Full and Final offers

48k

hi Guys

I am currently on a DMP with CCCS and a family member has offered to help me clear my debts.

I have offered reduced settlements in F & F settlent to all my creditors for around 30%

My main creditor is HSBC, i have just had a conversation with them. They have offered me a settlement of 50%. this is on a loan of 15500 outstanding. Does anybody think there will be any scope to negotiate with them or will they hold out for this.

They say my account is due to be passed to metropolitan collections on october the 2nd and they may have a different view on the settlement. Any advice would be much appreciated as i dont want to miss the opportunity to settle if it will never get any better.

Assuming of course that i can borrow the extra money from my relative

Thanks for reading and i hope someone can help me

G

gabriella90

Hi i have not been in this position yet but from reading through various posts you will need it in writing and stating a couple of things -such as they will not persue the debt eg sell it on, that your credit file will be marked satisfied and something else. There are template letters on nationaldebtline website.
But golden rule on this is get it in writing do not agree over the phone. Some might say that the DCA will go lower??

Good luck

econnin

Hi there

I would go back first thing tomorrow and re-iterate your offer- say you have asked your relative for more, but they do not have it. You cannot access credit, and have no assets (I'M ASSUMING?). A lot of companies use bullying tactics - and you can point out to HSBC that passing it on to a debt collection agency wont change your situation - you still wont have any more money. Offer to provide a full financial declaration to support your offer. And yes, put it in writing (e-mail or fax tomorrow would be quicker) and that if accepted, it is a full and final settlement of your liability with regards to the loan account, and quote the loan no, and that no other party will pursue you for this debt.

I'm unsure as to how HSBC work, but if they are like other banks, they may be playing you for more money and using the threat of passing it to a debt collection agency as bullying tactics. If they genuinely cannot accept the amount, and do really intend to pass it on, you've got until 2nd oct to sort it out. Either way, I would stick to your guns for the next week and re-evaluate then. At the eleventh hour, things might change on either side.

Good luck

fatbelly

Metropolitan is just the in-house debt collection bit of HSBC, so don't let the date influence you. They will be a bit more flexible if anything.

Stick to 30% for now. There's no problem discussing this on the phone but, as others have said, you want the final confirmation in writing.

My gut feeling is that you could eventually settle at 35%

48k

H again folks,

Fatbelly what makes you think i may be able to settle at around 35%? The offer i made to every creditor was 30% but as hsbc is my largest debt im really tempted to just pay the 50% and be done with it. obviously this means i wont be able to pay one or two of my smaller debts but i think its better long term, what does everyone think?

G

LolStevo

i would hold out for a bit longer, if its still in house debt collection then they are more likely to accept less as its gone further along and their next step is to sell it on where they would get much less! x