I'm In Debt But Got Offered a Loan From a DCA!!!!

[katpuss]

Hi guys,

 

Have a debt with Simply Be, fell into arrears with payments so I was transferred to Reliable Collections (in house DCA I think).

 

Anyway wasn't able to keep up further payments even though I paid the £20 per month that they wanted.

 

They then asked if I wanted to consolidate my debts with a loan which would also leave me with some spare money!

 

I told them that I was on a DMP with the CCCS (paying considerable less per month than a loan would cost) and they still tried to get me to take a loan!

 

I'm already deep in debt and don't want to get into any more!

 

How can Reliable act like this and is it legal? I've never come across anything like this before!

 

Thanks

Katpuss

[Huff&Puff]

It is completely contrary to the OFT guidance. Unfortunately I doubt if it is actually illegal though. Definitely report them to Trading Standards and the OFT.

[Huff&Puff]

Forgot the link:

 

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

[pompeyfaith]

Did you ask for that offer in writing as it maybe useful and no that is bad advice and goes against what the OFT say

 

PF

[cerberusalert]

Make a complaint to your local trading standards & the OFT, they are in clear breach of OFT guidelines.

 

Consumer Direct - Contact us

 

OFT Complaint form

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/DebtCollectionComplaintForm.DOC

 

The Office of Fair Trading: Contact us

 

debtcollectionguidance@oft.gsi.gov.uk

 

 

tel: 020 7211 5823

 

The Office of Fair Trading: Debt collection practices

 

http://oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

[the_shadow]

I'm assuming you have not CCA'd simply be / reliable collections at all? If this is not a recent account then chances are they'll be nothing enforceable and hence you taking out a nice new loan with them will give them a nice enforceable debt

 

One that they CAN take to court in the future to attempt to squeeze even more out of you.

 

I'm also guessing they mentioned this in a telephone convo and not in writing as its already been pointed out that it goes against OFT guidelines on debt collection.

 

S.

[pompeyfaith]

Shadow,

 

I totally agree hence why I asked if they asked the DCA for the offer in writing.

 

PF