Is this a reasonable reclaiming bargain strategy?

TG82

I am owed £1170 including interest. I have submitted my claim, with hardship as I'm a full-time student with a £1,500 overdraft but none left.

I have said that if they pay me the full amount, I will agree to spend £500 of it on paying off my overdraft, and they can then cap it at £1000.

If they reject this offer, I am willing, IF THEY PAY ME IN FULL, to use all of the money towards paying off my overdraft, and they can then cap it (I won't tell them this yet though). It wouldn't be ideal, because as I'm in hardship I could do with a few hundred spare while I finish this course, but the thought of having a very low overdraft when I finish the course is very enticing.

Do people think the banks will be responsive to this strategy or simply see it as another way of losing money?

natweststaffmember

TG82 wrote: »

I am owed £1170 including interest. I have submitted my claim, with hardship as I'm a full-time student with a £1,500 overdraft but none left.

I have said that if they pay me the full amount, I will agree to spend £500 of it on paying off my overdraft, and they can then cap it at £1000.

If they reject this offer, I am willing, IF THEY PAY ME IN FULL, to use all of the money towards paying off my overdraft, and they can then cap it (I won't tell them this yet though). It wouldn't be ideal, because as I'm in hardship I could do with a few hundred spare while I finish this course, but the thought of having a very low overdraft when I finish the course is very enticing.

Do people think the banks will be responsive to this strategy or simply see it as another way of losing money?

No they won't. Financial Hardship cases are about exactly that. Quite frankly, they either assess your circumstances and either say YES or NO and make you aware of the decision.
Most people who get a YES have severe financial hardship which means they could lose their house, liberty or essential utilities. The only time I advise negotiation is on increasing an offer if it is insufficient to cover arrears.
Don't negotiate less back as that would be foolish to do so.

TG82

natweststaffmember wrote: »

No they won't. Financial Hardship cases are about exactly that. Quite frankly, they either assess your circumstances and either say YES or NO and make you aware of the decision.
Most people who get a YES have severe financial hardship which means they could lose their house, liberty or essential utilities. The only time I advise negotiation is on increasing an offer if it is insufficient to cover arrears.
Don't negotiate less back as that would be foolish to do so.

I'm not trying to negotiate less back. I'm just saying to them You give me the full amount, well here's a proposition for you - you won't technically have to pay out, because I'll use that money to pay off my overdraft. And then they can cap my overdraft so I won't withdraw the money again.

That way, they won't be pestering me to repay as soon as I finish this MSc, which they were when I graduated as an undergrad.

Surely if they have to pay out they'd rather see the money paid back to them than spent on other things? I'm also demonstrating that I'm willing to be more financially responsible by paying back what they are owed.

natweststaffmember

TG82 wrote: »

I'm not trying to negotiate less back. I'm just saying to them You give me the full amount, well here's a proposition for you - you won't technically have to pay out, because I'll use that money to pay off my overdraft. And then they can cap my overdraft so I won't withdraw the money again.

That way, they won't be pestering me to repay as soon as I finish this MSc, which they were when I graduated as an undergrad.

Surely if they have to pay out they'd rather see the money paid back to them than spent on other things? I'm also demonstrating that I'm willing to be more financially responsible by paying back what they are owed.

And you may be showing that you are NOT in financial hardship and so therefore, do not require the funds immediately because you are not in danger of losing your house, your liberty or essential utilities. Sorry, but I don't think that is the basis of a financial hardship case.