Debt collectors discount offer on credit card balance...

wobblywizard

Hi just a quick post, I got a letter through today (dated 23rd December!) saying that if I can pay by the end of December they'll accept a 50% payment to close my vanquis card account. I owe £754 and they want £377.... so is there a catch??

It seems too good to be true really, as I will have the money soon and was thinking if I explain that I only just got the letter they'll still offer me the discount.

What do you think, should I go for it or will there be some kind of catch? The company is 1st credit limited it that helps... anyone had any dealings with them?
Thanks

Oneday77

I t would be worth waiting till you get the money your due. Then send them a F&F offer for half the amount, there is a template on the board, sorry I don't have the link. I doubt if they would turn it down, just remember never send payment until you get a reply in writing say they will accept it if they get payment prior to a newer date and will not pursue you for the remainder.

Numpty_Monkey

Use the template letter on here
http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#5

As the date there offer has passed, you need to make an offer , make sure you do it in writing and not by phone

never-in-doubt

missnikkai wrote: »

Hi just a quick post, I got a letter through today (dated 23rd December!) saying that if I can pay by the end of December they'll accept a 50% payment to close my vanquis card account. I owe £754 and they want £377.... so is there a catch??

It seems too good to be true really, as I will have the money soon and was thinking if I explain that I only just got the letter they'll still offer me the discount.

What do you think, should I go for it or will there be some kind of catch? The company is 1st credit limited it that helps... anyone had any dealings with them?
Thanks

They all do this, its like a sales ploy to bring in money!

What you have to bear in mind though, is that (assuming you're already defaulted) they will mark the default as Partial Settlement, i.e. it shows other lenders that you had a default and the balance was £754 but you paid £377 and the account is closed.

This is not a good thing, the default will hinder any credit applications you make for a period of 6 years from the date of default, afterwhich it falls off.

If you want to make an offer to the DCA, for settlement, then you need their authority to remove the default before you agree to pay - send this style of letter for best results (bear in mind you cannot speak to them, these things have to be in writing!):

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 propose to offer a full and final payment to settle and close this account to the value of £377, as previously indicated as acceptable by yourselves. A default to you and no payment will not achieve much and so I therefore write to try and resolve matters amicably, that will suit both of us long term.

The alternative is for me to place the account formally into dispute and demand s.10 CCA (1974) is brought into play (cease & desist) whilst I reclaim all unlawful charges combined with all costs. I shall then look at the legality of the assignment of debt; the issuance of a default notice and the agreement (prescribed terms) and between them, i'll probably be able to counter sue and litigate over unenforceability.


To confirm, I am more than happy to settle this account at the rate offered 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 your acceptance and the exact amount owing and I will send a cheque by return.

I look forward to your response.

Yours faithfully




Sign digitally

Wicca303

@ never-in-doubt

I know I'm not the OP but thanks for that letter. I'm bookmarking/storing it for use later, because it was something I wasn't aware of. I thought if I paid what they asked the debt would be discharged and that would be the end of it.

Thanks again.

Toni.

never-in-doubt

Wicca303 wrote: »

@ never-in-doubt

I know I'm not the OP but thanks for that letter. I'm bookmarking/storing it for use later, because it was something I wasn't aware of. I thought if I paid what they asked the debt would be discharged and that would be the end of it.

Thanks again.

Toni.

Hiya

Have a mooch of this little thread I done - it may help with future issues/questions you have: Credit Reference Agencies

For a list of letters - see here: Unenforceability & Template Letters II

Wicca303

Thanks have bookmarked both of those to read later (ie when I'm not supposed to be doing uni work!)

wobblywizard

Thanks so much for your replies you've all been very helpful!

I was going to call them today but will get a letter send straight out and call to let them know there's something in the post. By the time they get back in touch I'll have enough set aside to pay them off. Hopefully they'll still accept the £377!

I'll use the template, just wondering if I should send it recorded delivery or not... I've had dealings before where they "didn't recieve my letters".

Even if they won't wipe it from my credit file I'll still be happy that it's not hanging directly over my head. I dread opening the post with all these bills coming through...!

Thanks

longhauladdict

Hiya

I've posted this elsewhere but no joy with a response as yet. I have a similar situation where a DCA have sent me a letter regarding a debt I genuinely didn't know about. I'm happy to pay it (offering a F&F settlement first) but I would like it removed from my credit file, as it is the only default I've ever had!
However, Vodafone have placed the default and now SRJ collections are the DCA. If I make the offer to the DCA, they don't have the power to remove the default, right?
However, Vodafone have said that they can't deal with it as it has now been passed to a DCA- am I going to be stuck with this on my file??

xx thanks

never-in-doubt

missnikkai wrote: »

I was going to call them today but will get a letter send straight out and call to let them know there's something in the post.

Nooooo - no need to! Stop phoning, scrap that very bad habit and deal only in writing! You'll learn, like I have, they say one thing on the phone and another totally different thing in their letter!

Bottom line here is that you send your letter recorded (the orange sticker) which will prove that you posted today, i.e. in line with their deadline. However by law you'll find that you actually have a minimum of 12(+2) days for any agreement so don;t worry, they will still accept your offer of £377 as it is 50% of the debt - they probably bought it for 10% of value from the OC. Making a profit either way!

If they end up not agreeing to remove the default then offer less, say £200. They will then take that (as it is still a good offer) but you'll be left with a default.

missnikkai wrote: »

By the time they get back in touch I'll have enough set aside to pay them off. Hopefully they'll still accept the £377!

You have reasonable time to repay it, not just a sdate they specify. They would struggle to enforce anything in court if you paid a few days later than any agreed date.

missnikkai wrote: »

I'll use the template, just wondering if I should send it recorded delivery or not... I've had dealings before where they "didn't recieve my letters".

Yes, see above.

missnikkai wrote: »

Even if they won't wipe it from my credit file I'll still be happy that it's not hanging directly over my head. I dread opening the post with all these bills coming through...! Thanks

It won't affect for terribly if it is the only bad one you have, give it a year or two and some lenders like Tesco and your own bank would agree to credit, usually.

never-in-doubt

longhauladdict wrote: »

Hiya

I've posted this elsewhere but no joy with a response as yet. I have a similar situation where a DCA have sent me a letter regarding a debt I genuinely didn't know about. I'm happy to pay it (offering a F&F settlement first) but I would like it removed from my credit file, as it is the only default I've ever had!
However, Vodafone have placed the default and now SRJ collections are the DCA. If I make the offer to the DCA, they don't have the power to remove the default, right?
However, Vodafone have said that they can't deal with it as it has now been passed to a DCA- am I going to be stuck with this on my file??

xx thanks

Interesting, let me explain how defaults work and then you'll find the answer you seek and you can then go back and moan at both the DCA and the OC

A default can only be issued once for one debt, this means that say you default with Vodafone (Original Creditor - OC) only they can add a default. However, if they follow due-process and sell the debt to a third party Debt Collection Agent (DCA) then usually what happens is the Vodafone entry would show as 'settled' with a £0 balance (as they sold the debt so technically you do not owe Voda anymore) and in its place a new entry would show with the DCA's name and the same amount owing as what was on the old Voda entry - the difference being this would show as a live default.

Now, in order for this to be legal, at the point of sale the OC should send the DCA and you a copy of what is known as a Notice of Assignment (NoA) which tells you that they are passing the legal ownership of the debt to this third party and as such your rights transfer to them, i.e. they own the debt in its entirety so should be able to answer any questions you may have.

So, lets assume they did sell the debt to this third party company, your credit file should have a settled default from Vodafone and there should be a new entry using the original default date issued by Vodaphone with the DCA's details. There cannot be 2 live defaults nor can there be one from Vodafone if they state they are not the legal owners - so you need to confirm exactly what is happening by getting your Experian & Equifax credit files.

Also have you ever received any formal Notice of Assignment surrounding the legal ownership of the debt, in particular I am asking if Vodafone wrote to you and said that they had sold the debt?

Upon your response i'll be able to advise further...... but yea, generally the default will remain for 6 years but I am checking diligence with you first before advising next action as this varies depending on what you tell me!

Don't worry though, we'll sort it for you.