Settlement Offers

ollie2008uk

Hi I was hoping someone could help me out with the following, I have been given some money from a family member to clear my debt.

I have been given £8,000. My debts are as follows:

1 cc: £1771
2 cc: £3677
3 cc: £1302
4 cc: £2839
5 cc: £2386
6 pl: £2189
7 pl: £4466

I plan to offer the following:

1 £760
2 £1575
3 £559
4 £1219
5 £1025
6 £940
7 £1918

These have been worked out using the following method:

£8000 x debt / total across all creditors

If anyone has any advice or guidance i'd be very grateful.

ylesia

I will be embarking on this journey soon for my mum, from what I've learned reading on the forums the golden rules are:

1. Get it in writing and make sure the wording is clear that it is a full and final settlement

2. Start lower that what you can afford so you have some room to move upwards as the debtors will most likely refuse your first offer but may make a counter offer.

So maybe start at around 25% and see how you go

Good luck!

ollie2008uk

Thanks for your reply, this is really helpful and hope you manage to help your mum.

harveybobbles

Have you CCA'd all of the debts to find out who actually owns them? Also, are they all showing on your CRA file?

How old are the debts? When did you last pay any of them? Are they all enforceable?

Lots of things to look into before just paying them as some of them could have been bought for a penny for every pound by some bottom feeding DCA.

ollie2008uk

Thanks for your reply,

couple of questions:

1 Whats CCA
2 CRA File?
3 What do you mean enforceable?

The debts are quite old up to about 5 years or so. There all un-secured I was paying through pay plan but the monthly payments are actually crippling me financially.

harveybobbles

CCA request... Send this:

Dear Sir/Madam

Re:− Account/Reference Number 111111111111111111

This letter is a formal request pursuant to s.77/78 of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide.

I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77(6) will apply.

(DELETE THIS BELOW IF YOU ARE SENDING THE LETTER TO THE ORIGNAL CREDITOR AS OPPOSED TO A debt collection AGENCY)
If it is your view that you are not the creditor, s.175 of the CCA 1974 applies in the case of a simple assignment, and places a duty upon you to pass this request to the creditor. In the case of an absolute assignment, you are a creditor as defined by s.189. If you contend that you purchased the rights but not the duties of any agreement, you are reminded that s.189 of the Act is clear that an assignment is of both rights and duties.

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection From Unfair Trading Regulations 2008 (CPUTR).

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.

If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

We look forward to hearing from you.

Yours faithfully


print your name

harveybobbles

CRA File - Credit file - checj to see if ALL of the debts are showing on there. You may find some aint!

Get your credit file via someone like Experian or Equifax. If you go thru TopCashBack YOU get paid about £7.00

Don't pay ANY of the debts until you have sent the CCA request letter to them all. Send a £1.00 Postal Order. DONT SIGN ANY LETTERS - PRINT YOUR NAME.


Edit: They wil lreply saying that they can't comply with your request due to you not signing the letter. There isa letter to send for that too! Lol.

Best thing to do is to joing consumeractiongroup

ollie2008uk

Thanks very much for that, I will get this sent out during the week. Also I will join the consumeractiongroup.

Thanks once again.

harveybobbles

It's a brilliant site! Full of useful people on there (like me lol)

I'm now sorting debts out for lots and lots of people!

Gimpsdad

If you find that all these debts still exist, then the most cost effective way of getting the best deal on settlements is to offer them via a one off IVA. £8k is more than enough, you may, depending on your own circumstances, be able to offer less than that. The legal guarantees of an IVA work in your favour on the basis that if one or more creditor give you risible offers on discounts then that will blow your offers out on an informal basis, but may be over-ruled by other creditors out voting them on an IVA.

Definitely worth a chat with an expert, visit iva.com, speak to 2 or 3 and, if you do go down that route, remember to choose an IP that will propose without a fee in the event of rejection (I have never seen one rejected but better safe than sorry as I have said in another thread).

harveybobbles

You could always look into a Debt Relief Order. One off payment of £90. Lasts for 12 months and all the debt is gone.

You just have to have LESS then £50 a month disposable income.

First off is to check your credit file to see if all of the debts are showing. If they are, offer them all a low settlement offer and work your way up. Slowly.