How to negotiate settlements?

pagenotfound2k

I'll sum this up without too much detail. I owe Barclaycard £2900. I've been regularly paying little amounts off during the last few years, and this has now been passed to Calders, having heard nothing from Barclaycard/Mercers for some time.

I negotiate a £5/month payment with Calders - I agree. They tell me they can offer me a settlement figure of about £900. I told them I will ask about for the money - I have since found it, and will contact them shortly.

I have been told to ask them to ensure the account and my credit rating are both mark as 'satisfied' and that I should ask for the settlement figure and agreement to satisfying the debt in writing.

Is there anything else I could ask to ensure this debt is settled and satisfied, so no other DCAs can chase me in the future? Any further advice?

DarkConvict

Have a gander at this. - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

This is info on F&F offers, it should also provide a template.

What you want from a F&F is,

• It is a full and final settlement on the debt
• Neither the creditor or 3rd parties will chase for the remainder, as the debt is considered settled in full.
• Your credit report is updated to satisfied and balance set to £0/nil.
• Set a deadline for 14 days for the reply
• Have it in writing (do not ever do it on the phone)
• Keep the written confirmation for 6 years (just incase they do sell it on by 'accident')

£900 is a 31% settlement on a £2900 debt, so that is a good offer. Some places do go as low as 20%, so you could consider a counter offer of £600 to £900.

pagenotfound2k

When I contact them, I will ask them to put the following into writing then:

• Full and final settlement, so that nobody else will chase me for the remainder.
• Credit report satisfied and nilled.
• To put the above into writing.

Good point about negotiating - I did ask if that is the lowest he would be prepared to offer, and he came down a couple more quid, but nothing major.

I will try my luck at 20%, 25% then £800 - I don't hold much hope out though!

DarkConvict

I would advise using the template.

It has been well used and known to work.

Mr A N Other
1 High Street,
Newtown,
Kent
R21 4RH
February 28, 2010

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

WITHOUT PREJUDICE:

Dear Sir/Madam

Re: 4563210025897412

We write with reference to the money which you are claiming on the above account.

We can confirm that we are unable to offer to pay the money which we owe in full.
However, I can raise £_____ and I want to offer this an ex-gratia payment in full and final settlement of the
account. This offer is made on the clear understanding that, if accepted, neither you nor any associate
company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be
released for any liability.

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above
account as "satisfied" in full.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of
payment.

We look forward to receiving your reply.

Yours faithfully



Mr A N Other

Just fill in your account numbers, address, the offer and add in a deadline.

Since you tried to wiggle already i would probably start at 25%, £725.

pagenotfound2k

I will phone up this week, and see what the lowest I can get is. Providing they satisfy the points in my post, I will agree to their lowest possible settlement.

DarkConvict

DCAs are known to be bullies on the phone, be careful what you say to them, they 'only' record calls that go in their favour. I would do it in writing and just await a reply, but the phone call may give you a rough idea where to aim for.

pagenotfound2k

Ok, so I spoke with them today. I was told they can mark my credit record as satisfied, but not able to nil the balance - although the record will show Barclay as settled/satisfied, they told me the £2000 outstanding balance will show but because it is satisfied and I will have a letter stating it is F&F payment, nobody can chase me for it.

Part of me says to wait for the letter, type it out on here and await an opinion. Another part of me says to wait for the letter, and just pay up.

I've been advised to ask them to reduce this to about 20-25%. But how do I go about it? I'm not too hot on excuses.

pagenotfound2k

Can anybody help? Updating this, in hope someone can.

Tixy

Hi page

Did you read that link I posted on the other thread about settlements? If not here - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Usually people find it easier to negotiate lower settlements by letter (as they cannot back you into a corner so easy - or in to agreeing to pay more).

Obviously wait for their letter to check the wording etc and you may need to come back for advice. Certainly if you have a letter saying F&F you shouldn't be chased for it, whether its worth it to you to take the offer if the debt still shows on your credit report only you know - I guess it probably depends if you are likely to need credit soon.

A 31% offer isn't bad but thats not to say you might not be able to push them a little lower by writing back with a counter offer to the letter they send you. Templates on that link but basically you would write to say something like 'thank you for your letter of x with regards to settling this debt, my relative is willing to offer a maximum of £750 but only on the condition this will clear a debt in full' (proper wording on the template but that is the argument you would use to try to get lower).

if you do use the template on the link its also worth adding in a timescale for the offer for them to accept (say 2weeks from the date you write)

pagenotfound2k

Ok, I have two letters - I think because I phone the following day. The first, dated 01/03/10 reads:

We are prepared, without prejudice, to accept £889 in full and final settlement of the debt, provided that the payment is made by 24/03/10.

The second one, dated 02/03/10:

We are prepared, without prejudice, to accept £889 in full and final settlement of the debt.

We will not actively pursue the remaining balanace. Does this mean they could forward it on to another DCA?

Your credit file will be marked as partially satisfied once the payment is received on the account. When questioned on the phone, the lady stated they could never full satisfy it as the balance wasn't fully settled.

Help!

Oneday77

You have to disregard both letters. Send the letter template Dark posted above and wait for the reply. Do not phone them again only deal by letter. I know it's tempting to call to chase things along. But look at the difference in your replies from them.

The people on here know what they are saying so please take their advice.