Debt collection industry faces "perfect storm"

[rockwell304]

A very coherent, balanced and positive approach to the problem by sequenci. However, I can also understand Fred's position on this. Most of us are programmed to respond politely to initial contact, either by phone or someone approaching you in the street. However, if you have been subjected to continual harassment and abuse by DCA's then frankly you should deal with it in any way that suits your general demeanor.

 

In my case I have been receiving numerous threat letters, texts and silent calls from mobile numbers traced back to Lowell on a Morgan Stanley Barclaycard. On the 5th call in 20 minutes yesterday morning someone finally spoke asking for me. I asked if they were from the useless bunch of imbeciles making continual silent calls. Answer: we might be! we need to go through security. I said let me ask my own security question first, what is the combined IQ of all the threat monkeys in your office? to make it easier for you the answer is between 1 - 9. They terminated the call and so far no further calls. Childish I know but a satisfactory outcome.

 

I much prefer caledfwlch's approach, despite the time spent watching rugby matches on Welsh Channel S4C I'm not quite ready to communicate in writing, although I do know what offside is!

[unclebulgaria67]

I suspect the DCA staff that make the phone calls are on commission, so if they can't get through the security questions, they will terminate the call and move onto the next one. The other issue that they probably have is facing the sack if they fail to meet certain performance criteria. In most contact centres the staff will have numerous targets that they have to achieve. Some of these companies will operate a revolving door type policy, having a regular turnover of staff, every 6 months.

 

So while I don't feel too sorry for the DCA companies themselves, some of the staff that work for them, probably share some of the same feelings as people who post on CAG. It would certainly not be a job I would want to do. Just think of having to commute to work, then having to sit down for 8 hours trying to make phone calls to people who don't want to talk to you.

[ScarletPimpernel]

I also understand entirely why people are tempted to see all DCAs as 'bad apples', and the responsibility for that perception lies squarely at the door of the debt industry. However, for every drone you shoot down on the telephone, there are 10 more; these are small wins, that have little overall effect. That is why we must not shrink from engaging the upper echelons of the industry, because they are the people who can initiate change.

 

Phone drones are almost always on commission, and have to meet targets; it is one of the worst aspects of the industry, because it encourages poorly-trained and poorly-paid staff to breach compliance. As has been suggested above, it's a no-skills, high-turnover job. In fact, I think that it's quite exploitative, except that no-one is forced to work for a DCA.

 

The biggest problem is that industry standard is a 'one size fits all' approach, and they start off with the mistaken view that everyone is a 'won't pay' rather than a 'can't pay'. It's all about quick money; the balance at the end of the month. None of them seem to be capable of taking a long view. That might be a symptom of the way in which DCAs are increasingly controlled by offshore investment groups. In any case, perhaps that is something that regulators ought to be looking at.

[Old Cogger]

I also understand entirely why people are tempted to see all DCAs as 'bad apples', and the responsibility for that perception lies squarely at the door of the debt industry. However, for every drone you shoot down on the telephone, there are 10 more; these are small wins, that have little overall effect. That is why we must not shrink from engaging the upper echelons of the industry, because they are the people who can initiate change.

 

Phone drones are almost always on commission, and have to meet targets; it is one of the worst aspects of the industry, because it encourages poorly-trained and poorly-paid staff to breach compliance. As has been suggested above, it's a no-skills, high-turnover job. In fact, I think that it's quite exploitative, except that no-one is forced to work for a DCA.

 

The biggest problem is that industry standard is a 'one size fits all' approach, and they start off with the mistaken view that everyone is a 'won't pay' rather than a 'can't pay'. It's all about quick money; the balance at the end of the month. None of them seem to be capable of taking a long view. That might be a symptom of the way in which DCAs are increasingly controlled by offshore investment groups. In any case, perhaps that is something that regulators ought to be looking at.

 

Just goes to show how the Governments of this country allow speculators to fleece u.k. citizens etc.

[citizenB]

I find it very frustrating to see pretty much the same issues day in day out.. however :-

 

Site team constantly remind members to follow through with complaints to the regulators - the more well constructed complaints they see coming through to them, will eventually force them to act.

 

Despite almost begging people to keep everything in writing in order to compile a paper trail that will almost certainly be useful at a later date - we still members pick up the phone, even if they cant record the conversation. Or we see other members saying - "shred or bin" the letter. What purpose does that serve? When later making a complaint or standing up in court - you have no proof that the letters were bordering on the criminal!

 

You only have to read the account of Keith Harrison v Link (MBNA) - he kept everything, even the envelopes - he engaged with Link in writing - he detailed every call, both answered and silent. He made complaints to the OFT, FOS and ICO - in the end he took out his own injuction in order to stop them. It was a long journey for him - he was successful.

 

If you are having the same kind of issues with a DCA, you should remind them that there are Judges who will see their actions as unacceptable.

 

There is no point in threatening actions you have no intention of following through.

 

Be careful what you say if you DO telephone a DCA - they too record calls (when it suits them) they will only lose the recordings of conversations that were conducted with politeness in response to their aggressive behaviour.

 

We have set up no end of petitions which very few people respond to.

 

Discussion threads have had to be closed because they have descended into chaos where someone believes he who shouts the loudest is right. Or there are personal attacks being made.

 

You can play them at their own game, but it does not mean that you have to sink to their levels.

[sillygirl1]

I find when dealing with DCAs that they dont want anything other than 'payment in full' so I am wondering if they are on a higher commission if this was the case.

 

I think two things would help this so called 'industry'

 

1. Ban the selling of debts completely

2. Scrap judgement by default - if neither side submits a defence the case is dismissed without leave t appeal, many cmpanies, especially banks so it seems, use this to get round a 'difficult delinquent debtor'.

[stormski]

I find when dealing with DCAs that they dont want anything other than 'payment in full' so I am wondering if they are on a higher commission if this was the case.

 

I think two things would help this so called 'industry'

 

1. Ban the selling of debts completely

2. Scrap judgement by default - if neither side submits a defence the case is dismissed without leave t appeal, many cmpanies, especially banks so it seems, use this to get round a 'difficult delinquent debtor'.

 

Greetings,

 

This seems to be the main problem....Banks claim tax relief for the 'full debt' after inflating it as much as possible...and simply don't care about the circumstances of the debtor.

 

They then sell it on which means someone else hounds you to pay a debt that has already been claimed for tax relief....

 

Banks should keep their debts...and actually converse with the debtor to a satisfactory conclusion..

 

Regarding DCA's....they shouldn't exist at all..just another arm of a very corrupt industry.

 

The whole way things work needs reforming...selling of debts should not be allowed. Especially if they have already claimed it back off tax...Once they claim tax relief...the debt is wiped.

 

And the credit reference agencies aren't much better either. Now mainly used to 'punish' people who are usually in a bad position already.

 

Regards,

Stormski

[sequenci]

. Scrap judgement by default - if neither side submits a defence the case is dismissed without leave t appeal, many cmpanies, especially banks so it seems, use this to get round a 'difficult delinquent debtor'.

 

Fun idea albeit a little pie in the sky don't you think? It's hardly an 'industry' issue, more judicial.

[unclebulgaria67]

The downfall of the debt industry will come when they are properly investigated in regard to accounting standards, tax handling and compliance with various laws including money laundering.

 

As we found with the banking industry, few people would have thought they had problems before the financial crash in autumn 2007. There was a recent programme, where Alasdair Darling was recalling a phone call he had from RBS, that they were within hours of going bust. RBS was the biggest bank in the world at the time. Now look at RBS, where they have share price of 20p.