What to do? Full & final settlement of debts

ridvimes

Hi,

I have discovered my sister (several breakdowns and recent operation with cancer being diagnosed and removed) has had a massive debt problem and her young adult son has being making regular small payments on her behalf to keep wolves from door. She acknowledges all debts except one but has no proof and son has being making payments to them including the one she says she knows nothing of.

All involved her being defaulted and only a few companies still take payments from her son, remainder are debt companies link, robinson, debt matters etc

I would like to make a full and final settlement on her behalf (she'll never pay them back with her health and the interest charged).

What do I do about the debt she claims is not legitimate?

What do I do for the debts handled by link etc -do Iwrite to the original lender or to the debt company.

Then do I basemy offer on original debt, the one with all the added charges and interest, or the one the debt company paid for the debt?

The companies have slapped charge upon charge on -her debts are from years ago -can she claim the interest and charges back. If so when? now or after settlement?

Ridvimes

Tixy

The debt that she doesn't agree with - she would need to start by sending the prove it letter to see what they respond with.

The F&Fs - make them to whoever is chasing for the money (assuming they have demonstrated they have a right to collect the debt).

The F&F offer just needs to be a £figure that you are prepared to pay, you can't base it on the amount the debt company paid for the debt as you don't know that figure.

The F&F settlement should encompass any charges that may have been reclaimable. She won't be able to claim anything back afterwards.

Start your first written offer at lower than you are prepared to pay so that you have some scope to negotiate/make a slightly better offer.

Are you certain F&Fs are the best way to handle these debts? has she spoken to one of the debt charities at all? might bankruptcy or a DRO be an option for her to consider.

happy_bunny_2

What do I do about the debt she claims is not legitimate?

Stop paying and send this signed for:
http://forums.moneysavingexpert.com/showpost.php?p=11570893&postcount=2

What do I do for the debts handled by link etc -do Iwrite to the original lender or to the debt company.

Write to the debt company. General rule is write to the last people who contact you about the debt, as long as you think they are legitimate.

Then do I basemy offer on original debt, the one with all the added charges and interest, or the one the debt company paid for the debt?

Before any of this, send each creditor a CCA request. They should respond with a copy and a statement listing the current balance.
http://forums.moneysavingexpert.com/showpost.php?p=11636295&postcount=5

If they don't have a signed original, for debts taken out before April 2007 they are stuffed in court. Send signed for.

The companies have slapped charge upon charge on -her debts are from years ago -can she claim the interest and charges back. If so when? now or after settlement?

See what comes back from the CCA request.
If no valid CCA, start at 15% I would suggest. Better to start low.


If any credits mess around with CCA request, stop paying, that way they will soon decide to write.

Also have a look at this:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

ridvimes

Thanks so much to you both. Hopefully I can sort it for them.