Credit Card settlement discounts

never-in-doubt

costaerer wrote: »

do u think i should send the letters to the dca and creditors??

well if a DCA is involved you should have no contact with the OC - you deal with whoever owns the account.... if the OC has not assigned the debt to a DCA and the DCA registers a default they've acted unlawfully...... its complex to explain but basically you deal with whoever owns the account.

Ivor_Nowt_09

OK, I am going to call Lloyds TSB and Barclaycard tomorrow and ask for a F&F figure, if they agree then get them to send it in writing together with confirmation that they will do all if not most of these....

The Default Notice will be removed
The Status of the account will change from “Defaulted” to “Settled”
The Current Balance will appear as £0.00
The Default / Delinquent Balance will be set to £0.00
There will be no date in the “Defaulted Date” field (as it will be removed)
There will be no date in the “Date Last Delinquent” field on the report
This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit

I'll also re-send my letter to Natwest and Tesco as outlined in my example above to offer an increased offer in f&f

See how I get on with that....any comments?
rgds

costaerer

good luck!!!

never-in-doubt

Ivor_Nowt_09 wrote: »

OK, I am going to call Lloyds TSB and Barclaycard tomorrow and ask for a F&F figure, if they agree then get them to send it in writing together with confirmation that they will do all if not most of these....

I'll also re-send my letter to Natwest and Tesco as outlined in my example above to offer an increased offer in f&f

See how I get on with that....any comments?
rgds

Thats right - forget ringing - do it in writing! Any1 can agree over the phone, it means nothing...... you have to send everything in writing and forget ringing a contact centre that really don't need the hassle (they may agree to anything to get rid of you!)......

Just send a letter making it clear you offer £XXX amount (no more than 50%) otherwise they run the risk of £0 when you go bankrupt and use the money on offer to pay for it. They will then see you're serious and will probably take it......

Good Luck!

Ivor_Nowt_09

Ivor_Nowt_09 wrote: »

Hi Costaerer
Thanks for your info, I have yet to hear from both Barclaycard and Lloyds with regards to my initial offer (52%) so interesting to hear you say that they accepted 70%. Didi you need to call anybody particular at the CC companies or just a standard customer service agent? - how long did it take them to offer this amount?
thanks again

Just got got an acceptance from Lloyds TSB..

The letter states this:

"Outstanding balance £12,052 Full & Final settlement amount £8606

This offer is made on the undersanding that the F & F amount be paid within 28days...When this has been paid your credit record will be updated to show the debt as 'partially settled' for 6 years."

Wow ..am I correct in saying that in 6 years they (or another debt coccection agency) can chase me for the remaining £3,400? or is it after 6 years the rest is written off??

any comments appreciated

CannyJock

Ivor_Nowt_09 wrote: »

Wow ..am I correct in saying that in 6 years they (or another debt coccection agency) can chase me for the remaining £3,400? or is it after 6 years the rest is written off??

You won't be pursued for the £3,400 provided you make your payment in 28 days. It does mean that for 6 years your credit score will be drastically affected, but I'm guessing from your sig that's not a priority for you just now.

never-in-doubt

Ivor_Nowt_09 wrote: »

Just got got an acceptance from Lloyds TSB..

The letter states this:

"Outstanding balance £12,052 Full & Final settlement amount £8606

This offer is made on the undersanding that the F & F amount be paid within 28days...When this has been paid your credit record will be updated to show the debt as 'partially settled' for 6 years."

Wow ..am I correct in saying that in 6 years they (or another debt coccection agency) can chase me for the remaining £3,400? or is it after 6 years the rest is written off??

any comments appreciated

Just wrote a long reply then browser crashed so sod that! Send a letter like this and do not pay until they agree to remove the default.

http://forums.moneysavingexpert.com/showpost.html?p=22278721&postcount=435

Obviously amend it to suit your needs and make sure you do not pay on tha understanding they will mark your credit file 'seetled' - a settled default is still a default and means no credit for 6yrs.

Personally, i'd be prone to reduce the F&F to around £5k with the addition of removal of default or say you'll look at going bankrupt then just ignore them for 5 years and by then you will owe nothing (statute barred).

Its up to you what you do but i'd never pay £8k and still have a default - i'd tell em to p!sh-off unless default is taken off. But thats up to you.

they cannot do anything to you, i.e. a default is as bad as it gets and all that means is no credit for 6yrs.....

Ivor_Nowt_09

Please can you help further guys...I have drafted this reply to TSB, I do wish to solve this ASAP and don't want it to carry on for another 6 years..any additions to my letter appreciated to get my point accross.

Here is what I have so far...


Thank you for your letter, concerning the above account stating that you are prepared to accept £8,606.00 in full and final settlement (copy attached).

Your letter states that as long as the payment is made within 28days my credit record will be updated to show the debt as “partially settled” for 6 years.



As per my previous correspondence I am more than happy to make an immediate payment of £8606.00 as full and final settlement of the account in exchange for total account closure with your agreement and, subsequently ensuring, that the following actions will be carried out;

• The Default Notice will be removed
• The Status of the account will change from “Defaulted” to “Settled”
• The Current Balance will appear as £0.00
• The Default Balance will be set to £0.00
• There will be no date in the “Defaulted Date” field (as it will be removed)
• There will be no date in the “Date Last Delinquent” field on the report

This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit
I wish to clarify that you are prepared to accept the above and confirm this in writing before payment is sent. Once this is done the amount of £8606.00 will be sent via bank transfer.

I look forward to receiving your reply.

As always , thanks for your help

never-in-doubt

Ivor_Nowt_09 wrote: »

Please can you help further guys...I have drafted this reply to TSB, I do wish to solve this ASAP and don't want it to carry on for another 6 years..any additions to my letter appreciated to get my point accross.

Here is what I have so far...


Thank you for your letter, concerning the above account stating that you are prepared to accept £8,606.00 in full and final settlement (copy attached).

Your letter states that as long as the payment is made within 28days my credit record will be updated to show the debt as “partially settled” for 6 years.




As per my previous correspondence I am more than happy to make an immediate payment of £8606.00 as full and final settlement of the account in exchange for total account closure with your agreement and, subsequently ensuring, that the following actions will be carried out;

• The Default Notice will be removed
• The Status of the account will change from “Defaulted” to “Settled”
• The Current Balance will appear as £0.00
• The Default Balance will be set to £0.00
• There will be no date in the “Defaulted Date” field (as it will be removed)
• There will be no date in the “Date Last Delinquent” field on the report

This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit
I wish to clarify that you are prepared to accept the above and confirm this in writing before payment is sent. Once this is done the amount of £8606.00 will be sent via bank transfer.

I look forward to receiving your reply.

As always , thanks for your help

Hiya

Letter is fine but the offer is way too high - you need to drop it to at least £5k and make a whole new offer this way you increase to £8k if necessary if it helps remove the default.

You go straight in and pay they may not remove it and then you're £8k worse off and still cant get credit for 6yrs.....

Up to you but i'd tell em £5k is my lot! :j

Ivor_Nowt_09

never-in-doubt wrote: »

Hiya

Letter is fine but the offer is way too high - you need to drop it to at least £5k and make a whole new offer this way you increase to £8k if necessary if it helps remove the default.

You go straight in and pay they may not remove it and then you're £8k worse off and still cant get credit for 6yrs.....

Up to you but i'd tell em £5k is my lot! :j

This is now been going on with TSB since June 17th where my initial offer £6075 and subsequent offers until now have all be rejected. Where we are today is that they have accepted an offer of £8606.
I agree I certainly don't want to simply pay the £8k and still can't get credit for six years hence my initial post.

My concern is that If I now go back with a lower offer I am back to square one. If I can get them to agree to the conditions then happy days ..

Are you saying to go back with offer of £5k and alow them to update my credit record as "partially settled" for 6 years, thus having no credit in this time but saving myself almost £7K ????????