Update, questions re debts and f+f

Need_To_Sort_It

Hello everyone,

I haven't been here for a while so I hope everyone is well and ready for me to pick their brains - again ! lol

For those who were around when I posted here in a state of sheer panic back in Dec 2007, I'll give you a very quick update. Loads has happened but in short . .

Income - low, fully dependant on benefits :-(

Health - up and down like a fiddlers elbow. Couldnt finish one of my courses hence no work and stuck on benefits.

Creditors - All taking £1 token payments but quite a few have sold on and some of them are like sharks, ringing me from 8am til 10pm (Advantis, just so you know). My CPN was here one day and told them to back off and they didnt care! I had the phone number changed again.

I still pay off £37000 of debt at the rate of £1 per month to each creditor, I showed each new debt collector that I couldnt pay anymore so the £1 stayed.

About Oct last year following one disaster after another, I had had enough and took the decision to sell the house. A social worker took me to the housing dept and basically they would not deem me as intentionally homeless if I sold given my situation.

The house has sold, I exchange next week and I wont have enough to pay everyone in full but I will have some money.

I will, once I have the money offer F+F settlement amounts to everyone.

My credit file shows some of the debt collectors who are managing my debts but not all of them. EG. I pay Wescot for my Ikano card, but Wesoct doesn't show up, only Ikano, last updated april 2009. I am wondering why everyone is not on there?

I have 2 catalogue debts, neither have CCAs

I wont have the full amounts and I would like if I can to have a few pounds to sort my new house. A council house is unlikely to be carpeted and will need a lick of paint etc My debts come first, they need to go cos I cant stand the strain of them so furniture etc will be a 'nice to have' not a 'need to have'.

All of my creditors have been on reduced payments since Sept 2006 and since Dec 07 they have all had just £1 a month each. So just over 3 1/2 years in total.

My biggest creditor is Halifax (with Blair Oliver Scott) at £23000. The remaining £14k is shared between 12 people ranging between £5000 and £150.

So, (yayyyy, she finally gets to the questions) -

How do I proceed in offering full and final settlements?
Can my creditors find out how much I have left from the sale of my house?
How long after my mortgage is redeemed will it show on my credit file?


Any advice would be greatly appreciated :-)

DarkConvict

A creditor probably can find out how much you have left been that the mortgage shows up on the credit file (or so i think) and the house sale price is available at the land registry. Its is free to check house price sales online. So one minus the other gives the surplus then you can guess any fees that had to be paid.

None the less, you do not have to tell creditors where the funds have come from.

For F&F offers it is recommended to
1) Use the national debtline template as the basic letter
2) Add in a 14 day reply deadline before offer is withdrawn (limited time offer)
3) Mention funds are from a family member/3rd party so they do not just ask you to pay more per month and think you are personally holding out on them.
4) If they fail to reply you assume they are declining and the money will be offered to other creditors in a similar offer.

Given the length and payment history they will likely be accepting in the range of 20-50% for settlement of the debts, but what they do accept is down to so many factors you cannot really guess, just offer and see what is made. Remember if they do bite but want a higher figure, do a counter offer.

Need_To_Sort_It

Thanks Darkconvict, much appreciated.

So it would be wise to get these letters out as soon as I exchange contracts.

If I tell them that the offer will be withdrawn after 14 days and they dont reply, would it not be a bit suspect if I then go back and say I will up my offer?

My mum offered me her £1000 overdraft a while ago to get rid of the biggy debt £23k but naturally they refused. It was a compete stab in the dark cos she saw the update letter and panicked.

I was thinking of offering them all 40% of the debt, that would be amazing for me!.

Thanks again for your help

GeorgeUK

If the debts are with DCA's, i would start at the lower end of the scale. I usually advise between 25%-50% if with a DCA, but as you are only paying £1 per month, i think you should start between 15%-40%. Have you been making payments to the debts that don't have CCA's? Have you checked all the CCA's?

I wouldn't make any offers at all until you have the money in the bank.
You have a safe bank account, don't you? None of your creditors would be able to offset a debt and take money from it?

Don't forget you need THEIR letter to agree that the payment is F&F. Partial/short settlement is not what you want.

Need_To_Sort_It

Hiya George, thanks for that. Ok, I will wait until completion. I dont think I owe the company I bank with any money. Is the NatWest and Co-op owned by anyone else?

Yes I have been paying the debts that dont have a CCA, I did so because I dont dispute I owe them. However, the way NDR have treated me make me feel like not giving them anything lol

Need_To_Sort_It

Also, I havent checked the other CCAs, they have been produced though.

NorthernLas

Hi - I can appreciate that you may not dispute that you owe the debt.

However, are you aware that the debt may have been bought for much less that the balance remaining?

It would be useful to check the other CCAs because if they are not enforceable, you may get the DCA to agree to a much lower F&F.

If you start with a low offer and then have to negotiate, I don't think this matters. You could have offered F&F to a few companies and if one refuses you could use that amount to up the offer to another one. Just 'cos this is not your situation, so what?

Co-op are associated with Britannia, not sure about Nat West. I think there is an article (prob in the banking section) that tells you what companies are associated togethsr.

GeorgeUK

Probably worth checking if the CCA's are enforcable - if you put that little gem in the F&F letter then the only reason i can see for them to turn you down is that they don't know how to do their job properly.

I think Natwest and Co-op are okay for offsetting. Will double check this though.

DarkConvict

List of banking groups - https://forums.moneysavingexpert.com/discussion/2044049

I do agree to go in low, 20-30% is what i would start with.

Its fine to withdraw your offer, its all part of negotiation. It could simply be another creditor also declined 30% so your willing to lump some settlement money together to up it from 30 to 40% just for this debt.

I do totally agree, if you add in that you have checked the CCA and it is not enforceable, therefore the debt cannot be enforced by court action. They are more likely to accept because they know if you decide to stop paying on day there is nothing they can do to get any money out of you.

Need_To_Sort_It

It would seem that natwest and bank of Scotland are linked, but it doesnt say halifax and natwest are. So to be on the safe side, I should use the Co-op.

Regarding CCAs (I posted this last night but it got lost, my meds confuse me). I had them but dont have them anymore. I was quite ill at the time however I know the 2 catalogues didnt have one and I know that the Halifax had one. I remeber having others but dont know from who.

Should I be asking everyone for them again to check what's in them? Who do I contact to get them because for some I dont even know which DCA is for which debt anymore? I cancelled the standing orders so that they write to me asking for money then i will know who is for what, but that's going to take a bit of time i guess.

DarkConvict

Your post has not been put up, your last topic was - https://forums.moneysavingexpert.com/discussion/2198751

You need to know which DCA and which debt in order to get the CCA, as you need some king of reference number and obviously send it to the right people.