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Old credit card debt - Been offered a big discount

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I got a letter today demanding a £1065 for an old credit card debt.

I phoned them up to offer them £50 a month or something and they said they had an offer for me of £319 to clear the whole balance.

It is with Credit Security Limited. Ive done a little bit of research and they have a company number and also seen a bit about them on google.

Are they definitely a legit company and if I send them a postal order for the full amount how will I know im not getting scammed?

thanks,
john
«13

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  • Fiddlestick
    Fiddlestick Posts: 2,339 Forumite
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    inTrouble wrote: »
    Are they definitely a legit company and if I send them a postal order for the full amount how will I know im not getting scammed?

    Why don't you call the original lender and ask them who - if anyone - they have sold the debt onto?
  • inTrouble
    inTrouble Posts: 8 Forumite
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    Calling them now.

    Just seems a bit too good to be true but I think Im going to pay it.

    I feel like im so in the dark though. The debt must be at least 5 years old, surely a CCJ or something must've been issued by now.
  • lisyloo
    lisyloo Posts: 29,642 Forumite
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    Don't just send them a postal order through the post.
    You need to make sure they do have proper title to the debt and I'd want their offer in writing stating that if I pay £319 then the £1065 is cleared.
  • euronorris
    euronorris Posts: 12,247 Forumite
    First Anniversary Name Dropper First Post PPI Party Pooper
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    lisyloo wrote: »
    Don't just send them a postal order through the post.
    You need to make sure they do have proper title to the debt and I'd want their offer in writing stating that if I pay £319 then the £1065 is cleared.

    As lisyloo says, DO NOT just send the payment!

    Check with the original lender who the debt was sold onto. As it's been a while, it's possible it has since been passed from the original DCA to another, and maybe even another since then. So you'll need to confirm with them also, that they still own the debt.

    Then, if it's established that they do own the debt, ask them to confirm the payment of 319 GBP will be accepted as full and final settlement of the debt.

    It has to say those words! Anything less and they will ask for more money afterwards. And yes, if you don't have it confirmed in writing first, you will still be obliged to pay them.
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  • inTrouble
    inTrouble Posts: 8 Forumite
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    just had it confirmed that they are genuinely dealing with the debt

    319 is amazing!

    going to do as you said and get written confirmation on the deal before i pay.
  • inTrouble
    inTrouble Posts: 8 Forumite
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    thanks for your tips, quite a good discount i feel.

    want to try and repair my battered credit rating cos at 26 I feel like I should be allowed a debit card :mad:
  • izools
    izools Posts: 7,513 Forumite
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    inTrouble wrote: »
    thanks for your tips, quite a good discount i feel.

    want to try and repair my battered credit rating cos at 26 I feel like I should be allowed a debit card :mad:

    If you're in need of a slightly more full featured current account whilst clearing up some financial messes you've made in the past there are several accounts to consider:

    Co-Operative Cashminder
    Barclays Cash Card Account
    Natwest Step Account
    Lloyds TSB Cash Account

    All four accounts are targeted towards people who have poor credit and outstanding bad debt, and all four offer full online banking facilities and VISA debit cards (not VISA electron - full VISA).

    They don't offer a chequebook or overdraft, but then again an overdraft isn't a facility you should be looking for when you're still paying off bad debt from elsewhere anyway.

    Good luck! ;)
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  • BadgerFace_2
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    Just to add to this, as I don't think anyone has said this yet...If they've come to you with an offer of £319, then that includes profit etc. for them, so I'd go back and offer maybe £200, then take it from there!
  • Toe-Jam
    Toe-Jam Posts: 1,554 Forumite
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    Do not send any payment or agree to anything yet! Chances are they are perfectly legit. However the debit is probably unclaimable and they are desperate. Firstly write to them and ask them to either prove you owe it or else leave you alone.

    here is a template

    http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/121163-prove-letter-ref-capquest.html

    If they can prove it (which they can't and don't have the necessary documents to take you to court or they wouldn't be giving such a huge reduction), then accept they settlement

    Also check if the debt is still on your credit file, if its more than 6 years old, as long as you don't make a payment they can't legally do anything its "status Barred" and its illegal for them to try and make you pay.
  • Orville
    Orville Posts: 1,900 Forumite
    First Anniversary Combo Breaker First Post PPI Party Pooper
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    Toe-Jam wrote: »
    Do not send any payment or agree to anything yet! Chances are they are perfectly legit. However the debit is probably unclaimable and they are desperate. Firstly write to them and ask them to either prove you owe it or else leave you alone.

    here is a template

    http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/121163-prove-letter-ref-capquest.html

    If they can prove it (which they can't and don't have the necessary documents to take you to court or they wouldn't be giving such a huge reduction), then accept they settlement

    Also check if the debt is still on your credit file, if its more than 6 years old, as long as you don't make a payment they can't legally do anything its "status Barred" and its illegal for them to try and make you pay.

    I agree as the op said it's a five year old debt.

    OP if you hang on for another year, maybe less it will be statue barred and you legally won't have to pay a thing..!
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