anyone tried settlement offers with creditors?

mr_ice2005

I am currently on a Debt Management Plan with CCCS (since feb 2007).
Credit Cards & Egg unsecured loan currently at £10k

I am thinking if of selling my only asset whichi is car worth 3k.

If i offer this 3k to one of the creditors i owe 6k to do you think they will write off the debt? I have been made redundant so i wont be paying anyone anything for the time being. Im considering making them this offer but want to know if anyone has done the same?

thanks

Pippilongstocking

Egg settled with me balance 3383 needed to give an immediate payment of 170 then they settled for - for 2300 - I needed to go into default to do it - which I know wasn't wise - they wouldn't negotiate with me prior to that and then they used - collect direct uk who offered me an interest free repayment plan for the whole amount or to settle within 2 weeks for 2300 - I took that - don't know much about DMP's but that's just my experience with Mr Egg.

I took an interest free loan from a pal and paid off the 2300 - they can only say no - so (although I dont know anything about DMP's) I would give it a go.

GeorgeUK

There are a few people on the site that have made settlement offers. Make sure before sending payment that they confirm IN WRITING the amount and that it is a "full and final settlement" rather than a partial settlement.

The rule of thumb advised on the board is for the original creditor, offer between 50%-70% and if the debt is with a debt collection agenct, 30%-50% as an initial offer.

Have you looked at other alternatives such as requesting copies of the CCA? If they can't provide a copy of the CCA then the debt may be unenforcable, which would put you in a much stronger position to make a settlement offer - if any.

Deep_In_Debt

Hi
As previously mentioned, I negotiated some good F&F offers when my debts were passed to debt collection agencies. The original creditors would accept no less than 70% as F&F whereas the DCA's accepted 45% and 55%. As GeorgeUK says, make sure you get it in writing before you send any money that this is F&F and that your credit file will be marked as satisfied and that neither they, nor any associate or third party will chase you for the remainder at a later date and that you are released from any further liability. This is important.

I'm in a similar situation to you, I've just been made redundant and have had a fairly good lump sum payment as I'd been with my company nearly 12 years that I am trying to negotiate F&F's on many of my debts too as my lump sum is not enough to clear them in full. I wrote to them, using a template letter from the National Debtline, and amended it to my circumstances and said that I'd been made redundant at the moment have no other full time job so therefore, it would be in their interests to seriously consider my offer, or words to that effect. CCCS also have information and a standard letter that they can send you but I preferred the NDL one. I also didn't tell my creditors how much money I had to offer.

DCA's tend to be easier to negotiate with as they buy the debts for peanuts so it may be worth waiting until it gets passed on and save the money in a high interest account until that time.

Be prepared for some to'ing and fro'ing but stand your ground and don't let them bully you into paying more.

Good luck.

THE_LONE_RANGER_4

I did ff offers once they had been with the dca for around a year or so i did get massive discounts and only paid when i recieved a letter stateing ff offer from them, my friend has just been offered ff by some dca both for captal one debts £750 accept £110 £950 accept £130, to be honest i think the deeper the credit crunch bites the better position on ff will be after all its better than nothing and i believe the dca are paying less for purchaseing debts.

mr_ice2005

thanks for the reply guys

i owe 5k in eggloan and 2k in egg creditcard = 7k in total

i will offer then 3.5k. I will be writing a letter tonight

thanks again.

GeorgeUK

There's a good example of a letter here. It clearly defines what you require from them and to marke the entry on your credit file as settled. It is often advised to say that you are getting the money from a 3rd party and that the funds are only available for a limited time.

http://forums.moneysavingexpert.com/showthread.html?t=1200137