Letter from NCO/Arrow - advice please?

concerned123456

Hello

I have received a letter from NCO, based in Preston, claiming to be acting on behalf of Arrow Global to recover a debt of just over £2000.

I know that this relates to a bank overdraft on which I defaulted initially in 2004, but which I made my last payment on in 2007. I have since moved house several times and haven't been contacted in the meantime.

The letter provides a phone number and offers "to offer (you) an opportunity to finalise this matter by way of a greatly reduced settlement payment."

A couple of things - firstly the debt is made up at least 50% by way of unfair charges, so I am not prepared to pay anywhere close to the full amount. The debt has been sold by the bank, which I know from my credit file.

Secondly, I have spent many years repaying debts, my credit rating is already destroyed. I finally finish paying everything else off in a few months from now, so could potentially afford to pay part of this but don't have much of my monthly income to spare at all.

I'm inclined to think that I need to get this sorted once and for all, and that NCO will now hound me until I do. I think I could raise approx 25% as a one-off payment next month, by borrowing from family. Does anyone have any advice on how I can handle this, or whether this kind of offer has any chance of being successful?

Thanks

FTW

concerned123456 wrote: »

Hello

I have received a letter from NCO, based in Preston, claiming to be acting on behalf of Arrow Global to recover a debt of just over £2000.

I know that this relates to a bank overdraft on which I defaulted initially in 2004, but which I made my last payment on in 2007. I have since moved house several times and haven't been contacted in the meantime.

The letter provides a phone number and offers "to offer (you) an opportunity to finalise this matter by way of a greatly reduced settlement payment."

A couple of things - firstly the debt is made up at least 50% by way of unfair charges, so I am not prepared to pay anywhere close to the full amount. The debt has been sold by the bank, which I know from my credit file.

Secondly, I have spent many years repaying debts, my credit rating is already destroyed. I finally finish paying everything else off in a few months from now, so could potentially afford to pay part of this but don't have much of my monthly income to spare at all.

I'm inclined to think that I need to get this sorted once and for all, and that NCO will now hound me until I do. I think I could raise approx 25% as a one-off payment next month, by borrowing from family. Does anyone have any advice on how I can handle this, or whether this kind of offer has any chance of being successful?

Thanks

If paying's going to leave you short, then don't.

Besides, if 50% of this one consists of charges, then I'd be stating that I'd pay only on two conditions -

1) On the understanding that no further contact will be received by any other company after payment has been made.

2) That whatever percentage 'reduction' is offered, that percentage will apply to the balance AFTER the unlawful charges have been removed. The charges cannot be legally enforced, and therefore, are not part of the debt.

But, this is all academic until NCO specify this 'offer' in writing. If they don't, ignore all contact from them.

They're trying to badger you into phoning them - and DCAs should never be phoned. And nor should any letters sent to them be signed.

concerned123456

FTW - thanks ever so much for the reply. The advice that people give in this forum is so supportive and helpful.

I don't mind admitting that this debt needs resolving. It is only because I have moved house so often (not to avoid debts before anyone asks!) that this contact hasn't arrived sooner. But I'm now settled with a partner, and my main concern now is that she doesn't suffer in any way from my past mistakes.

So ideally I want to reach a solution to this, and experience with other DCA's is that ignoring them doesn't generally work. At the same time, I'm fully aware that this letter is essentially a hook to get me to contact them.

I've compiled a letter now (not signed, and marked 'without prejudice) which basically does as you suggest - it outlines the reasons which a) I can't afford to pay the full amount and b) I dispute the debt. I have used the templates on F&FS to basically say that IF they can prove they own the debt and that it relates to this bank account, I MIGHT be willing to offer a one-off sum as payment.

Do you (or anyone else) think this is a good idea, or am I basically opening myself up to them to chase me for the full amount? Would it be incredibly naiive to think that this offer of a 'greatly reduced settlement' is an opportunity for me to set the ball rolling in negotiating?

If it is a sensible plan, what kind of settlement should I be offering, bearing in mind it is such an old debt and has been sold on at least twice to my knowledge?

Thanks again for your reply, and I'd welcome anything more anyone can offer.

FTW

I'd wait for the moment to see what else they have to say. From what you say in your first post, it sounds like they're just trying to get you to make contact with them.

If they have a settlement offer, let them state what it is in writing before doing anything else.

If they phone in the meantime, refuse to clear 'data protection' with them, and if the call does go any further, state that you're only willing to deal with this in writing and hang up - there's nothing they have to say in a call which they can't say in a letter.