Settlement Help

chrisshayess

Hi,

I currently have 2 debt:

1. Blackhorse for a hire purchase agreement which has £4019.76 left owing.

2. Student Loans Company which happend when I left Uni half way through the year and I owe them £470.92

Totalling £4490.68

I am asking for advise about sending out a settlement letter to both of them to possibly reduce the amount left to owe so I can start improving my credit score.

My circumstances over the past 4/5 years have not changed and I currently pay very small amounts to the two companies. Blackhorse I pay £43 per month and SLC I pay £67.27. I current have around £2,300 which I am hoping to pay them both off with.

How likely is it that the two companies are willing to cut the debt to around 50%?

Also, I have been paying Blackhorse for a little while now at £43 a month and I have today received a letter stating that they are passing the debt over to their debt collection agency. I have not missed any of my instalment payments so they are they doing this?

Any advise would be appreciated.

Tixy

Its pretty standard that a debt that is being paid back at reduced amounts will be passed first to an internal debt collection agency, and then later possibly sold to a third party debt collector.

Have blackhorse frozen interest on the debt? Given the repayment rate relative to the balance they may well accept a reduced full & final settlement, though whether they will go as low as 50% is difficult to guess.

No idea if student loan company are receptive to settlement offers in general. But I suspect it might be quite unlikely in your instance given that at the current repayment rate it will be clear in around 7months.

You mention about starting to try to improve your credit score - what shows on yoru credit file at the moment in relation to these debts- does the SLC debt show at all?
If the blackhorse debt is still showing how long ago is the default date shown on your file?

chrisshayess

Forgot to say that I terminated the hire purchase agreement with them as I was unable to make the full payment. So I agreed to make a smaller amount to pay off the rest of the amount owing.

chrisshayess

Tixy wrote: »

Its pretty standard that a debt that is being paid back at reduced amounts will be passed first to an internal debt collection agency, and then later possibly sold to a third party debt collector.

Have blackhorse frozen interest on the debt? Given the repayment rate relative to the balance they may well accept a reduced full & final settlement, though whether they will go as low as 50% is difficult to guess.

No idea if student loan company are receptive to settlement offers in general. But I suspect it might be quite unlikely in your instance given that at the current repayment rate it will be clear in around 7months.

You mention about starting to try to improve your credit score - what shows on yoru credit file at the moment in relation to these debts- does the SLC debt show at all?
If the blackhorse debt is still showing how long ago is the default date shown on your file?

The payments to BH doesn't involve any interest.

SLC doesn't appear on my credit report at all.

BH shows on certain ones but not all credit agencies. But I have noticed it only says NR meaning not reported.

BH have passed the debt to Hillesden Securities Ltd.

fatbelly

chrisshayess wrote: »

The payments to BH doesn't involve any interest.

SLC doesn't appear on my credit report at all.

BH shows on certain ones but not all credit agencies. But I have noticed it only says NR meaning not reported.

BH have passed the debt to Hillesden Securities Ltd.

Hillesden may well have bought the debt (which is why BH are not reporting). In that case they will have paid well under 50% for it (maybe 15%) and so should be open to an offer. I doubt you will get anywhere with SLC but no harm in asking.

When you say you are paying Black Horse £43 per month, are you actually paying Hillesden's collection arm, DLC?

chrisshayess

I was paying BH. The letter about the take over only came a couple days ago.it says i have to start paying the collections company from now on. I am going to write a letter to Hillesden for a settlement quote.

Any suggestions on how much I should offer them?