Nationwide reduced settlement

langtod8

Hi there, I have several debts that I am making reduced repayments to, all negotiated myself. This has been going on for a little over 3 years now and I have managed to pay off a fair bit of my debt. (down from about £23k to now about £15k). Nationwide have started to get a lot more heavy handed in their approach so my payments to them have been increasing roughly every 3 months for the last year and I am now paying a little more than my monthly payments to go towards my arrears.

My Dad has now suggested that he may be willing to loan me the money to offer a reduced settlement to nationwide, allowing me to save the money I was paying to them in order to make similar offers to my other creditors. Mixing the money I was paying them with some money from my wife monthly I estimate that I should be able to clear my debts at an average of 50% settlement in around 18 months.

I therefore approached nationwide who have made a full and final settlement offer to me of £4700 on a £6500 debt, marking the debt as satisfied on my credit file. Has anyone any experience with nationwide? Is it worth me pushing further on this with a lower formal offer in writing? I was hoping to get them as low as £3000, but don't know if I am just fooling myself there.

Tixy

Sorry no personal experience of nationwide but my thoughts-

When the debt is with the original creditor they usually require a higher percentage than a DCA to settle a debt.

What were the original debts for? Have you tried requesting a CCA (if applicable) to see whether they hold a legally enforceable CCA? If they don't you could expect to negotiate a lower settlement.

If they do hold the releveant paperwork then I think you would be lucky to get them to accept as low as £3000 (ie less than 50%), especially as you have been increasing your repayments to them.

Are they charging interest or any fees on the debts?

langtod8

There is no interest, but they are adding late fees on every month, and I have not had an explanation I fully understand on that one. My payments are not late in my opinion, until this month they have just been under the contracted rate.

I have not tried getting the CCA. I am very anxious about angering my creditors. Is it really worth doing it for each of my debts? (2 credit cards, 1 flexible loan, 1 other unsecured loan)

langtod8

Well after the above statement's I get home to a letter from KPR debt collection demanding full payment. It seems from reading around here that this is just nationwide requesting it through a different name and not a real debt colleciton agency, does that sound correct? It is my intention to request my CCA in response, but does anyone know if I should make the £1 cheque payable to KPR or nationwide?

SolvingDebtCrisis

KPR wrote to me offering me a Discount payment on outstanding balance of Nationwide debt open for 7 days. This debt resulted after they reduced my 1000 pounds overdraft to 500 pounds (sorry no symbol on laptop) and the rest occured in charges thereafter.

I contacted KPR to enquire about the discounted payment, they said they could only offer 620 pounds from 1200 pounds of debt as final settlement.

I asked them to send me a letter confirming the agreement as I have to borrow money from family to pay this. It is nearly a week since we spoke and still no letter from them confirming this agreement.

Don't know what to do next.

DarkConvict

My payments are not late in my opinion, until this month they have just been under the contracted rate.

Ergo they were late, failure to pay the min contractual amount is deemed a late payment. So a £12 fee is applied.

If i were you i would try and get them to go lower, " £4700 on a £6500" is 72%. Which is a high settlement offer. I would not even exceed 70% as an offer. So i would counter offer nationwide a 50% settlement due to limited funds offered by a family member but state you are open to negotiation.
Hopefully they will come back with a lower than 72% offer.