Loan dilemma

dannynixon

This is for a friend and she would like some advice.

My friend bought a house a few years ago and split up with her partner in 2006. Between them they lost the house and ended up 26k in debt. Her ex hasn't paid a penny to Northern Rock and for the last few years, my friend has paid £50 a month to Northern Rock. In January this year, her card expired and she never gave Northern Rock the new details. They have now passed this to the debt recovery team. She has phoned them and they have set up the £50 monthly payment. They said she could settle for 4k and this is the email they sent.

REDUCED SETTLEMENT OFFER



We can confirm that our client will accept£4,000.00 as a full and final payment with regards to the above debt. Please note that this is a Time Barred offer. If payment is not received by noon on the last working day of this month, then this settlement figure may be revoked and no such offer will be made again.



Our client would prefer an amicable settlement, however, should the settlement amount not be paid by the specified date, we will have no alternative but to take the matter further.

They said over the phone if she paid the settlement, they would just continue to chase her ex and she would be free from the debt. They said she would no longer be financially tied to her ex with this debt. How true is this?

I really would appreciate some honest advice. Thanks

[Deleted User]

how much is still outstanding?can she afford the £4k,if she can i`d offer £3k if i were her see what they say
if she goes for a "full and final"make sure they put everything in black and white

Tixy

I would suggest she gets written confirmation from them first that her credit file will be updated to show that the loan is satisfied (or partially settled). If the account was shown as being settled and they have no other joint accounts or debt then she could financially disassociate herself from ex with the 3 credit reference agencies. This factsheet has some useful tips/wording for a letter - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers and this letter specifically for mortgage shortfalls http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls#slm3

If the loan is marked as settled I would imagine it would have to be done so on both their credit files (which should have identical entries on them for a joint debt) so that doesn't seem to tie with that they will carry on chasing him.

CHR15

I would be cautious that they write the above statement in the letter but choose to say over the phone

if she paid the settlement, they would just continue to chase her ex and she would be free from the debt. They said she would no longer be financially tied to her ex with this debt.

Wonder why they didn't include that bit in the letter (or am I simply sceptical??)

Make sure EVERYTHING is in writing, ignore the phone advice in the same manner they will ignore it later on when you start complaining about them not living up to their end of the bargain.

In wirting - nothing else will do...