View Full Version : true value of a sold debt?

30-12-2007, 01:40 PM
just thinking aloud here and from experience with some claims where i have been told i cannot claim something i have not paid when an account is written off or sold.

when a debt is sold to a DCA, can it be argued that the TRUE value of that debt is the amount they have paid for it, minus any charges or the percentage value they have paid for it minus any charges?

i.e. balance of 1000 including 200 charges at bank A written off. Balance moved to a 'sell to DCA' ledger. Debt sold for 50 (5%) and move to 'loss' ledger. Or balance sold for 50 and remaining 950 moved to a 'loss' ledger to reclaim tax allowance and insurance. However the bank does it but in one case it is all written off and in another only 95%. I shall assume the second here.

DCA then asks me for 1000. I pay up or say no. Is the DCA only entitled to 50 plus a reasonable profit percentage or 5% of 800 (1000 - 200) which is 40 plus a small profit? In asking for the whole amount, are they not asking for money which the bank has already claimed tax relief for?

then into this falls the refund of my charges, say 350 with interest which the DCA may receive. Are they entitled to this as it should never have been a part of the debt anyway?

is it wrong to go to court and state you will pay the purchase price of the debt and a small profit, e.g. 30%, ONLY after the DCA has proven ownership, as you believe the rest has received tax relief and is not a part of the debt? That way, in the above example, i would pay 65 and the DCA makes a 30% profit which is very fair and reasonable.