What Now What Next Where To

emjel

Just had my offer of £7k Full and Final Settlement against an early settlement figure £9.3k turned down by HFC. Even though I said in my letter that I could no longer afford the £400 pm and that one third of the offer ie £2400 was being paid by a friend on the basis that it was used as part of a F & FF, they still suggested I put the £6.9k to paying off a chunk of the loan. All that will do is reduce the actual balance from £15k down to £8k.

Any suggestions on the next step. Thanks

jonesMUFCforever

What can you afford per month?
Write a letter advising them of this figure - if they accept then it will be ok as long as you stick to it although it will take years longer to pay.
If not contact CAB or National debt helpline for advice.
IMO It is not a good idea to borrow from a friend to pay your debts as it is a sure way to lose that friend when you fail to repay him/her.

emjel

The situation is that I cannot at this moment afford anything that is reasonable. I just want to get rid of this debt. We're talking about a difference of £2k here. The loan was £12k plus PPI £4.5k plus int over 7 yrs making a total of £32k. I've already paid £18k in 40 months and there's the £7k on offer making £25k they will have had. Through the Rule 78 rebate system, they are offsetting £5k, so they stand to lose £2k. They're also getting £2.25k from advanced PPP as it will get cancelled within 50% of term time, so they don't even run the risk of having to pay out anything. The whole thing is a rip off. To make matters worse, when I asked about cancelling PPP 2 years ago, I was told "no can do unless you take another loan". My intention before the redundancy was to pay off the loan within 10 months of that request so another loan did not seem a viable option. Although I was never out of work, my income dropped, hence the problems. But in this past week, I have found in the small print that I could have cancelled, so the rep was just making it awkward. Maybe I'll just see them in court.

jonesMUFCforever

As I see it then there are 2 different points here.
Firstly there is the sale of the PPI and your request to cancel it - have you invoked the company's complaints procedure and do you have any evidence of what was said about this from 2 years ago.
Secondly there is the problem of the outstanding capital balance - they do not have to accept a final settlement figure from you unless it clears what is owed so the obvious way to get rid of it is to pay this figure.I repeat that borrowing from a friend does not get rid of your borrowing just juggles it around and IMO getting hassle from a mate about repayment of a loan would be much more stressful than getting letters from a faceless person at HFC.
Why not go the Debt Free Wannabee board for tips to cut your outgoings which might make the repayments easier.

As a final thought is your credit worthiness ok? could you get a loan from your bank for £4700 to go with the £4600 you have to pay this off.
Estimated cost of a loan for this for 5 years would be around £102 per month