Buying someone else's debt..!!

[BoredBloke]

I worked with a guy and his brother used to buy debts from banks. He used to buy a printout with loads of names and address and details on it. He'd then go through it and chase up all those over £5k and send them a nasty letter. Then money would start to arrive through the post as often it was so long ago when the debt was incurred and the default made, that the person concerned had forgotten about it and their circumstances had changed. The initial bad debt list was expensive though.

[Sockpuppet]

The thing is you dont actually "buy" the debt. You are saying ... "ok there is a debt for £100. Instruct us to act and recover it and we will give you £75 back and pocket the rest".

I dont think there is a law saying they have to negotiate. If you have the debt they are entitled to claim it and only a court can force them to accept payment terms (i.e. £10 a week).

[Paddy]

I am not sure of the legalities of this. I know some debt collectors do this but even so I have a feeling that it maybe a grey area particularly if there is a dispute over the dept.

I had a dispute with Lloyds Bank, the bank refused to negotiate and passed the alleged debt onto their recovery department. That department was disguised as a firm of solicitors but was in fact another department in Lloyds (same building) employing one solicitor and loads of clerks. The recovery department refused to negotiate saying that they only take instructions from the Bank. So I said sue me. Instead they soled the alleged debt on to a collection company. They wrote and said pay up or go to court and by the way we do not negotiate; so I said fine I will show the judge the letter that says we do not negotiate. They promptly dropped the claim.

I wrote back and said I reserve the right to claim my losses from them and they replied that they had given the debt back to Lloyds.

[Sockpuppet]

Was thinking of buying a friends debt from a finance company to help him out (if the price is right) - anyone know if I can claim any kind of any tax relief if I do so, either on a personal or corporate level?

Not sure what kind of offer I should be making, was thinking of 50p in the pound - anyone have any experience of this and what kind of percentage ball park figure I should be making the offer on?

Thanks

You'll never get 50p in the pound unless the debt is really large and there is no chance in hell of him ever repaying it.

Baliffs usually get 75-85p/pound if they buy the debt so 50p in the pound is asking.

[Ardesco]

Why should you get tax relief for buying sombody elses debt?

If things worked that way all debt would be bought and sold round families for the tax relief. Such a system would be open to increadible abuse.

Can I have some of what you are smoking

Oh and Lucifer Box is correct never mix freindship with business and never go into business with your freinds!!!

[Lucifer Box]

Never mix friendship and business. It will all end in tears.

[BankingContractor]

Was thinking of buying a friends debt from a finance company to help him out (if the price is right) - anyone know if I can claim any kind of any tax relief if I do so, either on a personal or corporate level?

Not sure what kind of offer I should be making, was thinking of 50p in the pound - anyone have any experience of this and what kind of percentage ball park figure I should be making the offer on?

Thanks