Struggling with Settlement Offers

hsj2011

I could really do with some advice.

I have had a number of debts over the years but I've just got hold of my credit file to try and sort them out and most of them have dropped off because they had gone past 6 years old.

However, I have 2 debts on there (one from March 2006 and one from October 2006). The first one used to be owned by Orange but has been sold to Arrow Global and the second one is still owned by Orange.

They are both with DCA's. The first is with Mackenzie Hall and the second is with NCO.

I've just phoned Mackenzie Hall to notify them of my new address and they told me the current balance of my debt is £345.07 and asked if I could pay it today. I said I couldn't but that I might be in a position to make a full and final settlement payment and they told me that the absolute lowest they could go is £258.80.

Now, I understand that their offer will shave £86.27 off the debt but that's only a 25% reduction and I've read stories on here of people getting 60% plus shaved off their debts.

I've asked them to send me a letter with the full and final settlement offer stated but I did not commit to paying it. I said I would try to beg and borrow the money but didn't say I would definately have the money.

Can anyone please offer any suggestions on how to get a lower full and final settlement figure?

Thanks

cif85

Hello there,
I am new to posting on this site, but I have dealt with Mackenzie Hall before twice, and both times I arranged a F&F settlement with them.

I was lucky as a family member offered me the cash to settle with them, so I was just glad that I got some kind of reduction (I think I got 40-50% off). I sent them an offer (in writing) which they declined and then counter-offered; I followed that with another offer explicitly saying this was the maximum I could afford and if they declined I would just carry on with monthly repayments of x amount - they then accepted my offer. This happened with both debts. I also made it clear that the money had a finite time limit as if they didn't accept, it would go on other debts. Hold your nerve with them - their 'time limited offers' are absolute rubbish.

I used a template letter I found on this site (I think just search it in the forum search function) which was really handy and did the job.

Hope that helps - I'm sure there will be much more experienced posters along soon to help.

Tixy

Hi

Best way is for you to make them a settlement offer not ask them for one. Send them a letter with an amount you can afford and see what they say.
If then don't accept then either increase your offer a little or set up low repayments to them and try again in a few months.

Have a read of this factsheet and template letter - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers . As cif suggests I would also add in to the letter that the settlement offer is only available until X date (maybe given them 3weeks) and will then be offered to a different creditor.