A DCA Writes

[DoTheyMeanMe]

Re: A DCA Writes

The question:- What can a DCA say in their letters to persuade persons who want to pay to communicate with them?

Thanks guys.

I see little difference between DCAs and 'ambulance chasers' 'ppi claims companies', etc. Parasites (a person who receives support, advantage, or the like, from another or others without giving any useful or proper return) who are driven by greed with scant regard to providing any genuine service or benefit to the world at large.

As to what they can say, how about:

"You can settle this debt in full for 50p, enclosed is a stamped return envelope?"

[CleverClogs (RIP)]

Re: A DCA Writes

But why should they make 100% profit?

[cardiac arrest]

Re: A DCA Writes

Yep, it's like Fred comes along and says to me , do you want to borrow £10 ? I say, yeah okay, I'm a bit strapped for cash..I'll pay you back at £1pw, is that okay ?

Fred says, yeah fine, here's £10.

3 weeks later I tell fred, sorry I'm really skint and not sure I can pay back the rest of what I owe you..

Fred has a think and says, well to be honest, I can't be arsed to chase this up...so as far as I'm concerned, I'll write it off. Ok, cheers Fred, says I...thanks.

2 weeks later Freds' mate says to Fred, did you ever get that £10 back by the way ?
Fred says, no...he couldn't afford to pay me, so I just wrote it off..

Fred's mate says, look Fred..I'll give you £2 if you tell your mate to pay me it instead.

Fred has a think, £2 ? Yeah why not, that's better than nothing, cheers mate.

A week later Fred's mate gets hold of me and says, Hey you, yeah you, scum face..you owe me £8 and I want it now, or else !! I've paid your mate Fred for this..so cough up ...or I'll have you ..I'll threaten you, phone you day and night, get you into court...even take your possessions away...so pay me , NOW !

[jon1965]

Re: A DCA Writes

But why should they make 100% profit?

Especially when they can make 500%

[Spud]

Re: A DCA Writes

To my mind

The best thing they could do to promote positive communication is to actually read each letter

And then not just send out a Template letter which has no bearing on the debtors situation but actually reply to the letter they have received !

Not too hard is it

How mant times have we sent letters only to get a nonsense template back which does not even tackle the points/Concerns we have raised

[Fred Bassett]

Re: A DCA Writes

Yep, it's like Fred comes along and says to me , do you want to borrow £10 ? I say, yeah okay, I'm a bit strapped for cash..I'll pay you back at £1pw, is that okay ?

Fred says, yeah fine, here's £10.

3 weeks later I tell fred, sorry I'm really skint and not sure I can pay back the rest of what I owe you..

Fred has a think and says, well to be honest, I can't be arsed to chase this up...so as far as I'm concerned, I'll write it off. Ok, cheers Fred, says I...thanks.

2 weeks later Freds' mate says to Fred, did you ever get that £10 back by the way ?
Fred says, no...he couldn't afford to pay me, so I just wrote it off..

Fred's mate says, look Fred..I'll give you £2 if you tell your mate to pay me it instead.

Fred has a think, £2 ? Yeah why not, that's better than nothing, cheers mate.

A week later Fred's mate gets hold of me and says, Hey you, yeah you, scum face..you owe me £8 and I want it now, or else !! I've paid your mate Fred for this..so cough up ...or I'll have you ..I'll threaten you, phone you day and night, get you into court...even take your possessions away...so pay me , NOW !

Would you like to borrow a tenner?

[cardiac arrest]

Re: A DCA Writes

Would you like to borrow a tenner?

ha ha, think i got carried away bit there...

[DoTheyMeanMe]

Re: A DCA Writes

Yep, it's like Fred comes along and says to me , do you want to borrow £10 ? I say, yeah okay, I'm a bit strapped for cash..I'll pay you back at £1pw, is that okay ?

Fred says, yeah fine, here's £10.

3 weeks later I tell fred, sorry I'm really skint and not sure I can pay back the rest of what I owe you..

Fred has a think and says, well to be honest, I can't be arsed to chase this up...so as far as I'm concerned, I'll write it off. Ok, cheers Fred, says I...thanks.

2 weeks later Freds' mate says to Fred, did you ever get that £10 back by the way ?
Fred says, no...he couldn't afford to pay me, so I just wrote it off..

Fred's mate says, look Fred..I'll give you £2 if you tell your mate to pay me it instead.

Fred has a think, £2 ? Yeah why not, that's better than nothing, cheers mate.

A week later Fred's mate gets hold of me and says, Hey you, yeah you, scum face..you owe me £8 and I want it now, or else !! I've paid your mate Fred for this..so cough up ...or I'll have you ..I'll threaten you, phone you day and night, get you into court...even take your possessions away...so pay me , NOW !

Now, Fred's tough mate is a mate of mine too so, to help you both out, I will lend you the £8 quid to pay him off. You can pay me back at 50p a week and I will only charge you 1749% APR. Just send me the log-book for your car and consider it done.
Sorted.

[CleverClogs (RIP)]

Re: A DCA Writes

I will only charge you 1749% APR.

Compared to some companies, that almost seems philanthropic.

[julian]

Re: A DCA Writes

The ability to write off the unpaid debt against tax is the loophole that needs to be fixed. If it is reduced by the rate of corporation tax then it shouldn't be. That would stop the re-finance industry - no tax relief against second-hand debts.

I have never been able to write off the unpaid overtime I have worked against tax. I have produced the valuable service, it has not been paid, so why not reduce my tax bill as my employer won't pay. I could say it is unpaid debt, as most employers tend to go for 'work hard today and get jam tomorrow', but tomorrow never comes.

[jon1965]

Re: A DCA Writes

Have I got this completely wrong, but if a company has a bad debt and they write it off then they reduce their profit for the year and also the value of the company.
Therefore as profit is reduced tax liability is reduced or is it way more complicated than that?

[Never-In-Doubt]

Re: A DCA Writes

Any write off is offset against liability. Easiest way to explain; you owe me £100 and I sell it to a dca for £20. I then close the account and mark -£80 so when the end of year tax return is done I automatically include that £80 loss and thus its deducted from my bill owed as its a pure loss.

So even though I lent £100 and got £20 for the sale, I'm not £80 worse or better off cos I'd have had to pay it in tax but as I wrote it off I didn't so I'm exactly the same.

However the dca can buy it at £20 and then chase the whole balance regardless of the fact the debt is technically exhausted with the OC receiving 100% return so anything made by the dca is in essence free/profit.

That's the size of it.

[ken100464]

Re: A DCA Writes

In the old days they used to burn wizards for trying to make gold out of base metal.

Wonder when that law was changed. Could do with it now.

[jon1965]

Re: A DCA Writes

Thanks Niddy

So as far as the OC is concerned I am correct however the huge con is that the DCA can potentially make huge profits from it. That in my opinion is the immoral bit.
What is a pisser is that if I offered 20% they would tell me to go and do one

[Fred Bassett]

Re: A DCA Writes

Thanks Niddy

So as far as the OC is concerned I am correct however the huge con is that the DCA can potentially make huge profits from it. That in my opinion is the immoral bit.
What is a pisser is that if I offered 20% they would tell me to go and do one

Even worse is the fact that you could offer the same amount to the OC and they would do the same, but they will sell it on to some lowlife debt buyer who will then attempt to make several thousand percent profit on it.