As promised, a belated update. I heard from the Financial Ombudsman Service today and received £200 for my trouble. NatWest did offer to open a full current account for me, but I decided against it, given the circumstances!

Debt purchasers, in the main, rely on people not knowing their rights. They will also use unscrupulous methods, such as writing to a group of individuals with a similar name to the alleged debtor, or even addressing letters to the "Occupier." Hopefully, as more people use sites such as CAG, such intimidatory tactics will have a reduced effect.

CAGgers may interested in the latest approach taken by CFO payday loans. The post below shows that they are: Offering to reduce the amount owed to the original amount borrowed. A cynic would suggest that they will then sell the remainder to a third party. Offering a further advance of up to £200, which is, surely, contrary to OFT guidelines, by encouraging an alleged debtor to borrow more. The objective is, of course, to obtain the person's debit card details and empty his/her bank account. BE WARY. Get back on track with CFO Resolve… Apply for CFO Resolve and get a weight off your mind and up to £200 in your account today! Call our friendly Resolve team on 0208XXXXXXX Dear Mug, In an effort to get your loan out of default with CFO Lending we would like to offer you our CFO Resolve product. By taking advantage of this offer we will: 1) Remove all fines and interest currently on your account. We take your current outstanding balance, including all late interest charges £XXXX and reduce it to the original £XXXX that you initially borrowed! 2) Offer you more money. We have an available £50.00 that we can transfer to your account today! 3) Set your due date for you next payday. We will set the repayment date for your next payday where you can clear the new balance in full or defer if you choose too. 4) Get your account out of default with CRA’s We will advise the Credit Reference Agencies that we work with, that you have resolved your account, which may make applying for credit in the future easier! The Resolve team has been specifically set up to help you get out of debt by reducing your balance. By completing a resolve loan you will also be eligible for further finance product (sic) from CFO Lending in the future.

OP. Please note that only a Court may order you to provide any form of income and expenditure breakdown. Do not pay these leeches anything at all. Google the return address of an letter received, prior to opening the envelope, and if it is sent by a DCA or payday loan shark, simply write "Return to Sender" and place it in the nearest post box (no stamp required). Such organisations are unworthy of your attention. In the unlikely event of your being taken to Court, there are many useful posts upon CAG which you may find extremely helpful.

Further to previous postings, Bellshill (Strathclyde Business Park), appears to be used by a number of debt collection companies. If receiving a dubious letter, simply Google the return address and if it appears to be that of a DCA, simply write "Return to Sender" on the envelope and place it in the nearest postbox (no stamp required). Such maggots are unworthy of any further attention. An excellent post on YouTube, which is very supportive of the CAG, may be found at http://www.youtube.com/watch?v=cqy8GndzJbk

DCAs have no more power than your neighbour's cat to threaten you. Always report them to the Office of Fair Trading and do not pay them a penny. As for Wronga and other such loan sharks, their very existence is an affront to natural justice. In the highly unlikely event of such a company issuing legal proceedings, it would be very interesting to see what a district judge makes of their exorbitant, some would say, exploitative, interest rates.

I also read that Wronga are seeking to assign (i.e. sell) their outstanding debts to a DCA. If this is the case, and CAGgers receive letters from such DCAs, please search the forums accordingly to realise that DCAs have no power whatsoever.

Please note that CapQuest seem to be using a different return address on the reverse of their envelopes. This is CDR, PO Box 550, Manchester M5 0EE. It is worth looking out for this, in case you wish to return a letter to sender without opening.it.

Could you please post details of the claim, omitting the reference number, your name and address and any other identifying details.

Ricky, I recommend that you write to the original creditor, send the letter via Recorded Delivery and type your signature, don't sign it. Templates are available in the letters library. You should state that you are happy to settle the account (insert the amount that you are happy to pay). Also mention that you are not prepared to deal with the DCA. State that, due to your circumstances, you are able to afford only a monthly payment of (insert amount). Do not send any payment at this stage. Well done for recording the conversation where you informed them of the OFT guidelines, however, in future, NEVER SPEAK TO A CREDITOR OR DCA BY TELEPHONE, as they will twist everything you say and simply deny anything they wish. Let me know how this goes on. I am happy to help with the wording of the letter if required. Kind regards,

http://www.independent.co.uk/money/loans-credit/victory-for-campaigners-as-ripoff-lenders-face-instant-closure-8223242.html One hope that the Office of Fair Trading will show a robust approach to the illegal business practices shown by certain payday lenders. I am sure that many CAGgers will have a great deal of information to send to the OFT in Spring.

Thanks DonkeyB.

MKPD (Milton Keynes Debt Purchase) and MKRR (Milton Keynes Rapid Recoveries) are part of Compello Operations Limited. Their registered offfice is at: Fleming House, Seebeck Place, Knowlhill, Milton Keynes, MK5 8FR. Company Reg No: 04746414 CCL No: 632091 The blurb on their website http://mkdp.co.uk/ is priceless. "We aim to show our clients that there is always a light at the end of the tunnel, no matter what, and by working with us to tackle it face on they will be able resolve the situation and get back to enjoying the more important things in life."

Hi DonkeyB It would seem that there has been a change of tactics. Rock N Roll posted on this forum in January 2008 at Barclaycard/Mercers insider info - probably valid for other DCAs The gist of what he/she said is that Barclaycard rarely assign debts or commence legal proceedings. I wonder whether they are attempting to move bad debts off their books by the end of the financial year in April. MKDP/MKRR seem, as you say, highly dubious. Would be very interesting to find out what other CAGgers find out about this outfit.

Thanks again.