How Do Debt Recovery Agents Work?

[Iggle Piggle]

If I sign a contract originally with a service provider and default on the final bill, how does the contract to take my money transfer from the service provider to the debt recovery agent ? I have not signed any new contract.

(I guess there's something in the small print in the original contract but that was signed some 20 years ago and subsequently lost!)

[ummmm]

I believe the original service provider sells the debt on to the debt collection agency.

[Iggle Piggle]

That's interesting Ummmm, how do they pursue the money without a contract ? If I refuse to pay either debtor, who sues me ?

[Jackdaw33]

They do. They sell them on at silly rates like 10p in the pound. Thus, if successful in obtaining the whole sum the agency keeps 90% and the original company gets 10%. It is usually more economic for businesses to do this than pursue the matter through the courts. These agencies are little more than parasites.

[ummmm]

Because they are selling a debt....not a contract.

[hc4361]

The debt isn't always sold, the lender can engage a debt recovery agent to act on his behalf. The whole thing is explained very well here:
http://debtcamel.co.uk/sold-to-dca/