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    • M1BDK
    • By M1BDK 30th Sep 16, 9:38 PM
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    M1BDK
    DMP Full & Final Settlement Advice
    • #1
    • 30th Sep 16, 9:38 PM
    DMP Full & Final Settlement Advice 30th Sep 16 at 9:38 PM
    Hi Everyone

    Can anyone offer advice on negotiating F&F settlements on a DMP?

    Situation is:
    - DMP is 6 years old. 6 debts, current balance £40K and paying £200 per month in total for the entire 6 years. Will take another 20 or so years at this rate.
    - Was being managed by a company who charged a fee but they have just stopped managing DMP's so currently switching to PayPlan.
    - Family will gift me a maximum of £20K if I can negotiate F&F will ALL 6 creditors. This will only happen if I can manage to get them all sorted.

    Questions I really need some advice on:
    - Payplan are telling me I won't get the best deal if they negotiate for me, and I should do it myself. My concern is coordinating all 6 simultaneously. With the previous debt management company they would have taken the strain and done it for me. Is it true in experts opinions that I will be better off doing this myself and directly?
    - I am really not clear if the 6 debts have been sold on, or are being managed only by DCA's and still owned by the original creditor. Can I negotiate with either or is one or other better?
    - 1 debt with Cabot, 1 with PRA, 2 with NCO/Arrow, 2 with Wescot. However when I check my Experian / Noddle files Wescot don't show but Sainsburys and Barclaycard do - hence I believe these are the 2 which Wescot are managing. I read bad things about Wescot so perhaps so go to Sainsburys and Barclaycard Direct?
    - Or, finally, do I approach another fee charging debt management company to negotiate and coordinate the whole lot?

    Thanks so much in advance for any advice or expertise.
Page 1
    • sourcrates
    • By sourcrates 30th Sep 16, 10:09 PM
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    sourcrates
    • #2
    • 30th Sep 16, 10:09 PM
    • #2
    • 30th Sep 16, 10:09 PM
    Hi,

    I would say you have a job on your hands getting creditors to settle for half what there owed, however t's not an impossible task.

    Yes you should do this yourself, you mention the previous DMP company would of negotiated on your behalf, they would also of taken a sizeable chunk of cash for the privilege of doing so, you are well shot of them beleive me, do not even entertain the thought of engaging another one to rob you even more.

    The debts that have been sold on you should have little trouble getting settlements on, it's the managed debts that may be a tad inflexible.

    But it's a simple task to write a letter, use the National Debtline template letter for this purpose, write to whoever owns each debt, it would also be wise to make CCA requests to each relevant account first to determine enforceability.

    Link here :

    https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • M1BDK
    • By M1BDK 30th Sep 16, 10:39 PM
    • 7 Posts
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    M1BDK
    • #3
    • 30th Sep 16, 10:39 PM
    • #3
    • 30th Sep 16, 10:39 PM
    Thank you. I agree 50% may be pushing it, I really have no idea what's realistic and read such varying amounts on other posts and forums. Has to be worth a try though.
    So good advice and sounds like I need to bite the bullett and start writing letters.
    Interestingly pay plan told me not to offer an amount but to ask for one from each creditor, to see what their opening gambit is. I'm not sure I see much point in this or if they would even reply.

    On the CCA requests, once I get copies what exactly am I looking for please?

    Many thanks again
    • sourcrates
    • By sourcrates 30th Sep 16, 10:44 PM
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    sourcrates
    • #4
    • 30th Sep 16, 10:44 PM
    • #4
    • 30th Sep 16, 10:44 PM
    Complicated question, do any of your debts date from before 2007 ?

    If not, maybe bypass that step and go straight in with the offers.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • M1BDK
    • By M1BDK 30th Sep 16, 10:47 PM
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    M1BDK
    • #5
    • 30th Sep 16, 10:47 PM
    • #5
    • 30th Sep 16, 10:47 PM
    Yes, most were probably pre 2007 but can't be 100% sure. Sorry for all the questions, I just wasn't sure what you meant by checking they are enforceable.
    • sourcrates
    • By sourcrates 30th Sep 16, 11:02 PM
    • 8,315 Posts
    • 8,140 Thanks
    sourcrates
    • #6
    • 30th Sep 16, 11:02 PM
    • #6
    • 30th Sep 16, 11:02 PM
    Yes, most were probably pre 2007 but can't be 100% sure. Sorry for all the questions, I just wasn't sure what you meant by checking they are enforceable.
    Originally posted by M1BDK
    Ok, well then I would do CCA requests first then.

    This may help you on two levels :

    (1) If for any reason they can't supply a copy of an agreement, at all, then the account cannot be enforced through the courts.

    (2) Pre April 2007 agreements MUST include what's known as the "prescribed terms", the basic rules of how the account was operated, for example, it must include the credit limit, the interest rate applicable, how and when to make payment, how much to pay etc etc.

    If it dosent include this information, again, it cannot be enforced through the courts.

    This section was removed after this date.

    A reconstituted agreement can be produced no matter when your agreement dates from, however the above still applies to pre April 2007 agreements, there is no requirement for a signature on any agreement.

    I think it's worth doing before parting with any money.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • M1BDK
    • By M1BDK 14th Oct 16, 11:58 PM
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    M1BDK
    • #7
    • 14th Oct 16, 11:58 PM
    • #7
    • 14th Oct 16, 11:58 PM
    Quick update for anyone interested. Made offers at 30% on all 6 debts to 4 companies (2 each own 2 debts).
    After phone negotiation with one, settled at 52% with the usual terms as suggested in the national debt helpline template. This was a debt which had been sold on.
    Of the other 5, 3 have been sold on and 2 are with the original company but being managed by third parties.
    The 3 sold on have all come back offering settlement at 80%, so we're miles apart. My plan is to leave it a few weeks and go back at either 40% or maybe my final max of 50%, but I'm not hopeful.
    The 2 being managed by a third party have responded saying they can't accept on behalf of, but will send the offers on for consideration.
    Any advice out there on best approach to this negotiation, is my proposal of a 2-3 stage incremental increase the right approach? I know there's no exact science or rules here but any view or experience would be interesting. Thanks
    Last edited by M1BDK; 15-10-2016 at 12:02 AM.
    • DrWatson1
    • By DrWatson1 15th Oct 16, 7:13 AM
    • 49 Posts
    • 29 Thanks
    DrWatson1
    • #8
    • 15th Oct 16, 7:13 AM
    • #8
    • 15th Oct 16, 7:13 AM
    As sourcrates suggested, it's really worth doing a CCA request.

    I owe a similar amount to you (£32k), to similar creditors (Westcot, Cabot, NCO), and have been doing a DMP for a similar amount of time (5 years).

    After CCAing all my creditors in August, an account that I opened in 2006 has come back saying they can't fulfil the CCA request due to the age of the account. This has effectively "settled" £8k of my debts at 0.02% - the cost of a £1 postal order and a second class stamp.

    Only one has so far complied with my CCA request, withe the remainder having "written to the original creditor". Obviously the longer they take to reply, the more it increases the chance they can't provide the information, and in the meantime they cannot enforce the debt.
    Last edited by DrWatson1; 15-10-2016 at 7:16 AM.
    • M1BDK
    • By M1BDK 15th Oct 16, 7:34 AM
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    M1BDK
    • #9
    • 15th Oct 16, 7:34 AM
    • #9
    • 15th Oct 16, 7:34 AM
    Thank you. It seems I really should do this then. I'd tried with offers first thinking I may be a little more successful, as just want to get this sorted.

    So if they can't produce the CCA what happens next? I.e. When your one came back how did you get it written off? Sorry I just have no idea about this detail.
    • sourcrates
    • By sourcrates 15th Oct 16, 11:15 AM
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    sourcrates
    So if they can't produce the CCA what happens next? I.e. When your one came back how did you get it written off? Sorry I just have no idea about this detail.
    Originally posted by M1BDK
    The debts are not written off, they still exist, the only thing that changes is the fact they cant use the court system to enforce the agreement any longer.

    They can still ask you to pay, they can still record your non payment on your credit file, most creditors will be able to produce something for you, a reconstituted copy is sufficient in most cases.

    However Pre-April 2007 agreements need special attention as stated previously.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • M1BDK
    • By M1BDK 15th Oct 16, 5:20 PM
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    M1BDK
    Thanks, probably not much point for me then as I want these paid off and over, not hanging around.
    • sourcrates
    • By sourcrates 15th Oct 16, 5:52 PM
    • 8,315 Posts
    • 8,140 Thanks
    sourcrates
    Thanks, probably not much point for me then as I want these paid off and over, not hanging around.
    Originally posted by M1BDK
    The reality is this, if a creditor cant produce a valid agreement, and you tell them your not going to pay, they usually go quiet.

    Occasionally they sell on the debt, without divulging to the 3rd party no agreement exists, this is easily sorted with one letter, if the owner is a debt purchaser, such as Lowell, they will write off the debt, as a commercial decision, and it will then be gone for good.

    Can be a very useful tool to just have a low offer accepted as well you see, no agreement, oh, well will you take £50 then ? yes ok, thanks.

    So always worth doing, could be the best quid you've ever spent.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • DrWatson1
    • By DrWatson1 15th Oct 16, 8:59 PM
    • 49 Posts
    • 29 Thanks
    DrWatson1
    I have to agree with Sourcrates based on my experience. My letter from Lowell-Moorcroft regarding the £8k debt I mentioned earlier had a very resigned tone.

    I would guess if I offered them 10% full and final, they would snap my hand off.

    And that's what the CCA does - give you leverage in the negotiation. It took me less than 2 months to get to a point where I can either ignore the debt or settle for a super low amount.

    If I hadn't CCA'd it, I probably would have been struggling to get them to settle for anything less than £4k within the same 2 month time frame.

    In my opinion, you're just chucking (your families) money away if you don't CCA the accounts.
    • M1BDK
    • By M1BDK 9th Nov 16, 8:21 AM
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    M1BDK
    Morning
    So, I've written to them all with the CCA letter and £1 postal order.
    Wescot have returned my letter and are telling me I need to write to the orignal lender, despite telling me I must deal with them on every aspect of my debt in the past.
    Any advice on Wescot? Surely they're either acting on the lenders behalf as relates to this debt, or they're not?
    • sourcrates
    • By sourcrates 9th Nov 16, 9:04 AM
    • 8,315 Posts
    • 8,140 Thanks
    sourcrates
    Morning
    So, I've written to them all with the CCA letter and £1 postal order.
    Wescot have returned my letter and are telling me I need to write to the orignal lender, despite telling me I must deal with them on every aspect of my debt in the past.
    Any advice on Wescot? Surely they're either acting on the lenders behalf as relates to this debt, or they're not?
    Originally posted by M1BDK
    That's incorrect, they are obliged to pass your request to the OC, but to save time you may as well do it yourself.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
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