Advice of drafting letter to Creditor

UKNorthEast

I need to write to a creditor, asking to repay the accumulated debt in monthly payments - I have drafted this letter, can anyone offer any advice on what ive written?

"Since making that above agreement, our financial circumstances have changed.

The amount that is stated in your letter is a vast amount of money that at this time we are unable to pay in full. I would be extremely grateful if you could provide a detailed, full breakdown of the account including any interest or charges applied in line with the Consumer Credit Act 1974 [sections 77-79]

In view of our circumstances, it would be greatly appreciated if you would agree to accept an offer of £XX per month. If interest or other charges are being added to the account we would be grateful if you would freeze these so that all payments made will reduce what I owe you.

Should our circumstances improve we will, of course, contact you again.

We would be grateful if you would send appropriate details for us to establish a standing order to make it easier to pay you.

Please be assured that it is a priority for us that this debt is cleared.

Thank you for your assistance and patience. We look forward to hearing from you as soon as possible"

Thanks everyone!

sillylittlejill

That sounds really good to me, I am sending a very similar letter to our creditors at the moment. Can't see anything that needs changed but i would suggest hanging round and waiting for someone with more intelligence than me to give you some advice hehe

xxx

St0lli

UKNorthEast It may be worth having a look on the debtfreewanabee thread as I'm sure I read on there to make payments by postal order so that your creditor doesn't have your bank details and also just to print your name and not sign the letter. I think the reason for this is that some of the not so scrupulous companies may copy your signature onto documents....

HTH!

joe1965

2 Your road

Your town

your county

postcode

Date

Their name
their address
their postcode

Dear Sir/Madam

Re Account: ????????????
Since making an agreement with you, my/our circumstances have changed.

I/We cannot now afford to agreed monthly payments because Put your reason in here.
I/We enclose a Personal Budget sheet, which shows my/our total income from all sources, and my/our outgoings. As you can see, I/we have only £0.00 per month left for my/our creditors. The offers I/we have made to my/our creditors have worked out on a pro−rata basis, and I/we have written to all my/our creditors asking them to accept reduced payments.

In view of my/our circumstances, please would you agree to accept a reduced offer of £00 per month? Also, could you please consider using your discretion to freeze any interest or charges that might accumulate, which I/we am/are aware is the standard practice for socially responsible companies such as yourself.
Should my/our circumstances improve I/we will contact you again.
I/We would be grateful if you would send a paying−in book to make it easier to pay you. Thank you for your assistance. I/We look forward to hearing from you as soon as possible.

Yours faithfully


Edit/add what is required in the red parts.
I'll post up a decent budget planner for you if you wish or if you have Excel I can give you a link. Please let me know.

System

Excellent debt advice:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

Section 6 has selection of sample letters.

Also try Debt Free Wannabe section for support and advice:

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

Best of luck.

UNDERGROUND

Merlinexcalibur

I think the reason for this is that some of the not so scrupulous companies may copy your signature onto documents....

Precisely the reason. Some may even photocopy your signature onto a credit agreement. It's particularly important that you never sign your letters, particularly if it's to a debt collection agency. For the same reason.

Alternatively, you can make payments using standing order. Which means no paying extra for the PO and sending it. That also means the creditor - as I experienced recently and complained to the FOS as a result because I HAD paid, had the payment proof to prove I had yet the creditor considered otherwise - cannot say you haven't paid. Very often, they lose things like cheques or POs. When it suits them. Or they don't cash them and then suddenly you are getting a letter saying you haven't stuck to your repayment schedule. Standing order is safer, and you have the back up in case any disputes arise.

I am sure you already know this but send your letter(s) either by recorded delivery or by registered post. The reason for that is most creditors will deny receiving correspondence even when they have so you have proof you did send through the payment slip. That also applies to PO box numbers. Because those are signed for in batches at the receiving post office before being taken to the creditor's premises.

Just a question? Have you ever asked for a copy of your credit agreement from any of your creditors? I ask because it can give you more bargaining power if things get too heavy ie a debt collection agency starts harassing you. Without a CCA they are powerless to demand payment from you without going to court. And most will not take you to court without an agreement because of how it would make them look. Some, but not all.

Don't know if you have just thought to ask/suggest it.

You may already know all this but some others may not. As it's useful info.