loan settlement

lisaapril_2

Hi, Iam totally new to this and dont know if iam even in the right place?? i have got 2 loans that iam am currently paying a reduced ammount on. To cut a very long story short we have had a payout from a crash my husband had and its is so much lower than we expected! I was hoping to pay all loans off with it, but this isnt going to be possible now! so i am thinking of ringing one of our loan companies that we owe £4,500 to and making an offer of £3,000??? what do you think? can you do this? i have heard somewhere that it can be done?

erimus1

lisaapril wrote: »

Hi, Iam totally new to this and dont know if iam even in the right place?? i have got 2 loans that iam am currently paying a reduced ammount on. To cut a very long story short we have had a payout from a crash my husband had and its is so much lower than we expected! I was hoping to pay all loans off with it, but this isnt going to be possible now! so i am thinking of ringing one of our loan companies that we owe £4,500 to and making an offer of £3,000??? what do you think? can you do this? i have heard somewhere that it can be done?

Hi there. You can't just make an offer to a loan company. You have to request a settlement figure off them which will give you the amount, including any redemption penalties.

lisaapril_2

thanks for your reply and it was worth a try i suppose? thanks again

cripes_2

I disagree, I think you can make full and final settlements but mainly for people have stopped paying the loan altogether,

loan companies will think its better to have 75% of something than 100% of nothing and just write off the loss...

as you are making token payments they may not accept but it could be worth a try...

but on the other hand if they know you have a few grand in the bank they may up your payments back to the original level

i'm just guessing though

just tread carefully

owen_money

There is a lot of info on full and finals on here, but this is the way I see it.
You can make an offer depending on the circumstances. If you are paying the full amount each month and never missed a payment, then no chance.
If you have defaulted and are paying a reduced amount but the loan is still with the orginal lender, then yes, but the amount will be quite high.
Debt passed to DCA then deffo, amount will vary but can be quite low.

I think that is in a nutshell, but search the threads

lisaapril_2

my loan has been passed on to a dca! my normal monthly payments were £152 per month then due to work etc dropped to £20 per month and now they are £35 they say we owe over £4,500 but we didnt get that much from the claim so its impossible to pay that in full. i never ever miss a payment and update them every month on my situation. iam going to wait until the claim is all sorted and i have the money then ring them!! wish me luck! iam just a bit scared incase they say they wont settle but they will have the £3,000 anyway! i have other loans that may be about £2,000 so i know i can clear at least one loan, but as thats the biggest i want it gone! thanks everyone xx

fatbelly

lisaapril wrote: »

my loan has been passed on to a dca! my normal monthly payments were £152 per month then due to work etc dropped to £20 per month and now they are £35 they say we owe over £4,500 but we didnt get that much from the claim so its impossible to pay that in full. i never ever miss a payment and update them every month on my situation. iam going to wait until the claim is all sorted and i have the money then ring them!! wish me luck! iam just a bit scared incase they say they wont settle but they will have the £3,000 anyway! i have other loans that may be about £2,000 so i know i can clear at least one loan, but as thats the biggest i want it gone! thanks everyone xx

Then it's very straightforward. They can have £35 per month for the next ten and a bit years or £x now.

If x = 1200 it will probably get rejected but we recommend starting low as you can always increase your offer (to £1350?). I've done a few at around 30% recently, as have others on here.

Make the offer in writing following the letter in the factsheet, and don't part with any money until you have the deal in writing from them and it is unambiguous.

Factsheet | Full & Final Settlement offers

lisaapril_2

thanks fatbelly! so and i apologise in advance for my "thickness"! ha ha but are you saying to offer 30% of the amount i owe which is £4,500 ( well that what they say is the lowest they will accept?) i owe around £5,000. so 30 % of £4,500 would be £1,350??? would they want to know how much we got from the cliain and would i have to prove it?? omg id love love to just pay £1,350 i would be able to pay my other loans at that rate. thanks again

erimus1

cripes wrote: »

I disagree, I think you can make full and final settlements but mainly for people have stopped paying the loan altogether,

loan companies will think its better to have 75% of something than 100% of nothing and just write off the loss...

as you are making token payments they may not accept but it could be worth a try...

but on the other hand if they know you have a few grand in the bank they may up your payments back to the original level

i'm just guessing though

just tread carefully

A lender would not offer a reduced settlement figure to someone that was still paying (albeit at a reduced rate).

erimus1

If the account is already defaulted then you would be better off waiting for it to be sold on to a third party. Then offer them a settlement. These debts are purchased for pennies in the pound, so there is a lot of scope for a good reduction.

fatbelly

lisaapril wrote: »

...but are you saying to offer 30% of the amount i owe

Yes

lisaapril wrote: »

...would they want to know how much we got from the cliain and would i have to prove it??

They might ask. I had a client who got some money from a house sale. During the negotiations, the creditor asked to see the sale documents. I told them to get lost. They settled anyway for what we were offering, which I think was a shade under 30%.

He was paying monthly at a reduced rate, and would have continued for many years if they had not settled. Other creditors had already offered to settle. Some were the original creditor, some were debt purchasers.

I'm not guaranteeing success at any particular level. Try it and see what happens for you.

I think for my guy there are still three creditors who won't even respond (at the moment) to our offers. This can be a quick process or can be drawn out and difficult.