F&F offer on bank loan - advice please!

liberty_lily

Hi there,

My OH took out a loan with LTSB in 2004. He made continuous repayments for approximately 3 and a half years ('twas a 7 year term) before falling into financial problems. Since then despite our best efforts payments became sporadic, then were totally unaffordable. For the last 2 years approx no payments have been made, but we managed to somehow keep them at bay whilst OH was reclaiming mis-sold PPI - although they did farm it out to various DCAs.

Now after nearly 2 years of waiting they have finally repaid the PPI to OH and we would like to try to clear this by making a F&F offer.

Coincidentally, having received no previous discount offers on this loan the latest DCA has just offered a huge 70% reduction which sounds almost too good to be true - the only problem is their letter arrived on a friday and only allowed until the sunday to respond

What, if any advice can anyone offer please as to how OH should deal with this situation?

Thanks in advance,

LL x

Hannah_10

They give you such a short time because they don't want you to think about it and they don't want you to check out that you're not being had. How they can do you over is to leave out bits of the correct wording so that you think you've settled it for good, but actually you have just made a big payment and they later get a DCA persue you for the rest.

if they will take 30%, then offer them 25%. It's a big test of nerves with them. Keep everything in writing, use the F&F template at National Debtline and be sure to do everything in writing and use safe payment methods.

Template letter can be found from here http://www.nationaldebtline.co.uk/
More about your safety https://forums.moneysavingexpert.com/discussion/2719675

liberty_lily

Hi Hannah,

Thanks for your helpful reply

Yep, I have a bulging file with F&F notes in so would definitely make sure I used all the correct wording, kept it in writing and didn't agree to anything they hadn't confirmed in writing themselves!

I was also thinking along the lines of going in with a slightly lower offer as you suggest.

Makes you wonder whether this agreement is ok for them to be prepared to accept only 30% of the outstanding balance - mind you OH has repaid over two thirds of the original amount borrowed, not taking interest into account of course. However I s'pose that even back in 2004 LTSB got their agreements correct

Will follow your advice and see how I get on!

LL x

Hannah_10

However I s'pose that even back in 2004 LTSB got their agreements correct

That's a guess, it's probably a guess based on trust too. I wouldn't put too much faith in a guess. If you want to find out for real then you have every right to request the CCA.

liberty_lily

Hi Hannah,

Thanks for your continued help!

I did request the CCA about a year ago.........I can post it up minus identifying details if it would be any use?

I was assuming from what I'd read across various forums that Lloyds agreements tend to be ok - but maybe not!

LL x

liberty_lily

Hi everyone.

Just a further update on this -

I went ahead and made a counter offer of 25% ten days ago (sent by next delivery) and as yet have received no reply. I followed Hannah's advice and used the wording recommended by National Debtline.

Will let you know if/when there is any news...........

LL x

hippychick1

Hi

I had a loan with LTSB, taken out around 2005. I've been in a DMP for about three years now. The loan got passed to a DCA and I made a full and final offer of £4750, on an outstanding loan of £13800. They refused this and asked me to increase my offer. I offered £5100, 37% of the total, and it was accepted :j:j:j I requested that they put in writing it was a full and final settlement, and I could not be chased for the remaining money. What a weight off my shoulders!!!

I think it took the DCA a while to get back to me after my first offer, possibly 3-4 weeks. I didn't think they were going to reply. Good luck!!!

liberty_lily

Hi Hippychick

Thanks for sharing your experience - it's good to hear that LTSB do accept F&Fs - very well done to you for your success :T

I've still not heard anything back, but based upon your experience it could be some time before they get back to me - they obviously aren't going to stick to my deadlines!

Will post up as soon as there's any news.......

LL x

liberty_lily

Just an update on this -

Having received the 70% settlement offer from the DCA collecting OH's loan on behalf of LTSB on the friday which only allowed till the sunday to accept/pay, I wrote back respectfully requesting more time to consider.

There was no reply to this from the DCA.

I kept to my word of getting back to them in writing within 7 days and made a counter-offer of 25% which I said was only available till the middle of October as we had other equally pressing creditors to consider - which we do.

There was no reply to this from the DCA.

I sent a third letter repeating my offer and saying if they were unable to accept OH would have to utilise the money for repaying another creditor and would instead have to make token monthly repayments.

This crossed in the post with a letter from the DCA acknowledging OH's 'recent correspondence' and saying they were investigating the matter, which they would resolve as quickly as possible. It was worded as though referring to a complaint rather than an offer to make a F&F settlement - indeed there was no reference to settling the account at all in their letter.

Since then (nearly three weeks ago) there has been no further word from thew DCA/LTSB.

As 5 weeks had passed from the receipt of the DCA's original letter offering the 70% reduction, this week we decided (perhaps stupidly) to send them the first token monthly repayment to focus their mind towards accepting our counter-offer.

Do you think we did the wrong thing here and should we now just sit tight and see what happens next?

As we are now in a position to increase our offer slightly (as well as to repay some other creditors) is sitting tight and waiting for a response still the best course of action please?

Many thanks,

LL x

liberty_lily

Apologies for 'bumping' so soon, but can anyone offer advice on the queries in my last post please?

Many thanks

LL x

liberty_lily

liberty_lily wrote: »

Just an update on this -

Having received the 70% settlement offer from the DCA collecting OH's loan on behalf of LTSB on the friday which only allowed till the sunday to accept/pay, I wrote back respectfully requesting more time to consider.

There was no reply to this from the DCA.

I kept to my word of getting back to them in writing within 7 days and made a counter-offer of 25% which I said was only available till the middle of October as we had other equally pressing creditors to consider - which we do.

There was no reply to this from the DCA.

I sent a third letter repeating my offer and saying if they were unable to accept OH would have to utilise the money for repaying another creditor and would instead have to make token monthly repayments.

This crossed in the post with a letter from the DCA acknowledging OH's 'recent correspondence' and saying they were investigating the matter, which they would resolve as quickly as possible. It was worded as though referring to a complaint rather than an offer to make a F&F settlement - indeed there was no reference to settling the account at all in their letter.

Since then (nearly three weeks ago) there has been no further word from thew DCA/LTSB.

As 5 weeks had passed from the receipt of the DCA's original letter offering the 70% reduction, this week we decided (perhaps stupidly) to send them the first token monthly repayment to focus their mind towards accepting our counter-offer.

Do you think we did the wrong thing here and should we now just sit tight and see what happens next?

As we are now in a position to increase our offer slightly (as well as to repay some other creditors) is sitting tight and waiting for a response still the best course of action please?

Many thanks,

LL x

Bump............