Starting out with F&Fs...

SRT81

Posted this originally in the F&F thread from a while back, but since I'm new here I thought it might be better to start my own thread and delete the other post...

From what I've read here, plus some advice from an IFA that my wife knows from work, I've begun the process of offering F&F settlements to my creditors on the basis of using money offered by my in-laws to help me try and get it all sorted out.

All my debts are years and years old (oldest over ten years, most recent about five years), and on pretty much all of them I got into trouble after being made redundant (five times in ten years) and I've just been slowly chipping away at them.

Since taking out my last loan (payday loan with Wonga through sheer desperation and stupidity) in 2009 I've never applied for more credit. I don't have credit cards, store cards or even an overdraft. All my effort has been going into reducing my debts and improving my credit rating.

I've been in a DMP with Gregory Pennington for a while (didn't know about StepChange until recently, wish I had!), and their settlements team originally told me I'd probably only get 85%–80% settlements on my debts at best, plus they'd take a cut of any savings offered.

Going direct, with everything done in writing, I seem to be getting a little bit of joy without GP’s help. Sent my first offer letters out on the 3rd of March, progress so far…

MBNA
Offered £340 (30%) on a balance of £1,100. They wanted £742 (65%). Counter-offered £513 (45%). Waiting for a reply.

Moorcroft
Offered £154 (30%) on a balance of £513. They wanted £462 (90%). Counter-offered £256 (50%). Waiting for a reply, I’ve heard Moorcroft can be a pain in the backside, has anyone else dealt with them?

Wonga
Offered £240 (30%) on a balance of £798. They wanted £680 (80%). Counter-offered £400 (50%) which they have accepted as F&F settlement. Just waiting on confirmation of a few points in my offer letter before paying them off.

Empingham
Offered £140 (30%) on a balance of £465. Accepted as F&F settlement on first offer.

Fredrickson International
Offered £68 (30%) on a balance of £229. Got a letter back from them saying they couldn’t accept that amount, but want me to call them to discuss my offer. I’ve written back to them to say that I’d prefer all communication to be in writing (so I have records) and I’m waiting for a reply. Anyone else dealt with them?

Remaining creditors who I’m waiting to hear from are listed below, just wondering if anyone has dealt with them and has any further advice?

– Mercers
– Debt Managers Services
– Payday Express
– Credit Resource Solutions
– Capital Accounts Receivable Management

Thanks!

National_Debtline

Hello there,

Congratulations on going it alone, it looks like you are absolutely on the right track. Full and final negotiations can often be a bit of a cat and mouse game, so it's great that you're negotiating and not accepting the first offer put to you.

You may already know this but Mercers is an in-house debt collection agency for Barclays. I think they may also collect for Barclays-affiliated companies also. You may find that you get a much better reduction offered by those firms that have actually bought a debt from the original creditor - they often buy debts for a percentage of the original amount.

Some of our callers have had success in getting great settlement offers by requesting the paperwork such as the credit agreement. The key reason behind this is that if a creditor no longer has the paperwork (this is relevant only for Consumer Credit Act regulated agreements such as loans, credit cards etc. taken out prior to April 2007), or if there are significant issues with the paperwork, the debt could be legally unenforceable. This means that if they were to sue for their money there could be the potential to defend it. In a nutshell, if there are issues with the older agreements it may convince a creditor to consider a low settlement rather than go through a long-winded process of trying to get money from you.

You can read more about requesting information via the following fact sheet:
https://www.nationaldebtline.org/EW/factsheets/Pages/39%20EW%20Credit%20agreements%20-%20getting%20information/Default.aspx

Another useful tip is that the payments should be made by the in-laws, a payment made by a third-party is more binding from a contractual sense. In addition, do keep copies of the acceptance letters from the creditors.

Here's a link to our full and final settlements fact sheet.

Best wishes,

David @ NDL.

SRT81

Hi...

Yeah, I'd found out that Mercers are Barclaycard's in-house agents. Not heard anything back from them yet, but hoping they'll come in with accepting something like 80/90% to give me a starting point to negotiate with them like I've done with the others so far.

Thanks for the info on the credit agreement request. I'll look into that!

I've received letters yesterday from Debt Managers (Services) regarding my two Barclays accounts that are with them (an old Graduate Loan and an overdraft).

They've included an income/expenditure form with each, and want to know where I'm raising the money for my settlement offer.

Thing is, they know full-well what my income/expenditure is, as they receive regular updates from my DMP, and I've already stated in my first offer letters where the money is coming from.

Just seems like sending them information they already have!

With it being for two accounts, should I write two letters back and fill in both forms, or is it possible to double-up and just do one form and one letter for both accounts?

National_Debtline

SRT81 wrote: »

With it being for two accounts, should I write two letters back and fill in both forms, or is it possible to double-up and just do one form and one letter for both accounts?

Hi again SRT81

The fact that you've received separate letters regarding two debts to the same company may well be due to data protection requirements. I would be inclined to do two sepaarate letters - they will be identical save the figures involved - but you can send them back in a single envelope - stamps aren't getting any cheaper!

Dennis @NDL

SRT81

Thanks Dennis.

Moorcroft just called me and have agreed to settle at £380 on a balance of about £510, so 75%-ish.

Told the bloke on the phone what I'd need in writing before making any payment, he agreed and the letter's going in the post for me today.

Once I've checked that over I'll pay them off.

Three down, ten to go!

SRT81

After writing back to Fredrickson to say I'd only conduct communications in writing they've agreed to a 70% payment for a F&F settlement. Balance is only £229 so I'm prepared to accept that.

MBNA won't budge from £742, but that's still a better figure than the £1,100 outstanding on the old account.

I've emailed Wonga about confirmation of my terms in accepting my offer of 50%, still waiting to hear from them. They were pretty quick in responding when we were negotiating offers so I may need to give them a nudge.

All in all not going too badly, and a lot better than Gregory Pennington's prediction of what offers would be accepted!

Calling StepChange tomorrow to see if I can get my DMP transferred to them, and cut out the admin fees I'm being charged with GP!