Debt Recovery Companies

[derekpara]

If a Debt Recovery Company/Agency buys a debt from, say, Nokia , to whom, for argument's sake, I owe £150, and demands an inflated figure, say £500;

(a) What is the legal position ?

(b) What should I do about it ?

A friend has a problem like this. She genuinely forgot about the debt during a house move etc

[Kathyan]

Offer a 'full and final' settlement figure. They will have bought the debt for a lot less than they are asking!

[factor-fiction]

The only way they can ask for more than the debt+interest is if the contract specified some form of default charge.
Explain the oversight and offer a full and final settlement figure, but I suggest this should be at least as high as the true debt but i know some who like a challenge do incur debts and then try to get away with reduced payments

[derekpara]

Thanks, Kath, but the contract was with 'Nokia' - not the debt recovery company. Surely I owe THEM nothing.

[factor-fiction]

You won't get away with that one, I'm sure. The debt still exists - it was just sold on, and the contract probably provided for this.

[Mass_Hysteria]

I think derek is correct, the debt is with Nokia. More fool the debt recovery company for buying it.

[Kathyan]

If the debt has been sold to the debt recovery company then she will owe them not Nokia.

[factor-fiction]

Selling on debts is not uncommon and I'm certain it is legal provided it has to be done properly.

i'm sure she was under an obligation to keep track of her bills and inform Nokia of her change of address. I don't think it would be unreasonable for Nokia to try to recover some of their costs associated with sending out letters to the old address and the loss it incurs when selling a debt on at below the amount it is owed

[boxtops]

The debt company has been sold the debt by Nokia. I believe they can add their recovery fees etc. - there has to be something in it for them. Contact them and negotiate.

[tonywiltshire]

As FF says buying debts is very common, quite legal and often done in bulk. The debts are purchased at an agreed rate according to the perceived recovery amount and you may expect the new owner of the debt to try to recover the full amount by being aggressive but as has been said they may well also consider a partial offer, particularly if over the price paid for the debt. The positive aspect of this is that the original owner of the debt has probably decided they will not realise the full amount and has passed it off, which may happen a number of times, the negative side is they have not written off the debt.

[ST24]

Call the debt collector and tell them that you want to pay the debt - that's very important. THEN negotiate how you will pay it. They will probably mention how much the debt will increase PER DAY so don't delay in contacting them.

[derekpara]

T
My thanks to everyone.

D

[factor-fiction]

Happy to help.
Tony Wiltshire knows his stuff on this topic.

[Peter Pedant]

TW - Saint Tony I call him knows....everything

A debt, der', can be traded as in above to your surprise as it is a chose-in-action which basically is the set of things which can be legally traded and litigated over.

Does NOT require your permission - in exciting the Good Wife, Louis Canning has unknown to most people bought Lockwood Goodhart's debt ($60m) and is now trying to close it down.....watch breathlessly Thur nights.

b) go for a lower settlement figure as FF says they will bought it for much less and are just want a decent money-lenders' profit.....
I mean if you have the mun-mun pay off the (now negotiated reduced debt) debt and get the debtor to pay your regularly (at 5%) and it gets rid of the problem. This last bit is unlawful unregistered money lending but i have to say really gets rid of the problem.

Debts - really bad things to have

[boxtops]

Peter - what does this mean, is it a typo? If you pay off the debt (lower level) what's the 5%?

^^get the debtor to pay your regularly (at 5%)

[factor-fiction]

I think he means rather than pay instalments pay it in full and ask the agency to pay him interest!

[THECORBYLOON]

I think what is meant is to pay off the debt for the pal and then to get the pal to pay dp at regular intervals wi 5% interest OR pay regular installments of 5% of the debt to dp.

[boxtops]

Corby, thanks - I was forgetting that this is a third party's debt, not derek's.

[tonywiltshire]

Peter,
I can give but one assurance, other than not knowing everything and that is:
I shall pull to one side on my bicycle on the Kingsway where I join it at Burnage, M19, when your cavalcade passes by, and will remove my hat as you pass or if not wearing a hat I will grasp my forelock in reverence, which I trust will be acceptable.

[Peter Pedant]

I am learning the Papal benediction
and as I pass, I will say something in Latin.

[princemac]

Sorry to everyone who states this debt is live after been sold,yes a lot of debt firms do sell debts between themselves but its still illegal,the 1884 Bills and Exchange law clearly states debts cannot be sold,bought or transferred,so this debt has been wiped out when the debt company bought it off Nokia.I would write to this company explaining the above to them and state you will charge £100 for every letter you send in relation to this account.