DCA 50% reduction on debt, what to do?

fuzzgun19

Hubby had an overdraft debt. We were struggling, so sent them a DMP letter.

It was passed to 'EquiDebt' DCA last month.

We have received this letter, but at the same time are at the end stages of claining back bank charges on this Abbey account.

My dilema is, It says on the letter 'THIS OFFER ONLY VALID FOR THE NEXT 5 DAYS'

Would they wait longer than 5 days? I think I could raise the money, but it will take 2-3 weeks (i'm waiting for a cheque from Abbey in Bank charges refund that would cover this)

I cant see a DCA saying they will wait for me...

Do you think I could stall them by emailing saying i'm willing to pay the 50% and I will send a cheque?

Is this normal for a DCA to offer 50% reduction?

debt23

Hi,

Yes, the offer of a reduced payment is normal - and getting 50% written off is a good result.

In fact, given that they have come straight in at 50%, you could possibly push them even lower!

But assuming you are happy with this offer, then let them know but that you cannot take advantage of it at this stage.

They may or may not agree to wait - but whatever they say is pretty much irrelevant, once you are ready to settle, offer to do so but at no more than 50%. Now they have out this value on the table, they will take it.

If you do get the money to settle this at 50%, post back here again before you do, as there are some steps to keep in mind when settleing a debt with a 'full and final payment' - but not worth going into at this stage.

All the best

debt23

fuzzgun19

Thanks Debt23.

If I was to email/write to them and offer 40%, what do you think the chances are they will take it?

Is there a template letter anywhere I can use?

debt23

Hi,

Well, first off, if you dont ask, you dont get.

But......

If you do go for making an offer, you need to be able to pay the money straight away - they wont want to wait and it helps your negotiation if you can say, ill pay you X amount, if you accept, you can have the cheque ASAP.

Now - warnings. Its best not to let anyone know you have money, so when you talk to them, always make out that someone else has offerred to clear the debt for you - say a family member or whatever.

This helps in 1) they dont now start chasing you for this cash and 2) in your negotiations, it stops them trying to push the value up, as you make it clear that your family member has only got X amount and cant raise anymore, etc.

Once agreed - dont send any money until they send you a letter putting their agreement in writing - tell them you need this and you will send the cheque by return of post once the letter arrives.

Back to your 40% offer. Depends on your circumstances. Some companies are really easy to deal with (HFC ended up writing off 75% of my debt with me not really asking them to do so!), but I founds Lloyds bank very difficult, and it took some very long negotiations to get them down to 50%

Just depends on what you have to loose if the negotiations go bad, or how much hassle you want!

All the best

debt23

fuzzgun19

Thanks for the advice debt23!

I found a letter on nationaldebtline.co.uk, and altered it to this.
I will send when I have the money.

Does it look ok?

WITHOUT PREJUDICE:
Dear Sir/Madam,

REF: 207610932\1-44\1

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to offer to pay the money which I owe in full.

However, a family member has offered to raise £640 to enable me to clear this debt.

I want to offer this an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as ‘satisfied’ in full.

I really need to clear this debt and I will send you a cheque by return of post once I receive your agreement to the amount of £640 in writing.

I look forward to receiving your reply.

Yours Faithfully

debt23

looks good to me.

All the best

debt23

fuzzgun19

Thanks for your quick replys debt23!!

Tootsie_Roll

Just a quick point - Abbey do not do 'full and final' settlements - it will show as part settled with the credit reference agencies. Still a 60% discount is not to be sniffed at and will cancel out all of the supposedly 'unlawful' bank charges - bite their hand off ! Abbey/Equidebt are not usually so generous.

fuzzgun19

As our credit rating is !!!!!! anyway, so i'm not bothered about it showing 'part settled'.

I will post back with any news.

Thanks!

fuzzgun19

Just received a letter back saying NO to £640, but they will still accept 50% (£786)....

I suppose theres nothing I can do, but accept that.

O well.