Credit Card settlement discounts

Ivor_Nowt_09

Hi all,

I am currently managing my CC debts with a Debt Free Management company (Debt Free Helpline - DFH). I could be in a position to settle these debts - aprox £23k in total.
Now DFH have said they can act on my behalf with these CC companies (TSB, Natwest, Tesco and Barclaycard) to get a reduced settlement figure, however they would take 30% of the discount as their cut !!

My question to all you out there is has anybody tried this and been successful on your own - what 'discount' did you manage to get.
I'm afraid that the companies will offer no discount and possible end my current agreed repayment plans if I call them asking for a discounted settlement figure.

Any comments / help appreciated and thanks in advance

costapkt

Have been offered 40% discount of a card company. but could not afford it !!!. Also many DCAs after a few months will offer you a discount figure.
Do not pay any one to do this . All you have to do is ask them yourself.
If you have any spare cash.
Send them a request for a "Full & Final Settlement "
As many credit card and loan company's sell their debts on for say 10 or 15% of balance. Then I would offer them say 20% and see how you get on.
Make sure that if they do accept your offer that the difference in what you pay and what you owe is going to be written off. Otherwise they will send that difference to another DCA and the process starts again.

fermi

No point paying anyone to do it for you.

30% ? :eek::eek::eek::eek::eek::eek:

They are ripping off you and the lender.

Info to do it yourself without fees is here:

Link: Factsheet | Full & Final Settlement offers

Ivor_Nowt_09

Thanks guys for your response.

I will certainly have a go a getting the discount myself using the Factsheet and guide letters Fermi - so many thanks for those.
Let you know how I get on

kind regards

SomeGeezer

Ivor, 10 years ago I owed about 25k in loans and credit cards. I sold my house and had some spare cash. I called all the creditors after they had been chasing me for months and months (and with me largely ignoring them) to give them a really bad sob story (lost my job had to sell my house etc - which was true) but I did have some money and would they be prepared to settle the debt if I paid them £X amount. In summary most of them, after speaking with a manager, took roughly half of what I owed them. About 12.5k in total. Bonus!

Remember: After speaking with them make sure you get a letter from them on headed paper confirming their acceptance of your offer before you pay them. Then all youhave to do is spend the next 3 months chasing them to make sure they update the credit agencies of the settlement.

I could have so easily declared myself bankrupt and kept the proceeds of the sale of my house all for myself. But you know what? I am so glad I settled the debts. I got myself in that mess and I had to pay them back myself rather than taking the easy option.

Good luck mate.

jonesMUFCforever

I think that your cash from the sale of your house would have been used to pay off your creditors had you declared yourself bankrupt.

Ivor_Nowt_09

Well, I have written all the letters to my 4 creditors and posted them last week, I await their responses !

I will keep you updated with how I get on, I doubt that they will accept my first offers but you never know !

Ivor_Nowt_09

Hi All,

No real surprise, Tesco and Natwest have refused my initial offer and Barclaycard have ignored it and just sent another monthly bill. Still waiting for TSB.
I am a little surprised that both Natwest and Tesco have point blank refused my offer and not even suggesting a settlement figure themselves. (got an identical letter from them signed by the same Recoveries manager!)

Does anybody know where I can get other template letters to write back to them, or indeed what to say again in answer to their refusals?

thanks in advance

kdallas0151

I have just saved £3000 on one credit agreement to no extra cost to my self. over the past 5 years i have cleared numerous debts with the guidance of the cccs (consumer credit counseling service) which is totaly free and provides all the help you need. dont forget what you pay someone to sort out your debts could be paying towards your debt its self. be honest to yourself on the financial break down and the creditors Will accept a minimum payment or even token payment of £1 in most cases. Hope this helps

Ivor_Nowt_09

Hi Kdallas0151
Well done for saving the £3k you must be chuffed !
As per my posts above I have been using a DMP for the past 6 mnths to manage by creditors but now am able to offer them a settlement by DMP (Debtfree helpline DFH) want a 30% cut for 'their work'
This is why I am trying to go it aloan and want some ideas of what to write back to the creditors now they have refused my offers

thanks again

Ivor_Nowt_09

I have put together this reply to their refusals............

Dear Sir/Madam

Re: 5434 6800 xxxx xxxx
Ref: COLxxx

Thank you for your letter, concerning the above account. I am sorry that you are unable to accept my original offer of £1735.00 in full and final settlement

Since my previous letter I have been able to increase my short-term funds to a maximum of £17,000. These funds are being made available to me via a family friend on a short-term basis, after which the money will no longer be available.

As previously mentioned I will have to split this fairly between my existing creditors and will result in an increased, maximum offer of £2500.00 to you.

I want to offer this an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released for any liability.

I would therefore be grateful if you would reconsider your decision, taking into account my previous long account history with you, one that until recently has been unblemished.

As previously mentioned payment can be made within 7 days of receiving your written agreement of this offer and method of payment.

I look forward to receiving your reply.
Yours faithfully

anybody got any comments as to its content, is it OK, need anything adding or removing ?
as always , appreciate any offers of help

rgds