Offering Full & Final Settlement

dustybin1970

Hi there, I have been on a DMP for about 9 months paying half the minimum payments. I got into trouble because the credit card providers upped the interest.

Anyway all 4 of them accepted the reduced payments no bother but MBNA are being a pain, they have defaulted me and terminated the agreement and obviously this is registered with CRA so credit file crap. The other 3 have registered Arrangement to Pay on CRA but show I am up to date with payments.

The letter they sent me hinted that they would accept a settlement, I owe £2,790. Does anyone know if they would accept a reduced amount and what percentage should I aim for?

Any help would be appreciated.

Thanks

Hopelessly_Hopeful

Hi

Most people say offer 30% then work upwards.

That said do you know APs are worse than defaults? Defaults start ticking their 6 years down as soon as you have them. With AP and a 4 year DMP they stay on until the end of the DMP then the 6 years starts so 10 years in total.

Now that MBNA have defaulted you they may be more reasonable with the interest.

Good luck

HHx

dustybin1970

Thanks HH,

not too bothered about credit rating to be honest want to pay debts off eventually, just want MBNA off my back as pain in backside! Have decided to shoot for the moon and offer £500 and see what they say, have nothing to lose and thinking best to start low. :rotfl:

Cheers

925pws

I would have gone with 10% and increase to 15%. Make sure it is a F&F settlement.

dustybin1970

Thanks 925pws,

I have used the template from national debtline and having read great forums here kind of know what i'm doing. Have nothing to lose and am offering £500 (about 18% of debt) take it or leave it so will see if they bite. They dont scare me as I worked for a bank for 6 years so know how they tick!

925pws

dustybin1970 wrote: »

Thanks 925pws,

I have used the template from national debtline and having read great forums here kind of know what i'm doing. Have nothing to lose and am offering £500 (about 18% of debt) take it or leave it so will see if they bite. They dont scare me as I worked for a bank for 6 years so know how they tick!

Great stuff DustyBin - nice to see someone else who isn't afraid of the banks. Go for it!

dustybin1970

MBNA update, they have transferred my debt to Aktiv Kapital who say they are happy to continue with the arrangement. I fired off a letter offering £350 (knowing it was a long shot!) full & final settlement for £2720 balance .

They have written back today rejecting it and offering to settle for £2100. Can't afford this (money coming from OH) could maybe go to £1500. What do I do next? Haggle a bit more and hope for the best?

Any advice greatly appreciated.

sistafromanothermista

It's always worth a try, nothing ventured nothing gained and all that....

sickasachip13

Hey Dusty

Definitely haggle. I'd probably offer £1000 next. Give it a whirl, what's the worst they can say?!

SAAC

artyfartyem

Hi Dusty,

I had an MBNA cc with just over £1000 on it, I offered them £300, £400 and £450 all declined and ended up settling for £500. They said it would be registered as a default but it hasn't yet and I paid it back in January. Just make sure you get the written confirmation that you won't be chased for the outstanding amount.

Good luck!

dustybin1970

thanks everyone for quick replies, think I will chance my arm again and offer £750 :rotfl:thinking of asking for CCA first though, you never know it might have got lost in post!