Odd letter from Aktiv Kapital

sparkle_star

I hope I have posted this in the right place. Apologies if I haven't.

I am on a DMP, and one of my debts is owned by Aktiv Kapital. The outstanding balance is around 5k. I received a letter from them a couple of weeks ago, thanking me for keeping up my payments, and offering me a 'discount' on the balance owing. The letter said that if I paid just over 1k by 31 October my account would be cleared. I was rather bemused by this, as I've never heard of that happening before. It's clearly a great offer from them, but I'm a bit suspicious of their motives! Can anyone shed any light, please?

Tixy

Discounted settlements are often offered by debt collectors, particularly if your current rate of repayment means it will be years until the debt is repaid. Or equally debtors often write to the debt collector to offer a reduced figure in full & final settlement of the debt.

But when they are offering a very high discount then that can often mean that they don't have the correct paperwork to enforce the debt anyway.

What sort of debt was it originally? have you ever asked Activ for a copy of the credit agreement (assuming it is a debt covered by the consumer credit act).

If you do want to settle early you need to ensure that the wording from them is clear that the amount will be in full & final settlement of the debt and that they won't chase you further or sell the remainder of the balance on to another debt collector - useful factsheet here with some guidance - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

sparkle_star

Tixy wrote: »

Discounted settlements are often offered by debt collectors, particularly if your current rate of repayment means it will be years until the debt is repaid. Or equally debtors often write to the debt collector to offer a reduced figure in full & final settlement of the debt.

But when they are offering a very high discount then that can often mean that they don't have the correct paperwork to enforce the debt anyway.

What sort of debt was it originally? have you ever asked Activ for a copy of the credit agreement (assuming it is a debt covered by the consumer credit act).

If you do want to settle early you need to ensure that the wording from them is clear that the amount will be in full & final settlement of the debt and that they won't chase you further or sell the remainder of the balance on to another debt collector - useful factsheet here with some guidance - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Thanks for replying Tixy. It was a credit card debt, that was sold to them by the originaly credit card company with whom I had the card (sorry, I can't remember off the top off my head who this was). I haven't asked them for a copy of my credit agreement. Is this something I should pursue?

tallyhoh

My OH gets these all the time. Some of them are quite amusing, asking him what colour "plan" he would like to choose as if it was a paint chart!

Does make you wonder if they have the correct documentation for the debt?

sparkle_star

tallyhoh wrote: »

My OH gets these all the time. Some of them are quite amusing, asking him what colour "plan" he would like to choose as if it was a paint chart!

Does make you wonder if they have the correct documentation for the debt?

What is the correct documentation that they would have to produce in order to enforce the debt?

Tixy

A copy of the consumer credit agreement - template letter here from national debtline website below

The Loan Company

Company House,

Church Street,
Newtown,
Kent,
R1 7HG


Account No: 4563210025897412

Dear Sir/Madam

With reference to the above agreement, we would be grateful if you would send us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied. We understand that under the

Consumer Credit Act 1974 [sections 77-79], we are entitled to receive a copy of any credit agreement and a statement of account on request.

We enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

We understand a copy of any credit agreement along with a statement of account should be supplied within
12 working days.


We understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

We look forward to hearing from you.

Yours faithfully

Mr A N Other

sparkle_star

Even if the debt is unenforceable, would it still not be outstanding on my credit file?

Tixy

Yes it would still stay on your file for 6years from the date of default shown on your file. After that the whole record of the debt drops off.

Some people stop paying altogether on a unenforceable debt, some people use it as a reason to offer a very low settlement offer in full & final settlement (the potential benefit of this route is that if the creditor/debt collector manage to produce a credit agreement at a later stage then they could otherwise enforce the debt again).

happy_bunny_2

Presumably its defaulted, so will fall off 6 years from default date, paid or not.

If it was taken out pre April 2007 and they don't have the signed agreement will everything in order, no CCJ if defended.

If they are offering to settle for 20%, chances are its unenforceable.

That's quite a good deal, if you want to pay. A CCA request will reveal all and likely you would get the same deal again in the future.

sparkle_star

The debt was originally with MBNA. They then sold itto Experto Credite who sold it to Aktiv Kapital.

The amount outstanding is £5872.96 and they have offered me an 'opportunity to clear my account' with a discount of £4404.72. So that's around 75% discount by my reckoning

It may also be worthing noting that they have only had the debt for two months.

happy_bunny_2

When was it taken out? MBNA were terrible with keeping agreements for a while. No sign of mine from 2001, such a lost cause they even admitted it in a letter, which is rare.