📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Credit Card settlement discounts

Options
12467

Comments

  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    Ivor_Nowt_09 wrote: »
    This is now been going on with TSB since June 17th where my initial offer £6075 and subsequent offers until now have all be rejected. Where we are today is that they have accepted an offer of £8606.
    I agree I certainly don't want to simply pay the £8k and still can't get credit for six years hence my initial post.

    My concern is that If I now go back with a lower offer I am back to square one. If I can get them to agree to the conditions then happy days ..

    Are you saying to go back with offer of £5k and alow them to update my credit record as "partially settled" for 6 years, thus having no credit in this time but saving myself almost £7K ????????


    Hiya

    Ok, makes sense. Ok, what i'm saying i'd do (lets make it clear this is what I would do) is to tell them that they can accept £5k with removal of default as part of same deal or they can get stuffed and try and pursue me through the courts.

    They can only add a default, at worse a CCJ, in either case you simply refuse to pay.

    My logic is that if i'm screwed for 6 yrs then I may as well be screwed for £12k as opposed to £5k. So what that means is in my view, if they accept £8k offer and want to leave default for 6yrs, you're losing out both £8k and a default. Assume you refuse to pay, you're £8k better off and still have the default.

    However, if you're happy to spend £8k with default removal an option then sure send your letter above.

    I'd be telling them to swivel for it myself, but that is your call to make.
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • Ivor_Nowt_09
    Ivor_Nowt_09 Posts: 18 Forumite
    edited 26 August 2009 at 1:00PM
    never-in-doubt wrote: »
    Hiya


    However, if you're happy to spend £8k with default removal an option then sure send your letter above.




    So, if they accept the £8k and remove the 'default' then I am in the clear and able to get future credit (within the next 6 years?)
    Is this correct???? :confused:
    Total Debt: Aprox £23,500 (Barclays, Lloyds TSB, Natwest Credit cards)
    Orig managed by DFH now in process of Full & Final settlements with all creditors - wish me luck ! :confused:
  • dane-katie
    dane-katie Posts: 961 Forumite
    SomeGeezer wrote: »
    Ivor, 10 years ago I owed about 25k in loans and credit cards. I sold my house and had some spare cash. I called all the creditors after they had been chasing me for months and months (and with me largely ignoring them) to give them a really bad sob story (lost my job had to sell my house etc - which was true) but I did have some money and would they be prepared to settle the debt if I paid them £X amount. In summary most of them, after speaking with a manager, took roughly half of what I owed them. About 12.5k in total. Bonus!

    Remember: After speaking with them make sure you get a letter from them on headed paper confirming their acceptance of your offer before you pay them. Then all youhave to do is spend the next 3 months chasing them to make sure they update the credit agencies of the settlement.

    I could have so easily declared myself bankrupt and kept the proceeds of the sale of my house all for myself. But you know what? I am so glad I settled the debts. I got myself in that mess and I had to pay them back myself rather than taking the easy option.

    Good luck mate.

    How is bankruptcy the easy option???

    PLUS if you had gone bankrupt the money from your sale of your house wouldnt not have been yours to keep, it would have been the OR's to pay there expenses and then distributed between your creditors.

    Unless you have faced bankruptcy or been bankrupt dont make assumptions that it is easy it far from it!

    Please get your facts right before posting assumptions.
    Is a Bipolar bear :p
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    Ivor_Nowt_09 wrote: »
    So, if they accept the £8k and remove the 'default' then I am in the clear and able to get future credit (within the next 6 years?)
    Is this correct???? :confused:

    Yes, exactly correct. But them saying we will mark it settled means the same as an unsettled default, i.e. it is a nightmare so you need them to do what you said in the letter and remove all trace of the default to show green 0's as though it was paid correctly.

    As I say, for £8k i'd expect them to bite your hands off - maybe a more threatening letter about going bankrupt if they refuse may work...... whatever, you should never pay that amount of cash without having default removal as part of the deal......
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • CannyJock
    CannyJock Posts: 3,838 Forumite
    1,000 Posts Combo Breaker
    Ivor_Nowt_09 wrote: »
    So, if they accept the £8k and remove the 'default' then I am in the clear and able to get future credit (within the next 6 years?)
    Is this correct???? :confused:

    If they agree to it yes. Letter looks good to me. Renegotiating a deal can be awkward, but would agree in this instance that a black mark on your credit report for 6 years at £5k or £12k won't make a big difference - you'll be equally screwed either way.

    Writing back to them, mentioning that you now "taken further advice" can imply you've spoke to a legal person and would be a justifiable reason to go back and place further conditions on making the £8k payment.
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • CannyJock
    CannyJock Posts: 3,838 Forumite
    1,000 Posts Combo Breaker
    dane-katie wrote: »
    How is bankruptcy the easy option???

    PLUS if you had gone bankrupt the money from your sale of your house wouldnt not have been yours to keep, it would have been the OR's to pay there expenses and then distributed between your creditors.

    Unless you have faced bankruptcy or been bankrupt dont make assumptions that it is easy it far from it!

    Please get your facts right before posting assumptions.

    Don't think they were actually advocating bankruptcy, just mentioning it in passing, but I get your point that bankruptcy and IVA's are not the easy option the nice soothing daytime tv adverts make it sound :)
    "A child of five could understand this. Fetch me a child of five." - Groucho Marx
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    dane-katie wrote: »
    How is bankruptcy the easy option???

    PLUS if you had gone bankrupt the money from your sale of your house wouldnt not have been yours to keep, it would have been the OR's to pay there expenses and then distributed between your creditors.

    Unless you have faced bankruptcy or been bankrupt dont make assumptions that it is easy it far from it!

    Please get your facts right before posting assumptions.

    You're having a go at someone with 16 posts, about a post of 2 months ago lol - chill dude :D

    Also the guy obviously doesn't have a clue - we all know if he'd just sold his house then went B/R he'd be investigated and similarly, if he done the opposite the funds would be paid to the creditors!

    I smell BS - anyone, anyone....? :rotfl::rotfl:
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    Try sending this version of letter - see how you get on!

    remember to spell check it, cos I do type too fast for my own good lol...... that's what i'd be sending to them anyway - up to you what you send?

    Good Luck!


    Dear Sirs,

    Re: XXXXXXXX

    I write with reference to your letter dated XX/XX/2009, regards to a full and final settlement figure of the above numbered account.

    You have agreed to accept the sum of £8,606.00 in settlement of the account, however you refuse to remove the default.

    As a result of this, I have now sought legal advice and wish to revoke my original offer and revert back to a reasonable offer of £5,000 in full and final settlement of the account plus full default removal. Failure to accept this offer will result in non payment and my seeking advice regards to bankruptcy.

    I have managed to obtain £5,000 which is a lot in comparison assuming you sold the debt to a third party, a view that is likely to be shared by any judge should I decide to declare myself bankrupt.

    I am not prepared to enter negotiations, either you can accept my offer or you decline it and I cease to negotiate further, quite simply.

    To reiterate, I am more than happy to make an immediate payment of £5,000.00 as full and final settlement of the account in exchange for total account closure with your agreement and, subsequently ensuring, that the following actions will be carried out;
    • The Default Notice will be removed
    • The Status of the account will change from “Defaulted” to “Settled”
    • The Current Balance will appear as £0.00
    • The Default Balance will be set to £0.00
    • There will be no date in the “Defaulted Date” field (as it will be removed)
    • There will be no date in the “Date Last Delinquent” field on the report
    This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit.

    Written confirmation on headed paper confirming the above will result in my sending cheque for £5,000.00 in full and final payment of the account, by return.

    I look forward to your response, within the next 14 days.

    Yours faithfully,


    Ivor Nowt 09
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
  • Ivor_Nowt_09
    Ivor_Nowt_09 Posts: 18 Forumite
    CannyJock wrote: »
    Writing back to them, mentioning that you now "taken further advice" can imply you've spoke to a legal person and would be a justifiable reason to go back and place further conditions on making the £8k payment.

    Hiya,

    In my first letter to TSB I stated this ..

    "I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full."

    So the way I see it is that I am not placing any further conditions on my offer, this condition has already been there.

    I have adjusted my letter (as prev post) to include this...

    "Your letter states that as long as the payment is made within 28days my credit record will be updated to show the debt as partially settled for 6 years. However, as per my previous correspondence part of any offer(s) I have made in relation to a Full and Final Settlement results in my credit record being updated as ‘settled in full’ (per my letter dated 17th June).



    I am more than happy to make an immediate payment of £8686.00 as full and final settlement of the account in exchange for total account closure with your agreement and, subsequently ensuring, that the following actions will be carried out;
    • The Default Notice will be removed
    • The Status of the account will change from “Defaulted” to “Settled”
    • The Current Balance will appear as £0.00
    • The Default Balance will be set to £0.00
    • There will be no date in the “Defaulted Date” field (as it will be removed)
    • There will be no date in the “Date Last Delinquent” field on the report
    etc etc ..."

    So I guess I have two options really....

    1) send my letter and if they agree I pay and they remove the default
    2) send the letter and they fail to agree I still pay and get stuck with the default notice for 6 years..


    ummmmmmmmmmmm :mad:
    Total Debt: Aprox £23,500 (Barclays, Lloyds TSB, Natwest Credit cards)
    Orig managed by DFH now in process of Full & Final settlements with all creditors - wish me luck ! :confused:
  • never-in-doubt
    never-in-doubt Posts: 20,613 Forumite
    edited 26 August 2009 at 2:51PM
    They will not just remove it - guaranteed. Also you're offering way too much. The condition you asked for pretty much says to them 'satisfied in full' - satisfied means you satisfied a defaulted account meaning that you are screwed for 6yrs!

    Follow me? Try sending the letter above, see how you get on.

    Option 3. Send my version of letter, offer £5k and when they refuse come back and we'll help you compose more letters but ideally you want them to sell it to a DCA for like 14p in the £ at which point £5k to the DCA is a lot and they will agree to remove default for a £5k sum - that is pretty guaranteed.
    :o 2010 - year of the troll :o

    Niddy - Over & Out :wave:
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture