payplan ...final settlement...advice please!

Laubel

I am currently on a dmp with payplan, which started at around £20000 and is now (according to them) £7,700. I think in reality the outstanding debt is more than this as not all of the creditors froze the interest.

I may have the opportunity to offer a full and final settlement but have read that it may be better to do this myself and not via payplan.

Has anyone had any experience of going through the process with payplan? if so what percentage of the final debt did you offer?

thank you

Numpty_Monkey

You do need to do this yourself, and with the creditors
do it writing with the letter from National Debline
http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6
"Full and final settlement letter"
make sure you say the funds are from friends or family;)


as for what to offer a bit of a rough guide
http://forums.moneysavingexpert.com/showpost.php?p=31089645&postcount=7

Laubel

Thanks for replying!

am i likely to get a better result by doing it myself do you think. I am just a bit unsure of what would happen if some creditors refused ...would I continue to pay them via the dmp.

would I need to inform payplan of what I was intending to do?

Sorry, lots of questions!

Thanks again

Numpty_Monkey

If they don't accept,
then just keep paying into your DMP, and in 3 months time offer again at a reduced rate;)
make sure you give them a time period to accept 14 days 21 days
it is a bit of negotation:o
When I was doing my DMP with CCCS I let them know before hand that I was offering an F&F to 1 creditor and they were ok, and just said letsus know if its succesfull

If I did it now I would let them know after the offer was accepted

yellowpinky

Hi Laubel, I'm in the process of offering F & F's to two or hopefully three creditors, while on a DMP with Payplan. I told PP what I was doing at the beginning and they offered the services of their own settlements team to do the negotiating but I read here it's better to do this yourself as you can get a better deal directly. I asked PP if there would be a chance of doing this myself and they said fine, just keep us informed. Like Numpty Monkey, if I knew what I know now I probably wouldn't have said anything to them until it was all finished either, it would'nt have made any difference really whether they know in advance or not.


Good luck with whatever you decide to do.

Pott5y

I am in a very similar situation on a Payplan DMP, though I have had to write about 9 F&F letters to creditors offering 40% of debts arond £50k.

Payplan were fine and just said that I must keep them informed if any accept my offer so they can adjust the DMP as necesasary.

I had a great feeling writing the letter and the worst bit is waiting for the replies. I have so far had 1 accept, 1 try to negotiate and the rest declining. Just remember that the declining letters are quite often just standard letters and they can seem a bit harsh.

I have spoken to National Debt line on this also and their advice on the declined letters was this:

The best thing to do is not to go straight in with a higher offer but write back saying that as they have declined your offer you will continue with your agread DMP payments.

Leave it a month and write to them again again offering the same amount as quite often the are playing to see if you will offer more.

If still no joy then perhaps leave it another month or so and then go in with a slightly higher offer.

Good luck we will all get there in the end!!;)

Laubel

Thanks everybody for your replies! I feel a bit more confident in trying to deal with it now!

So glad I came across this site!