A couple of debt help tips

jason.lawrie · 17 February 2005 at 12:27AM

New to this site so apologies if posted on here before - working for a debt collection company I picked up a couple of tips others can use to help with their debts.

Firstly on catalogue debts remember if you ever signed a copy of the Consumer Credit Act. Most catalogues fall down on this - when you open an account they send you a leaflet or form to fill in and sign to accept the credit agreements - their downfall is that many dont make checks to make sure they come back. I successfully cleared 2 of my debts with catalogues when I requested from them a copy of my signed CCA (I knew I hadnt signed one) - a letter from their legal team said with 'reluctance' they agreed to write off the debt.

Also when dealing with external debt collection companies when they are given the work they are told how much they are allowed to go up to with automatic settlements. This ranges from 20-50%. Normally they would settle a debt for 20% discount without batting an eyelid - so if you are in a position to settle never pay the balance oustanding.

And the biggest tip of all - end the harrassing calls at work or home - simply tell the people on the phone that under the new consumer guidelines you request all dealings to be done by post and not to call anymore - they have to act on this or their license is at threat. That way you have a record of what is said.

Owl99_2 · 18 February 2005 at 2:11PM

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loobyloo1980 · 18 February 2005 at 7:02PM

jason.lawrie wrote:

Also when dealing with external debt collection companies when they are given the work they are told how much they are allowed to go up to with automatic settlements. This ranges from 20-50%. Normally they would settle a debt for 20% discount without batting an eyelid - so if you are in a position to settle never pay the balance oustanding.

Hiya, this sounds interesting and useful. How do you go about finding out what they would accept? Do you write to them and ask what lump sum payment they would accept to settle? This would help me loads and loads!!!

Berniesgirl · 19 February 2005 at 6:20PM

Thabks so much,Jason. To have this from someone who used to work for these companies is really useful and a big help. Everything on this forum lowers my anxiety level but your posting is the best of all.
Cheers!
Berniesgirl :rolleyes:

zzzLazyDaisy · 19 February 2005 at 6:33PM

This site has some good information about dealing with harassment by debt collectors

http://www.nationaldebtline.co.uk

Sofa_Sogood · 19 February 2005 at 6:42PM

jason.lawrie wrote:

Also when dealing with external debt collection companies when they are given the work they are told how much they are allowed to go up to with automatic settlements. This ranges from 20-50%. Normally they would settle a debt for 20% discount without batting an eyelid - so if you are in a position to settle never pay the balance oustanding.

Can you clarify whether this is just for catalogue debts jason?

I'm only asking because we've had to use debt collection companies in the past, and whilst we, or they, would never harass anyone for money, I'm not aware that they'd just settle for those discounts ad hoc.

Thanks.

Debt_Free_Chick · 20 February 2005 at 7:30AM

Can you clarify whether this is just for catalogue debts jason?

Many lenders will accept an offer - it's called a Full & Final Settlement Offer and is fully explained, with sample letters, here

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_24.php3

HTH

Sofa_Sogood · 20 February 2005 at 10:08AM

Thanks for that Debt_Free_Chick, I've been out of the loop for a while.

I thought it needed to be a bit more clearer, because whilst we tend to write things off in full, (unless it's a big company, or someone just trying it on), I didn't want people thinking that that might be the case with every company.

Whilst an offer of any money's better than none in our case, and harrassment in any shape or form is wrong, I thought jason made it sound a bit easier than it might actually be and didn't want people's hopes to be falsely raised.

Thanks again.

loobyloo1980 · 20 February 2005 at 8:05PM

Debt_Free_Chick wrote:

Many lenders will accept an offer - it's called a Full & Final Settlement Offer and is fully explained, with sample letters, here

http://www.nationaldebtline.co.uk/england_factsheets/factsheet_24.php3

HTH

Would you say that it is worth contacting creditors and asking how much they would accept or do you write and make an offer and see how it goes? This would be fab for us. If most would settle for 20% as jason suggested I would be debt free in no time.

jason.lawrie · 20 February 2005 at 11:42PM

Depends on how the company was meeting its KPI's and targets for the client. If money was short you would have to call people already on a payment plan and offer settlement straight off 20% if paid by debit/credit card (instant funds which would appear on report). Also would check who paid by credit card as possibility they would have spare credit to pay settlement. Some staff went for installments and some went straight for settlement. End of day the targets for collectors were huge - getting a settlement in racked up the money. Also incentives were placed for highest settlement - ie dvd players and gift vouchers. So in fairness yes, settlements were given out ad hoc - not just catalogue but mail order companies, banks and credit card comnpanies.

Debt_Free_Chick · 21 February 2005 at 9:16AM

If most would settle for 20% as jason suggested I would be debt free in no time.

Loobyloo ... it's a DISCOUNT of 20%, so you would need to offer 80% of the amount outstanding.

If you want to make an offer, I would suggest you start at 50% of the amount outstanding and see how the company responds.

However .... do you have a lump sum to enable you to do this? If so, why haven't you paid it off your debts anyway?

It looks good ... but you need to have a lump sum. And then, you need to pro-rata that lump sum so that all your creditors get something. Full details in the National Debtline site link

A couple of debt help tips

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