Nationwide Credit Card default....how to settle?

jennlx

So, my hubby was secretly being naughty with money - overdue credit cards, into bank overdraft every month and it all came to light. I was v. angry (as we've been here before and were trying to get a mortgage) and cut up his credit cards and arranged settlement of the accounts. However, I forgot about his Nationwide credit card - and then we moved. They NEVER chased him down which was odd, as we're on electoral rolls etc. (and I collect the post, haha!). We only recently checked Noddle, and bang! There is was. (Not showing on Experian or Equifax). Anyway, there's about £500 defaulted and Nationwide have sold on and don't want to know when he tried to settle. So now we're onto Debt Agency, who obviously have purchased for a much lower amount. Money is extremely tight and so want to try and do a full settlement offer - we offered £150 and it was turned down. Debt advisory asked for our incomings/outgoings and advised that we should offer £1 per month as we have no money to spare (I'm on maternity leave), but I'd rather have it settled. Any advice in respect of how to negotiate with debt agency?

chanz4

Just say no income, been offered £150 by a relation take it or leave...

Tixy

How did you make the settlement offer to the debt collection agency?
By phone or in writing? if you haven't yet made it in writing then I would do so - use one of the templates that are around (national debtline website has a useful factsheet & template).

If they won't accept your offer then he could either consider increasing his offer (if he can afford to do so) or he could write to say he can only afford to offer a token payment a month. After a few months of them only receiving a token payment it might be then worth trying another full & final offer.

Its not unusual for a creditor not to try searching for an individual who doesn't pay their debts - they won't necessarily realise the debtor has moved, they could just be ignoring the post. Its often not until a debt is with a collection agency that they try to track down debtors.

jennlx

Thanks for your responses. He's just got off the phone to them. We tried your tactic chanz, but they weren't having it at all. We spoke to the National Debt Helpline first, and sent a template letter asking for a breakdown (as we genuinely have no idea how much is charges/interest etc.) No response. Did it again, and added on offer for settlement and then received a letter saying it had been declined and telling him to call them if he had financial difficulties. They won't even accept a token payment each month. They have only said that if we complete an expenses form, detailing our finances, they may 'put it to the underwriters' (ha!). They're MK Recoveries, a hard nut to crack. I'm thinking of sending back ANOTHER letter, saying that we have not yet received the requested statement and also that we have offered £150, or monthly token payments, and that they have been unwilling to negotiate. Annoying!

Tixy

Best way is not to talk to them on the phone - but to do everything by letter. The only reason they want people to phone them is they generally find it easier to harrass and bully people into paying more than they can afford on the phone. And its harder to prove if they break the OFT debt collection guidelines.

Regardless of whether they say they will accept a token payment - start making the payment anyway each month. Doing that and refusing to talk to them will soon get the message that you are not going to be bullied into paying what you cannot afford.

jennlx

Will do, thanks very much for your advice!