advice on paying debt collectors

shoppa_2

Hi there everyone,

I did start this on another thread but need some replies asap!

As mentioned previously, my boyf has a debt with Barclaycard that has been handed over to Debt Managers Ltd for a reduced sum... he is keen to accept. (he has also told me that another company has been in touch today by post about it which is slightly confusing!) Ive never had personal experience of this so dont have a clue of what his next steps should be.

I understand he needs to get the offer in a proper letter with the terms etc, but have a few qs....
1) how should he contact the debt collectors - in writing?
2) which one should he contact now - the latest collector?
3) what should we be looking out for in the terms they offer and how do we know it is legit - ie in a couple of months he wont be pestered by someone else for it - do they need to supply some sort of document to him? (they quote his card number so it must be his debt and he knows he has a defaulted debt with them)
4) will this be the end of the debt for good if he can get a reduced settlement and what happens to his credit rating if it is settled?

any one got any advice/first hand experience of this?

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bottleofred

Hi Shoppa and welcome to the forum,

Always contact DCAs in writing, but I'm not sure which one he should contact to be honest!
He should wait until all offers are received in writing from the DCA with the wording "as full and final settlement" regarding the actual settlement!
As a rule of thumb and this depends greatly how long the debt has been outstanding for, I would offer no more than 40% initially as full and final settlement of the debt! They may come back with a counteroffer, but he can then counteroffer again, but always in writing!
As long as he gets it in writing that its as full and final settlement of the debt and keeps the letter for 6 years, no other DCA should be able to come after him for any remaining money.

Good luck