Making a final settlement with a debt collection agency

bluemover9999

This is my first post after years of using this brilliant site so apologies if it's in the wrong place!:)

I'm working hard to pay off my credit card but I have an outstanding debt that is not proving easy to shift!
It dates back 13 years and relates to a Business overdraft I had on a long defunct business (13 years) on a Natwest Business bank account held jointly with a former business partner who I no longer have any contact with (or know where they are) who ran away from the debt leaving me to deal with it!!!:mad:
I have been paying £20 pcm for about 10 years as well as making some lump sum payments before that and have reduced the outstanding debt from £6500 to £3970.
As I said, the original credit agreement and therefore the debt was in joint names and I've lost count of the number of times I've explained this to the 3 collection agencies who have held the account. I've sent them paperwork backing up my claims but all to no avail - they say that I am liable for the WHOLE debt. Annoyingly, the original paperwork was lost in a house move so now I don't even have that to back me up!

I just phoned the agency (Experto Credite) to find out what they would accept in full and final settlement they offered me 50% (£1895) but that's out of my league and anyway I feel like paying that would mean that my ex business partner would be getting off scot-free

Does anyone have any advice about how I should proceed in trying to make a deal with the agency. They say that the debt is still held by NatWest and they are acting on their behalf but I always thought that a bank sold the debt on to a collection agency and had nothing more to do with it? Would I be better off dealing with NatWest to get them to hear my plea? Would they hold a copy of the original paperwork that would show I was only liable for half the debt? Would that even prove I was only liable for half the debt?

Clearly, this is a cheap debt to manage but it has been hanging over me for too long and I'd like to get it out of my life, so any advice would be very gratefully received.

timetogrowup89

Hi,

Im sure I read on here somewhere before that once the debt is that old that companies will accept massively reduced F&F settlements. You could maybe start a lot lower than 50% and see if they accept.

If they do accept any amount you offer then make sure you get it in writing that they accept this as the full payment and will not sell the remainder on. Don't pay anything until you have this.

Hopefully someone else will have more advice than this.. There are letters somewhere that show how to set out a F&F settlement offer, will see if I can find them

bluemover9999

Thank You, really appreciate your reply.
I had read that about old debts too so I decided to offer them 10% (£350) that was when they told me that they would only accept 50%. Not sure whether to write to them with an improved offer as the person on the phone was pretty definite. They said that because they were acting on behalf of NatWest, they might not even accept a 50% deal!

I found some standard F&F letters on the debtline website but not sure what good writing to them will do me, I might be able to stretch to £700 but 50%(£1895) is more than I want to pay at the moment.

manzanilla

They say that the debt is still held by NatWest and they are acting on their behalf but I always thought that a bank sold the debt on to a collection agency and had nothing more to do with it?

Sometimes debts are sold on, sometimes they aren't. It is VERY VERY unlikely that they have lied to you about this, so no point in pusuing that.

Would I be better off dealing with NatWest to get them to hear my plea?

No

Would they hold a copy of the original paperwork that would show I was only liable for half the debt? Would that even prove I was only liable for half the debt?

VERY VERY unlikely - the debt was almost certainly taken out on s 'joint and several' basis, which means that bothe of you are liable for the whole amount and the bank can choose who to chase.

Sorry these arent the answers you wanted to hear.

fatbelly

bluemover9999 wrote: »

I just phoned the agency (Experto Credite) to find out what they would accept in full and final settlement they offered me 50% (£1895) but that's out of my league and anyway I feel like paying that would mean that my ex business partner would be getting off scot-free

Actually that's quite generous for an opening offer. They would probably go lower. You could try £1000 and maybe meet them half way.

But do it in writing and do not pay anything until confirmed in writing.

Stewart_78

As above, you will be 99% likely to be fully liable, as would your ex partner but if they can't find them, they will chase you.

Write in with a sob story and offer what you think you can come up with less a bit. Be prepared to rise a bit but then be patient and stick to your guns. Just tell them that's all you have and let them stew on it.

spacey2012

Have you explored if they have the relevant paper work to pursue this debt, or have you sent them a copy of your agreement just in case they did not have one and could not collect the debt.
They need to hold the agreement to collect upon it.
Not a letter mentioning it, the actual other bit to the one you have.
Unless like I said you sent them your copy.

UsetheFORCE

Generally, can you only afford £20 per month? at that rate and with no increase likely soon then it's going to be a long time until they get their money back.

I settled debts for 40p in the pound years ago and they were willing to listen upon realising that a few grand now was more beneficial than about a fiver a month!

They will go lower than 50%, I am really suprised myself that is the first offer...it is normally higher.

bluemover9999

Thank You for all you replies! All very informative and with excellent advice.

I'm going to write to them with a lower offer and see what happens.

Thanks again!:D

harveybobbles

I'd write to them with a CCA request first..

bluemover9999

Thanks for the reply...Unfortunately a CCA request doesn't apply here because the debt was a business overdraft