How much would you offer the debt collection agencies?

oliviatwist

Hi,

After many years of battling with stupid debts, I am finally getting somewhere!

I have heard of collection agencies making offers to clear the balance. I owe £4.5k to Robinsons, how much do you think they would take? Is there a lower limit? I'm not sure how much agencies pay for these debts from the original creditors.

I'm curious to know if anyone has had any luck with these people.

Cheers :beer:

happy_bunny_2

Whats the debt for?

How old is it?

Have you been paying something every month, how much?

They buy them for not a lot, but it varies on whether its enforceable, statute Barred, etc...

moohound

I had/have two with DCAs

1 with Moorcroft took 75% was Halifax -paid

1 with 1st Credit want 90%,I know others have paid less but they wont budge will have to pay it I guess, good reductions from others have made this do-able.

Some original lenders took a lot less see signature.

I think it depends on lots of things, how old the debts are, how much you are paying, mine would have taken 105 months to clear without full and final settlements and thats assuming no interest added.

I think they buy them for as little as 6% sometimes.

I was going to send CCA request and I even typed the letters, but I just want rid of them all ASAP.

Some people have got low % settlements of 25%

oliviatwist

The debt with Robinsons is for a Natwest overdraft. It's a long story but the top and bottom of it is the overdraft was £3k, I fell on hard times, lost my job etc and went with a debt management company. The DMC told me to swap bank accounts with the aim of getting Natwest to stop slapping charges on and freezing the account so I could pay some off each month etc.

Anyway, two terrible DMCs and a lot of months later, the total for that debt is aprox £4500.

I have a chance of consolidating, so I'm going to be ballsy and ring them up with a cheeky offer :-)

The debt is about three years old. I went from paying £300 per month to the debt management co. to eventually paying 100 per month then nothing (as circumstances got worse)

moohound

If you are currently paying nothing I think they will take it.

Deep_In_Debt

DCA's buy debts for pennies in the £ so start low - say 30% and at even 30% the DCA's would probably be making a nice, hefty profit. Expect a bit of to'ing and fro'ing though but it may be worth it in the end. I cleared one at 40% and I think the DCA realised after a while that I wasn't going to offer any more so they eventually accepted it.

Make sure you do everything in writing though. National Debtline website has a good template letter you can use.

happy_bunny_2

This is what you need:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Never ring, they may threaten and lie to you. They would never put the same in writing.

Maybe start at 25%-30% and see how you get on.

oliviatwist

Thanks everyone, I really appreciate the advice.

I'm going to get cracking now :T