Agreed Settlement - Advice Please!

scunner

Hi

One of my creditors, a DCA has offered me an "agreed settlement" which reduces the debt by 70% and allows me to repay the resultant balance in thee instalments. I think I should accept and perhaps try to use the settlement as an example with other creditors (some other DCA's and others still the original lender) to seek similar agreements with them.

Is there anything I should insist on if I accept the offer please? For example, that a letter is issued that the remaining balance is written-off / the debt is settled in full / that they update my credit record appropriately?

Very grateful for any suggestions / advice please.

Thanks

awayinchina

scunner wrote: »

Hi

One of my creditors, a DCA has offered me an "agreed settlement" which reduces the debt by 70% and allows me to repay the resultant balance in thee instalments. I think I should accept and perhaps try to use the settlement as an example with other creditors (some other DCA's and others still the original lender) to seek similar agreements with them.

Is there anything I should insist on if I accept the offer please? For example, that a letter is issued that the remaining balance is written-off / the debt is settled in full / that they update my credit record appropriately?

Very grateful for any suggestions / advice please.

Thanks

Well 70% is a good deal, but I would try to negotiate that to 80% by saying you can raise the 80%. See what they say? If they are offering 70% try for 80%.
As for using it as a template for other creditors some will go for it, some will not. depends on how old the debts are etc.
But no harm in trying for sure. I have settled 3 debts in 40 days at 30% two other DCA's are sticking to a maximum of 50% so they can whistle for it, at the end of the day they have not even put the offer in writing so I am not shifting on those ones at present.

in my experience Bryan Carter and lowells take offers, cabot, mackenziehall and wescot will not shift.

Cabot tend to get mackenziehall to chase up some of their debts and then you pay a pro-rata profit to both.

make sure the wording includes: "full and final settlement" and "outstanding debt set to zero" some DCA's have been known to sell on outstanding balances after settlement.

Good luck

Tixy

Have a look at the national debtline website factsheet on full & final settlemnts - it gives details of the wording to insist upon and a template letter if you want to make F&F settlements to other creditors.

paulmapp8306

I had one settlement for 12.5% of the outstanding balance. That was without any negotiation. I tried to get other deals quoting that one as an example, but none of my other creditors went for it. there all old and been sold several times as well.

Only 2 even made counter offers, both for 80% of the balance so ??

Two years later I started negotiations to clear my debt, and with the exception of Barclaycard who insisted on 100%, all the others settled for between 30% and 75% of the debt.

scunner

Thanks for taking the time to reply everyone. Very much appreciated. As awayinchina suggests, I'll try for 80% at least (paulmapp seems to have done particularly well in that sense!). There's seems to be a great deal of variety in what creditors will accept. Is how often the debt has chnaged hands or been sold a factor in how much of a reduction is likely to be accepted?