unenforceable debt - does the full balance remain on file ?

littlebananafeet

Hello there,

I am considering asking by letter for the terms and conditions of my old Lloyds TSB credit card to see if it is unenforceable.

The reason being is that I owe £6600 on the account and for two years I have been paying a reduced amount of £7 per month to them. (they froze the interest etc at the time).

I was considering offering a full and final settlement on this debt but I wanted to start off low like an offer of approx 10%-15% settlement. I don't have a great deal of cash lump sum you see so I'm trying to pay off as many creditors as I possibly can by f&f.

My thoughts were that if this debt is unenforceable than maybe they would be more inclined to accept my offer.


Could you please offer any advice ?

Thanks

gizmo111

If you have an unenforceable agreement they are more likel yto accept a low F&F. As part of the F&F ask then to mark your credit file satisfied.

carlos700

littlebananafeet- i hope you can help me with some advice i have been on DMP for some time LLoyds CC are the only ones giving me hassel ,they will not freeze my interest & keep putting on charges im about 1 year into my DMP .How did you get them to stop interest ? they stoped it for me but only for 6 months .Did you write to ask for you CCA ? i owe alot less than you and i am offering them more than you so i am hoping they may accept my reduced payments one day . I have just wrote them a letter asking them again to stop interest i hope this works .
good luck with your offers

littlebananafeet

Thanks Gizmo111.:beer:

Hi Carlos700, I am no expert on this but I can let you know what I did if it helps you.

I am not on a debt management programme through one of those companies who advertise. I initially went to the Citizens Advice Bureau and they sent letters to all of my creditors for my unsecured debts. The CAB were sooo slow with this process so I decided to contact my creditors myself.

I wrote to them all advising I couldn't pay the usual amounts and I enclosed a filled in income and expenditure form. I worked out pro rata what was left for each creditor. I also asked them all to freeze the interest.
They all did this.

Are you on a DMP that you have done yourself or are you with one of those companies that arrange it for you ? My thoughts are that if you are still having interest applied on the debts a year later then you need to get something done about it. I told my creditors that if they did not freeze the interest then I would never be able to pay them back and they'd also be pushing me further into debt.

Regarding full and final settlements - I've settled off a few by doing this, but always do this in writing. For example, I owed capital one credit card £900 I offered £400 and they accepted last month. On another credit card I owed £400 and they accepted £200.

p.s. It isn't a case of them accepting your reduced payments one day. If what you are offering them is all you can realistically afford then you are telling them what you can pay. If they don't like it they may send you defaults etc, but you can't get blood from a stone so to speak. If you send them an income and expenditure form and a letter then they should accept.

For your advice, there is a section on here, debt free wannabee and there are some lovely people on there who can help you(Read some of the posts on there).

I hope this helps you.