Opening Dialogue With Debt Companies

feature59

Hey,

Long time reader but First post but looking for advice.

I have a 2k debt with lloyds which has been sold to Wescot. I have moved address and not been in contact with them for two years. (really bad I know)

They have started mailing my new address and Im in a position (and mental state) to start paying this back. However I cant pay a lump sum and have worked out I can budget a maximum of £200 per month to pay this back.

The question I have is how do I approach the company getting them to accept this offer? I have heard not to call them because they may use pressure tactics, but is it best to just write and say, I can afford £200 a month. thats it.

Obviously once I reply they have confirmed my address so I dont want them to be demanding the full amount if they reject my offer.

Sorry to ask but I really dont know how to start that initial contact and the tone I should take.

Any help would be greatly appreciated!

Many Thanks

paulmapp8306

For any offer you need to give them a full SOA to proove you can only realistically afford what your offering.

Provided you can do that, just send a letter with your SOA, offereing the payment provided any interest is frozen and you should be fine.

feature59

Thanks for the prompt reply.

I know there is a wealth of stuff available on here about SOAs but just one question.

Once you complete the document do you have to send documents such as payslips? proof of all bills etc?

Thanks Again

paulmapp8306

Not unless they request them (which they might), but generally they dont or just ask for payslips as proof of income levels.

Just fill in an SOA, showing reasonable living expenses and £200/month remaining, and offer to pay that ammount.

billinghamfan

Make sure that the £200 is what you can actually afford as if they agree to it and you default on this they won't be as helpful again.

paulmapp8306

Indeed - dont forget to put a little into things like perscriptions, child expenses (if you have kids), stationary, optitions, emergency fund, newspapers/magazines etc etc. There all valid expenses and while its only a few £ youd be aloud, it all helps.

Id also post the SOA here first, as most of us know what are "acceptable" ammounts to put in various areas. If some are too high then your offer will get refused, but if there too low you will struggle to meet the £200.

What they will do is say "were not happy your spending £xx on food and £xx on clothes" but what they wont do is say "we think your not budgeting enough for xx or xx".

vax2002

Before you do anything you need it in writing, that is a LETTER on company headed note paper on what level of interest they intend to charge and how the debt is to be structured for payment.
If they add on £5k interest at the start of the term and payments go towards interest, you may never pay the loan off as the capital interest keeps increasing.
I would ask them to put the offer to you and lay out very clearly the structure and fixed interest charges and total amount of interest payable on the whole period.
Just offering £200 a month may see you owe more in 2 years time than you do now.

paulmapp8306

No - the offer is not from the company, its from you.

Send the SOA, and a letter offereing the £200 (or whatver the SOA shows), providing interest is frozen. State you need a letter confirming the payment offer is accepted and that interest is frozen. Until then make a minimum token payment (say £5/month). State that on your letter as well - that your making it, and will continue to make that payment as a good will until an agreement can be reached. Dont pay the £200 until you have the agreement in writing though.

feature59

Just to clarify,

The account this debt has come from with Lloyds has closed and from what I can tell the debt has been sold (Originally when at old address I was getting letter from Moorcroft, now its Westcot) The owing amount on both letters has remained static (over two years), I have had a few letters reducing the amount. Im a little confused as to the interest situation previously mentioned.

I assume if I pay off by month then interest is added which is fine, but if this is the case whats stopping me holding on another few months and paying it off in a lump sum with no interest?

This will be the first contact I will have made with the debt agency and so I have no previous payment setup or ability to make a payment as I dont have their details.

Im just a little confused sorry

Thanks again

billinghamfan

If it's been sold off twice you may be able to get a full and final settlement amount if you can afford it for a reduced amount. I'm not an expert but others on here are!

feature59

again its a question of how you approach the company for this kind of thing.

I feel I need to be firm and present an offer one way or another, If this was the case do you demand a reduced offer? and then what if they haggle and its still unaffordable.

Would I just be better off phoning them? or is this a deathwish?