only.

 

This is a job for desperate people, they have to have their own car and phone.

 

Look in your local paper/free paper, there are always ads.

 

You would have to be at the bottom of the pile to apply for such jobs.

 

AC

[PGH7447]

You would have to be at the bottom of the pile to apply for such jobs

 

Not defending the the threat monkeys, but there will be an awful lot of people at the bottom of the pile soon, the way the credit crunch is going, so the DCA's will have a large pool to choose from

[junebug]

I'd rather work in muckdonalds that with the kind of people who work at a DCA

[payback68]

Very intriguing what you guys have stated..

 

This is my view on this particular scenario. Firstly the sheisters i am dealing with are HSBC, with an original debt of roughly 4000gbp.

After several months of making payments according to the payment plan i set up, they sent me a "one off" settlement amount, which was in the region of 900gbp. Of course at the time i was unable to settle the account and furthermore wondered why they offered this reduced amount to settle the outstanding balance?.

 

Within a month or so i received a letter off Newman & Co. stating that HSBC have passed the Account over to them for collection and the outstanding balance is 2369.85. Where do these people get their figures from?.

In my experience i assume that the Banks have two baskets with debtors.

 

No.1- Possibly we can chase them for this, so lets keep hold of that.

No.2- Sell this one on to a DCA at a severely reduced cost, and let them chase it up.

 

The most comical thing about all this is that when the DCA purchases the Debt the majority of the time they do not get the relevant paperwork from the Bank to collect the Debt by legal means. Instead they try bullying people into paying them by harassing them over the phone stating that they will be sending somebody out to make a personal call, thus making a inventory of what you have which is of value to cover the Debt. As far as i know they can only do this by making a mutual aggreement with yourself and setting up a date, furthermore you can ask a police officer to attend also.

 

Junebug "muckdonalds"?. I would rather be s deckhand on a submarine than work for one of these companies.