Lloyds tsb loan they have offered me reduced settlement.. what do i do? help!

msjoanne

I have received a letter completely out the blue from Loyds TSB saying if I pay £4000 within the next 28 days they will accept this as a full and final settlement for my loan which has a balance of £4983.

I have been paying back £45 a month for the past 3 years instead of £201 which Lloyds agreed to.

I can borrow £1600 of my sister but that is the maximum, do you think it is realistic to offer them a counter-offer for that amount?

pls reply

jo

Tixy

If they debt is still owned by Lloyds I would think its very unlikely they would accept such a low full & final settlement. That is unless they know they debt is unenforceable.

This might be an offer to you prior to them selling on the debt (for less than £4k).

If this loan was taken out before April 2007 and if you already have a default on this debt (which I would guess you do) you could consider looking at the enforceability of the debts. If they proved to be unenforceable then yes £1600 would be likely to be accepted (or you might decide not to pay at all)

DarkConvict

unenforceability topic - http://forums.moneysavingexpert.com/showthread.html?t=2305463

fatbelly

msjoanne wrote: »

I can borrow £1600 of my sister but that is the maximum, do you think it is realistic to offer them a counter-offer for that amount?

jo

Hi jo

I don't recommend borrowing money to do F&Fs - but I have known LTSB to settle at 30%.

di3004

Just a thought, but is there insurance still included within the loan balance?

If it is and its worthless to you, then you can try making a reclaim on this, this would then of course reduce the balance, depending if PPI was added or not and the amounts, you may be surprised.

Thought I should mention this just in case.;)

msjoanne

hi thanks for your message.

i did phone them about a month ago asking for a copy of my loan agreement. they sent it and it looks ok. i took the loan out dec 2002.

i did notice on the agreement it does not state anywhere how much i will be paying back including interest, it just says £10,000 over 60 months apr 7.9%. is this an unenforcable debt?

strangely enough, 2 yrs ago i requested my loan agreement and they sent me it and a month later they sent me a letter offering to reduce the loan if i paid within 28 days.

do you think this is a coincedience? what should my next step be?

thank u so much for helping me with this, totally stuck as don't understand all of this

jo x

msjoanne

hi no there is no insurance on the loan, thank u for msg tho