Being offered huge discount to settle!

RC_46

Hi all. I have an outstanding amount from an old graduate loan - it's currently at the £8k ish mark. I have been paying diligently £100 for a couple of years, and have recently been getting letters offering me discounts to settle. The most they ever offered me was 50% - which was fab - but there was no way on earth I could get my hands on that kind of money. I thought about taking out a loan, but then thought that was silly as it's robbing Peter to pay Paul!

I now have a letter from them asking me when I would like to settle and how much. They state they will negotiate with me. But let's say they are willing to take £4k again, I still haven't got access to that amount, and can't afford any more than I am currently paying (£100 pm).

Does anybody have any suggestions or bright ideas?! I would love to get this settled as it's being going on for ages and will go on for ages and ages again at this rate! They seem to want to end it and appear to be open to offers, so I will try my best to get rid of it asap. Any help/suggestions most appreciated

rizel23

start at 20% and let them go up, not sure if student loans came under CCA 74 if so request the original agreement for the loan from them, read over more here;

http://www.consumeractiongroup.co.uk/forum/

http://www.insolvencyhelpline.co.uk/debt_factsheets/full_and_final_settlement_offers.php

RC_46

Thanks Rizel. Sorry, should have said it was a graduate bank loan and not from the student loans company.

DarkConvict

Its not a student loans, its a graduate loan from a high street bank, available when you finish university.

If you can't afford it, then sadly you can't offer it. Have a look around what can you get together even if it is a loan from family. Also get the offer in writing to ensure it is a full and final and they wont chase the 4k at a later date.

rizel23

When was it taken out? If pre 2004 i would defiantly CCA the company who are dealing with your repayment as i presume its been sold on to a debt management company and no longer with original creditor?

Here is the CCA request letter (N)

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

if it comes back unenforceable and you point this out clearly (backed up by legislation)they will probably gladly accept 20% offer otherwise they could end up with nothing

RC_46

I graduated in 1998 - so would have been around then, definately by 2000. Yes, it's with a company called 1st Credit, Lloyds sold it on a long time ago. I'll take a look at that letter now as I have no idea what CCA'ing is!!

rizel23

a little reading could save you upto 8K being that old now.

If they have no Credit Agreement or there are faults in the agreement it can not be enforced by law in the courts, it doesn't go away it just becomes unenforceable by law.

Its not without its downfalls, if the loan is unenforceable and you do stop paying it will effect your credit file as they will issue a default, all that can be challenged but you need to beware. That and the debt would then come off your credit file 6 years after last payment made and 'status barred'

Sent the DCA (Debt Collection Agency) the template letter above (letter N), DO NOT SIGN the letter, they have been know to lift signatures, if they insist on a signature (which they often do to delay or put you off pursuing) print your name or sign letter with a signature that is different from your usual one & place a line through it and make a copy before posting ect. You also need to pay £1 for a CCA (Credit Agreement) which i suggest you pay for via postal order & not a cheque, also always sent Recorded Proof of postage as can prove delivery at later date if needed.

rizel23

read more in depth over at these forums, some top notch people who can help you out in more detail, having access to a scanner and basic paintshop (for editing letter replies) will also be useful to get greater response:

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/

RC_46

Thanks Rizel - I'll have a good scan through them and see what I can sort out. I have never looked into it before as, to be honest, I owe the money and didn't see why I should shirk my responsibility. But if they're willing to come to a mutual agreement to reduce the amount then I am up for that! Thanks again.

rizel23

If it does turn out to become unenforceable & you point why & show your in the know and feel you have a moral obligation to pay back it will give you a far greater negotiating position for a settlement offer.

I had this with some of my debts & was intending to pay back fair offers, but the attitude of the lenders was disgusting, trying to worm there way out of any situations, constant lies, my moral position changed significantly. Good luck, let us all know how you get on!

RC_46

Have decided not to go down this road. I applied for a £2k loan through my bank so I could offer them that, but got turned down. I was looking at £2k over 2 years, as I could afford the repayments and it would be done and dusted far sooner. If I do ask for a CCA etc then I may still have to find a lump sum to settle, and it doesn't look like I can get this from anywhere. I refuse to ask family for money, I am a grown up and and am responsible for myself!!! I have a good job with a decent salary, a mortgage etc, I just can't find a lump sum or any more spare cash than £100 pm - so its tough, I just have to live with it. So it looks like I will continue to pay them £100 for the next 6 years I wonder if I can ask them to half the amount then still let me pay £100 pm?!!:cool: Worth a go do you reckon?!! Thanks for all the advice by the way.