A DCA Writes

[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.

[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?

[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.

[CleverClogs (RIP)]

Re: A DCA Writes

I will only charge you 1749% APR.

Compared to some companies, that almost seems philanthropic.

[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.

[cardiac arrest]

Re: A DCA Writes

Would you like to borrow a tenner?

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

[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?

[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

[jon1965]

Re: A DCA Writes

But why should they make 100% profit?

Especially when they can make 500%

[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 !

[CleverClogs (RIP)]

Re: A DCA Writes

But why should they make 100% profit?

[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?"

[jon1965]

Re: A DCA Writes

Profit, that is what is wrong with the system and until that changes I do not think that anything will change. Sure a DCA will be all warm and cuddly if that is shown by a profit growth faster than other DCA's .

I am sure that the employees are told we are all debt dodgers who lie and cheat all the time and it is a battle of wits. We can obviously all afford to pay off our debts at a reasonable rate but just pretend not to have any money and finally I am sure they are told he who shouts loudest gets most.

Unfortunately the few that do try to cheat the system give us all a bad name

[julian]

Re: A DCA Writes

To steer us back on track, I can see where the minds are wandering. Every body is working hard to stay alive, and in a manner they have become accustomed to. Customers and money are commodities, they are traded electronically by the financial institutions. It is their job. They do not see the person, and could not do their job if they did. The world has changed without us realising it.

Also, individuals have guilt that forces us to try and do the right thing and honour our debts - could it be that there are ex-nuns in charge of the 'charity'? They know how to instill guilt and, as you may know, we are a sinful bunch and will never get any better, but as long as we humiliate ourselves we may just get a glimpse of heaven, from whence we can see our families paying out the DCAs from our meagre estate. Once the guilt gets you, it can never leave.

Charity begins at home, and that is what the DCAs are pursuing: the slice of real estate you may partly own, as you could not get on the rental ladder. So securing the unsecured, high-interest-bearing debt against a property is yet another way to name and shame, as the Land Registry will let your name out, and the vultures that read the court lists will try and entertain you with their offers of help

The workhouses were charitable institutions weren't they? The masses were only separated from the workhouse by 2 weeks wages, and once in they rarely came out. The local dignitaries who gave money flamboyantly to charities would have done better paying a living wage and not charging exorbitant prices for tied cottages and company shops. We may not be slaves but we are still definitely not freemen.

At Monte Casino the Polish Free Forces were charitable too. They had a load of food and no men, so battalions of French troops deserted to the PFF as they had men but no food. They then went on to help the 8th Army whoop Rommel. It wasn't only Jews and Gypsies that died in the death camps. So with no family and no food in Poland after the burnt-earth policies, it was a no-brainer when they were invited to stay and rebuild the western european economies.

With usury changing form from lending money for interest, to lending money and charging for the servicing of the risk, you will probably find that the majority of the shareholders of financial institutions have no guilt on how the profit is made, whatever their religion - Mrs Thatcher's legacy - may the best dog win.

Usury was always frowned on, and until relatively recently Christians were not allowed to lend money for a living. Sharia lending also works against the lending of money for profit. As Jews were able to act as financial intermediaries and bankers and oiled the wheels of society, there are many tales of usurers (Fagin, Shylock), and it has been a cause for anti-semitism. Nowadays we just hate DCAs.

Credit card lending remains steady but no longer booming. Unsecured lending is on trust/guilt/faith/hope, but definitely not on charity. Plastic money has become a commodity. Margins are high but trading is faceless and virtual. So it is acceptable and not seen as usury, and there is no longer any religious or geographical impediment.

In summary, as there is no moral, patriotic or religious string to pluck, and DCAs do not have a heart, we have to rely on law to offer some protection. Let's hope we get it.

[Never-In-Doubt]

Re: A DCA Writes

Guys, can we please stay on topic!

Thanks