Two Debts - Maybe Reduced Final Settlement?

nearlydebtfreedave

Hi all

I've been reading around and decided to register & post, so please be patient with me if I miss out on vital detail.

Basically two debts - £2100 to Barclaycard and £660 to Moorcroft (Barclays Bank) (i've read the negative posts about these ) Both have frozen interest.

Because of being out of work due to disability and a low income (benefits) Barclaycard are being paid off at £5 per month and Moorcroft £1 per month (arranged by Citizens Advice Bureau) via standing order or direct debit (unsure which) These have been in place since around 2007.

In November of last year, Barclaycard wrote saying that this was no longer acceptable. I buried my head in the sand and have tried ignoring them and so far they have continued to accept the £5 per month with no interest with no further letters being sent.

Now, I have come into £1700 and wish to use this to pay towards the debts.

I've noticed information on here about reduced Full and Final settlements and CCA's.

Is there

1. Any point asking these companies for CCA's
2. Any hope that either of these would settle a reduced settlement? Say a £1300/£400 split?

Thanks for any advice anyone can offer

Just to add - Defaults were made, but only before the standing order/direct debits were set up around 3 years ago.

Deep_In_Debt

Yep, no harm in CCA'ing as if it's invalid then you will probably have more of a chance of making a lower settlement.

I'd start low...30% and take it from there.

National Debtline website has a good template letter you can use. Make sure you do all of this in writing and ask that they mark your credit file as "satisfied" and that neither they nor any associate or 3rd party will chase you for the remainder of the debt in the future and that you are released from any further liability.

Generally you will get a better deal if your debts have been sold to DCA's as they buy the debts for pennies in the £ whereas the original creditors will usually accept 70% - however, no harm in starting low.

Good luck.

nearlydebtfreedave

Thank you for responding.

As I understand I need to send a £1 cheque for a CCA request?

I've spotted the template letter from National Debtline and will use that and will make sure that any agreement is in writing before any money is sent to them in settlement.

I shall start low and take it from there. Is their a danger that if they think I have money to pay off a chunk, they will demand full payment?

Locke

Use the templates in here > https://forums.moneysavingexpert.com/discussion/2305463

There are plenty of people in there doing the same thing if you need any help or advice.:)

nearlydebtfreedave

Thanks for pointing that out Locke. Looks a useful thread. Much appreciated