Acting agent or debt purchaser?

daveiron wrote:Its quite simple, In the 3 letters old and new . It very clearly states I will pay any obligation upon proof of claim.

So what is the problem ? supply the proof & get paid in full .Instead they choose to sell the debt for pennies in the pound. Why?

They do it for accounting purposes.

Why do banks write off bad debts?

A:
Banks prefer to never have to write off bad debt since their loan portfolios are their primary assets and source of future revenue. However, toxic loans, or loans that cannot be collected or are unreasonably difficult to collect, reflect very poorly on a bank's financial statements and can divert resources from more productive activity. Banks use write-offs, which are sometimes called "charge-offs," to remove loans from their balance sheets and reduce their overall tax liability.

Hypothetical Example
Banks never assume they will collect all of the loans they make. This is why the generally accepted accounting principles, or GAAP, require lending institutions to hold a reserve against expected future bad loans. This is otherwise known as the allowance for bad debts.

For example, a firm that makes £100,000 in loans might have an allowance for 5%, or £5,000, in bad debts. Once the loans are made, this £5,000 is immediately taken as an expense as the bank does not wait until an actual default occurs. The remaining £95,000 is recorded as net assets on the balance sheet.

If it turns out more borrowers default than expected, the bank writes off the receivables and takes the additional expense. If the aforementioned lender actually has £8,000 worth of loans default, it writes off the entire amount and takes an additional £3000 as an expense.

Consequences
When a nonperforming loan is written off, the lender receives a tax deduction from the loan value. Not only do banks get a deduction, but they are still allowed to pursue the debts and generate revenue from them.

Another common option is for banks to sell off bad debts to third-party collection agencies.

Read more: Why do banks write off bad debt? | Investopedia http://www.investopedia.com/ask/answers/070815/why-do-banks-write-bad-debt.asp#ixzz4v98c8Jtf
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Tiggy ,
you can dress it up all you want.
How difficult is it for them to produce the Original Agreement .IF THEY HAVE IT. They would then not have to write anything off.

Usually it's down to simple logistics.  How many credit cards / loans do you think are taken out each year, millions - how much paper do you think is generated 10,000 of tonnes, where do you imagine they would store it all ?  

They don't, to save money they digitalise, then destroy the original.

As much as you want to theorise about what they do with the original, do you honestly think that if they do securitised them that securitisation firms take and store 10's of 1000's of tonnes of original paper credit agreements!?  

There would be warehouses across this Country bulging, plus the fact why would they need the original, what benefit would it serve them?

The fact is the banking crash of 2007 was caused by toxic loans, now banks don't want them, it looks bad on their balance sheet and multi national investors won't invest in a bank that has a large bad debt portfolio, they want rid of them almost straight away.

Hi guys

Have you considered T.H.E.Y. only need keep ONE original document to keep you on the hook for all the other documents you sign?

The birth records aka BC....

Cheers!

Hi,
I received a response to my first letter from wescot.

I also have sent them a second letter.

HI indebttoo,

Thats a usual response I would continue on schedule with the letters .You are under no obligation to comply to their timescale.
If they used any sort of due diligence they would have, or could produce all requested in a very short time.

Hi daveiron,
Thanks for reply. Will send a third one in ten days time then.
Thank you to you all guys.

HI indedttoo

also dont contact them for any reason, only by the three letters, and like daveiron said this is a usual response

Hi

The banks should keep all paperwork for 6 year ,,,tax purposes.
About two years ago i needed some paperwork from my bank i had to wait 3 days for them to retrieve from the archives,
They may digitalise  some paperwork , but the people who work in the bank are intelligent , so there is no reason to receive paperwork you cannot read ,
and if there paperwork is digitalise it would only take a few minutes to produce true copies if they dont have the original ,also go to my post court the copy of the agreement is a photocopy , not a digital copy , so if the bank destroy the original and dont keep paperwork ,where did the photocopy come from ?

This is Indebttoo post , If you want to start a new post on banks please do so,

Hi everybody,
I received a response to my second letter from wescot.
They basically are saying that I am using a template letter freely available on the internet and it have no basis.....
A couple days ago I sent them third letter. I wonder what’s after fird letter?
Thanks.

Hi indebttoo

This is a normal response,
But no paperwork so far,

Hi petesomething,
Not yet

Hello everyone,

I haven't heard anything from wescot since October when I sent them letter 3. I haven't sent them estopppel yet, just about to do now.
I have two slightly different estoppel examples, the fee schedule differs. I am not sure which one shall I send them?
Thanks.

This One?

Or this?

They seem to be ignoring estoppels, If you send a fee schedule keep it realistic  There is one you could base it on in the new letters for debt purchasers. Its my understanding that in the past folk have tried to enforce those high schedules in court & got clobbered .

Thanks for reply daveiron.
If they ignore them, is it worth sending them one? Just wait what happens next, after the third letter?
What does it mean when the bank assigns all of its respective rights, title and interest to some Ltd company?
Does it mean that the debt was sold to them and they will be acting as a debt purchaser (not DCA)?

Up to you really ,I would let sleeping dogs lie.
Yes they sell them off for pence in the pound, Just wait until a debt purchaser contacts you.
Would it not have been simple to have simply supplied you with the docs you requested ?

It seems like fishing on people knowledge
I have received a letter from Moorcroft saying that my details have been passed to them and they will be dealing with my account. Also, have received a notice of assignment.
Should I use letters for debt purchasers? Just want to make sure that I send the correct letters

If they are saying that its been assigned to them ,use the letters for debt purchasers .

Ok, thanks for the advice.

I am a bit confused.
Barclays in the letter stated that account was assigned and transferred to Hoist Portfolio Holdings Limited.
Moorcroft in the letter stated that account details have been passed to them by HPH to act as a collection agent.
Does it mean that Moorcroft acts as DCA on behalf of alleged debt purchaser HPH and DCA letters should be sent to them? Thanks.

Yes respond with the letters in whatever capacity they are acting under ;ie Collectors =DCA letters
Purchasers =Debt Purchasers letters.

Thanks for clearing the fog again!
Will let the forum know when I receive a response from them.