Settling debt with Debt Collectors

ZackH

I have been ignoring my credit cards for 4 years now, never really bothered paying them off, never earnt enough to even consider paying them - I recently moved house and received a letter from Aktiv Kapital saying I have a credit card with an outstanding balance of £706 which needs my attention urgently.

They offered me various different options to close the account and the best one, by far, was to pay them a one off sum of £176 to settle the account in full.

I was delighted, obviously and felt I had got a good deal.


Today, Robinson Way are on my case for a debt of £2200, they called me and said I could settle with £1200, I said I would not pay more than £500 to settle and they are going to get back to me. I told them Aktiv Kapital were very generous. I was very firm and sounded like I knew what I was talking about! (which I don't!!)

But, I have been told, these companies buy the debt from the bank for a very small amount, which is why they can dramatically reduce it making out you're getting a good deal. Suits me!

GeorgeUK

Yes that's a good deal, but you need to be careful when agreeing to reduced settlements. Usually if you agree to a partial or short settlement, the debt is reduced by the amount you paid and will come back at a later date with someone looking for the remaining balance.

The nationaldebtline have a letter on their site you can use when making settlement offers but the important part is that you get it in writing that they are agreeing to a "full and final" settlement and that you will not be pursued for the outstanding amount.

Deep_In_Debt

As George has said, make sure you get the offer in writing, that it is in F&F and that neither they, nor associate, or third party will chase you for the remainder and that your credit file is marked as "satisfied". Accept nothing less.

Expect a bit of to'ing and fro'ing and they will be full of hot air for a while but persevere. It's worth it in the end.

DarkConvict

When you do full and final settlements, do keep the paperwork + bank statement showing payment, just in case anyone does try and chase you.

onlypaddy

DarkConvict wrote: »

When you do full and final settlements, do keep the paperwork + bank statement showing payment, just in case anyone does try and chase you.

Yes, Always!