Opening Dialogue With Debt Companies

paulmapp8306

If there is no interst being applied (as it seems seems), just add that you require no interest to be added, rather than asking interest to be stopped. it should be anyway - but if you have it in writing they cant add some elater.

You "could" wait and pay it off if you have the funds. They would almost certinaly be open to a full and final settlement offer - as they seem to be making them anyway.

If you have the funds available, it way be worth going straight down that route rather than offering a plan. Just write saying you were un-aware of the debt, and while not in a position to make a full payment you could make an offer of £x as full and final settlement of the debt.

Its likely the debt was bout at less than 10p int he £, so an offer of 15% of the original ammount may be accepted - and is certainly a decent starting point. They may aim to get 50% of the outstanding, but Ive had joy with as little as 12.5% once a debt has been sold on a couple of times.

Ultimately though, once you acknoledge the debt your going to have to pay towards it - so if your not going to have the funds for a Full and final in the next few weeks, but possible after that you could hold on a little while before making any contact.


As for payment - if you go down the agreed ammount/month route, just sent a postal order for £5 with your letter - thats valid payment.

feature59

Bit rude,

was meant to say in the previous message thanks for all the feedback. A bit of genuine advice really is greatly appreciated from you all!!!

billinghamfan

I got a full and final settlement of less than I originally owed the company by saying I have received £x amount from a family member than I can use to pay off the debt. I offered 95% but this was still with the orginal creditor maybe I should have offered less but I just wanted to knock the small debts off to be honest.
You should be able to get much more off as it would have been sold on for much much less than the original debt especially as it is with a second DCA. You must make sure that they can't chase you for the original amount, the remaining amount can't be sold on and that they will amend your credit report with settled and this must get this in writting.
Do not call them under any circumstances, letter (possibly email) only!

feature59

Hi Thanks again all,

Realistically If I live like a monk for the next two months and use some savings (which is restrictive yet do-able) I could probably have 70% of the debt available.

I cant believe that settlement is at little as 12% I think older letters (which I no longer have) offered £1500 so its do-able if I hold on a bit and maybe ask for a bit of help from family.

Can I ask how you phrased such a letter, did you go in with an offer of 12% initally? and was this by post? I assume that if they rejected and wanted full payment I could try delay them with asking to prove the debt etc.

Seeing as the default is already on my credit file I dont think it would matter if it was presented as settled but without full amount.

billinghamfan

Firstly if they have offered £1500 you can offer less. Use the gifted money thing.

Once you have sent an offer for full and final settlement you cannot then send a prove it letter as you have admitted the debt.

There should be a template letter somewhere on here.

feature59

Sorry to keep asking stuff,

Just want to get this clarified in my head and your advice is great!

I appreciate I can "try" haggle a cost with them and if not offer a monthly payment.

How do I ensure that the final offer is legally binding? How watertight is a letter from them saying its settled if another DCA comes knocking.

Finally where would I stand if the company never sent a settlement letter after the payment and continued to demand the rest.

After doing a search on the forum theres some bad feedback about Wescot and final settlements.

Many Thanks

billinghamfan

Do not send any payment until you have had confirmation from them in writting that they
- won't chase you for the original amount,
- the remaining amount can't be sold on
- that they will amend your credit report with settled
If you don't get that in writting don't send the money.
Also make sure you make a bank transfer or send a postal order, under no circumstances give them your bank details.

feature59

OK final question as that has cleared up quite a lot.

Im still not 100% as to who owns the debt I am assuming it has been sold to a number of companies as I had the original letters from the lloyds collection department, then moorcroft, then Wescot over about 24 months. However I have checked the letter and in the top corner ir states "client: Lloyds TSB"

Is it worth me sending a CCA request first to confirm who owns the debt or in reality doesnt it matter and if I go through westcot regardless would it make any difference.

Many Thanks

vax2002

If its been sold, the bank wont see a penny of what you pay, the debt collector gets the lot.

paulmapp8306

Indeed - the Lloyds thing is just so you know who the original holder was.

As for the % - 80% is the absolute max you go to - and they have already offered to settle for 75%.

if the original debt was £2000, then moorcroft bought it for £200-£400. They got no joy so have sold it on for less still (probably around the £50-£100 mark) to Westcote. While they will chase for as much as they can get - anything more than that represents a profit to them. Add in the fact you havent responded to date - and the debt is already several years old - incidentally WHEN WAS THe ORIGINAL DEFAULT? that is important. After 6 years from the last time you acknowledged the debt they have no entitlement to the debt - and the closer you get to that date the less they will take,

Seriously - i settled a debt with Westcot which was £4000, and they took £500 - which is 12.5%. Start around that leve saying its all you have. they will refuse the first offer, so up it with a justification of "i can borrow x which gives me". Then offer a 3rd and final offer saying "mum has agreed to help - but this is my final offer". make that final offer around 40-50% and they should settle.