loan settlement

lisaapril_2

well i have had a letter back from one of my lenders asking for a financial breakdown of our income outgoings etc they say they need this before they can ask their clients ( its a debt collection agency iam dealing with) does this look promising?? thanks

bargainbetty

You do not have to give them this. Write back, saying that the funds have been made available to you from a third party on the understanding that they are using solely for the purposes of settling a debt in full. If you cannot obtain a reduced settlement figure, then you will continue paying the agreed reduced sum until the debt is clear as the funds will not be provided on those terms.

Do not mention offering the money elsewhere, and you do not have to tell them what you have - under no circumstances send bank statements or anything!

If you give them details, they have information on you and your debts. They have no legal right to it, and you don't have to give it. This enquiry is about a full and final settlement, not a revision of your monthly agreement.

Good luck

lisaapril_2

what i ave done is told them i have got £3,000 that i will split between 3 loans i have on a pro rota basis?? they have asked me in the letter i recieved today for details of any loans that have accepted my offer?? oh so do you think i have messed up a bit?? its so confusing as iam not well up on this sort of stuff i was going to ring the company and offer them the full £3,000 and just not pay the other two loans??! good job i joined this group i say xx

bargainbetty

In telling them you want to split it, you may have given the impression that you wish to make extra payments rather than a settlement.

Depending on how you phrased it, try writing back and clarifying it - say that the money is only availble if it is used to fully settle a debt. You've already set the price, so you will find it hard to go back on it, but ask if you can do a full and final for that amount - only do it in writing, and don't agree unless they say full and final.

Alternatively, write that one off altogether and start with the other loans. Write to them offering 30% in full and final settlement - say that the money is only available if you can get the F&F settlement etc.... see if you can get the those debts reduced and cleared instead.

Don't do it by phone. You'll probably give them too much information and you don't have proof of what they agree to. In writing only! Ignore the other one for now - you might be able to really bring down your debt on the others first.

I can't find the link for the template letters, but have a look around and see if you can find the link.

Good luck

fatbelly

lisaapril wrote: »

well i have had a letter back from one of my lenders asking for a financial breakdown of our income outgoings etc they say they need this before they can ask their clients ( its a debt collection agency iam dealing with) does this look promising?? thanks

Not particulary. They're fishing to see if a ccj followed by some sort of enforcement might be a better option for them.

If you are on benefits, in rented accommodation with no expenditure to a car, I might consider giving them the info. Otherwise no.

Point out the offer is on the table. Tell them to refer it to their client.

Edit: I take it you did use the letter in the factsheet I linked to earlier?

lisaapril_2

i have used a template letter that i got from the national debt line website, i then rang them to clarify also i have just looked at the letter i sent and it does say a one off payment and full and final settlement are also mentioned. phew! so they know its a full settlement, i thought they were asking for a financial statement to check our situation has'nt changed, which it has'nt. what happens if they say they wont accept it as a full and final settlement but they want the lump sum and they want me to continue with my reduced payments?? thats my worry. thanks for everyones help on here by the way, its really been great advice

lisaapril_2

well fatbelly they have asked how much the car is worth and the house!! as i said all our outgoings are more than the income we get, oh so i should just write back to ask them to ask their client will they accept and tell them iam not willing to give them a financial breakdown?? with the car and what the house is worth there is about £4,800 car worth £1,800 and on the house if we sold it we would make about £3,000 on it. so could they make us sell our car or even sell our house??? oh scary stuff!

lisaapril_2

fatbelly wrote: »

Not particulary. They're fishing to see if a ccj followed by some sort of enforcement might be a better option for them.

If you are on benefits, in rented accommodation with no expenditure to a car, I might consider giving them the info. Otherwise no.

Point out the offer is on the table. Tell them to refer it to their client.

Edit: I take it you did use the letter in the factsheet I linked to earlier?

yeah i used that letter you linked national debt line

fatbelly

lisaapril wrote: »

well fatbelly they have asked how much the car is worth and the house!! !

Was that just a question on the 'letter back from one of my lenders asking for a financial breakdown of our income outgoings etc'?

It's definitely a fishing exercise and given what you have just written, you do need to be careful.

I think a polite 'please refer my offer as it stands to your client' and 'I am sending a copy of this letter to the original creditor' stands the best chance for you.