Moorcroft debt agency - received reply, help!

honeyD

I have a debt with Moorcroft of £155, it was way over £1000+ so a lot has been paid off.
Its a bit complicated but the debt is shared between me and my mum. We both pay half of the monthly amount and I take care of the payments. I have been paying a lot extra this year in order to get my share fully paid off and got to owing £35 now myself and the rest is my mums. I have been a bit stupid and not made a payment since August but figured it would be ok since I paid so much over the top and it would cover it. To be honest I just kept forgetting then when I remembered there was always a reason why I couldnt do it and I have to use my Husband's card to pay which means having to go to the bank to check all the time which is annoying but not right to stop paying I know. I received a letter yesterday saying we are £13 in arrears so quickly paid £15 through BillPay so it should be with them soon. However my mum got a call from them today (Sunday morning!) to say there were arrears and nothing had been paid since August and although I told my mum I had paid the £15 she forgot so didnt really know what to say to Moorcroft.
The woman she spoke to was very threatening, saying they will send someone out and start proceedings and all sorts! She said can you pay the full amount? mum said no. She said can you pay half? mum said no. So then she said they want a payment of £55 NOW! But its not even in arrears of £55! only £13 and Ive paid £15!
I am wanting to offer them a full and final payment just to get the damn thing gone but not sure how much to offer? Obviously they have had a lot of money from us so far so the lower I can get it the better although I wont be able to pay it off for a couple more weeks. What would be a suitable figure to offer them considering the debt is £140 now?

timmmers

They will have paid less than half the original debt from whoever they bought it from, and you've paid way past that already so they are in profit. Shame you couldn't offer earlier really, could have saved some money maybe ?

Someone with more knowledge will have a better idea here, but I'd guess that 55 quid may have been accepted.

I think that whatever you offer will be best done by letter and include a default promise...then you're rid of it and can relax.

Sad how much money they have made from this situation.

t

rog2

Moorcroft are, indeed, a difficult 'company' to deal with.
Personally, I would have gone down the 'Full and Final Settlement' route long ago, as Moorcroft probably paid less than £200 for the original debt.
That said, do not make any 'offers' to Moorcroft over the phone - keep all correspondence in writing only.
Given that the 'balance' is around £140, I would make your initial 'F&F' offer at around £40.00.
Read the National Debtline factsheet on 'Full and Final Settlement Offers' before making any offer, and use the template letter to make such offers:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Remember never to make a payment until they have agreed, in writing, that it will be accepted "In Full and Final Settlement" of the account - accept no other wording - and that nobody will pursue you in the future for further payment of this account.

DarkConvict

Just to point out if it is a joint debt, you are both liable for the full amount, so even if you paid 1/2 off it off, they would still chase both of your for the remainder, whilst F&F offers would be good, just informing you that overpaying then reducing isn't how they would see it, as there isn't anything as 'your share' just set monthly payments or above against the whole debt.

honeyD

Thankyou for the replies. I wish I had came here sooner.
Ive not been in the financial position to offer anything before and now it is lower I can possibly get the money together before christmas to pay it off if they will accept. Its worth a try at least, worst they can say is no I guess!

honeyD

DarkConvict wrote: »

Just to point out if it is a joint debt, you are both liable for the full amount, so even if you paid 1/2 off it off, they would still chase both of your for the remainder, whilst F&F offers would be good, just informing you that overpaying then reducing isn't how they would see it, as there isn't anything as 'your share' just set monthly payments or above against the whole debt.

Its only a joint debt as such that we both bought from a catalogue and went overboard as seems to happen a lot as you just get carried away with the "buy now pay in 6 months" offer. The debt is only in 1 name but we both pay it off jointly.

DarkConvict

Ah okay, if its in one name i assume that is why they are contacting your mum. There are F&F template letters about which you could use. - http://forums.moneysavingexpert.com/showthread.html?p=26867873#post26867873

honeyD

Will they definitely keep this in writing or will they be calling do you think?
I would rather keep it all in writing if I can so that my mum isnt troubled by these people again as they really are not very nice.

rog2

honeyD wrote: »

Will they definitely keep this in writing or will they be calling do you think?

Unfortunately, honey, Moorcroft are not well known for respecting the debtor's legitimate request to keep all communication in writing only.
However, if you have requested that all correspondence be kept in writing, continued telephone calls, from Moorcroft, can be construed as 'Harassment' which is illegal.
Each, and every, time that they phone, you should refuse to talk to them and tell them that their call will be logged and reported to the relevant authorities.
Do not answer the 'security' question which is designed to confirm your identity, and without which they must not, legally, discuss the debt with you.

http://www.oft.gov.uk/shared_oft/business_leaflets/consumer_credit/oft664.pdf

honeyD

Thanks for the replies so far. I have typed a letter up offering £40 F&F settlement and I have a question. Do I sign it or would my name typed be enough?
I really dont want to sign it if I dont have to.

DarkConvict

Type the name, do not sign. Also put a deadline date of either 7 or 14 days from the date you post the letter, otherwise they will never reply.

I've tried to make one (modified one from never-in-doubt), but be sure before sending any letters, someone here checks it over to ensure it is correct.

Dear Sirs,

Account No: XXXXXXXX

I write with reference to previous communication regarding an outstanding balance on the above mentioned account and wish to make an offer to resolve that will suitably please both parties.

I do have an outstanding balance on the account, as such I propose to offer a full and final payment of £40 to settle and close this account so long as you can agree to, and ensure 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 / 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

If you're happy with my proposal, please respond confirming each of the above points on official letterheaded paper, confirming the exact amount owing and I will send a cheque by return.

The deadline for this offer is <<date>> and if i have not received written confirmation of acceptance, then offer shall be withdrawn with funds being used to pay other creditors.

I look forward to your response.

Yours faithfully

<<Type Name>>