Asking for a reduction for lump payment

moneytinker

Hi guys,

I wondered if there was some kind of standard letter to send to debtors asking for a reduction in the amount I owe to them for a one-off lump payment?

I'm in an unfortunate debt hole but my loving parents have offered to help me out to pay off my debtors. I wondered if becuase I was effectively clearing the debt (some I have had for a number of years) whether they would be willing to accept a reduced amount (say 75% of the total amount paid). I know in the past some of these companies have written to me offering a reduction but I didn't take them up on it.

Many thanks for reading my post and I hope to hear from you soon.

Crown

From nationadebtline.co.uk

May 9, 2007

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

WITHOUT PREJUDICE:

Dear Sir/Madam

Re: 4563210025897412

We write with reference to the money which you are claming on the above account.

We can confirm that we are unable to offer to pay the money which we owe in full.
.
However, I can raise £775 and I want to offer this an ex−gratia payment in full and final settlement of the
account. This offer is made on the clear understanding that, if accepted, neither you nor any associate
company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be
released for any liability.

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of
payment.

We look forward to receiving your reply.

Yours faithfully

Mr A N Other

Crown

Also take a look at the nationaldebtline.co.uk site. there is a great article on making full and final settlement offers. a lot of companies will accept les than 75% so you stand a good chance if you already defualted on your accounts.

Good luck

moneytinker

Crown,

Wow, many, many thanks. you've made my day.


:j

Miss_Frankie

Mine too. I'm in process of doing the same. I'll use the above letter. Who are your creditors? Offer them a much lower amount then you have something to play with. Please let me know how you get on.

Crown

Hi Miss Frankie,

I saw that you are looking intothis froma few replies on other threads. May I ask if you have spoken to the CCCS or one of the debt helplines available as they offer great advice and template letters if needed.

As I already suggested take a look at the national debtline website as they have a a lot of info regarding the procedure with a few case scenarios (or they did at one time).

here is a direct link to the main article Im talking about.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers