Telling lies to DCA's

DanFish

Hi,

I did post this in my other thread but thought maybe it needs to stand alone.

I offered a DCA a full and final settlement offer of £60 for a £200 debt. They replied saying that they could accept £140 but maybe able to consider my original offer dependent on a Financial Statement from me.

I'm inclined to manipulate the figures on my financial statement to show that i can only afford token payments of £1 to my creditors in order to see if they'll go for my lower offer.

I know it's a bit naughty but how many lies to DCA's tell consumers?

I just want them to go away as soon as possible and think a 70% reduction would go a long way to me reaching my debt free target.

Any thoughts?

rizla_king

You may be in danger of http://www.legislation.gov.uk/ukpga/2006/35/section/2

FireWyrm

I take Rizla's point, but in practice, they'll never know. The DCA cannot demand any personal information, not do they have the power to inspect every detail of your financial affairs. You could easily alter the figures by inflating here and there to show what you want - it is a tactic, just as their threatening letters are a tactic. They are under no obligation to accept your proposal just as you are under no obligation to pay any more than you can afford. You make an offer, they decide whether they wish to avail themselves of it or not.

Just make sure you get a true FULL AND FINAL and not a trick where they 'partially settle' and sell it on.

National_Debtline

Hello there,

It's important to bear in mind that it is generally the case that full & final settlements are not generally binding in the contractual sense. The reason being is that part-payment of a debt isn't generally regarded as 'good consideration' for the full balance - although there are a few ways to overcome this.

Those making settlements would usually be protected by a principle called 'promissory estoppel' - which means that a creditor should not be able to go back on their promise to you that they accept your settlement offer. This is an 'equitable' principle - which means that both parties should come to the arrangement 'with clean hands'. As the others have said it could be unlikely that the creditor will find out about the financial statement but if they ever were to, you may not be able to rely on an estoppel argument.

Much of this is likely to be academic, of course, as there isn't a requisite that the creditor needs to see any of your personal information - unless they make it a requirement of the settlment arrangement.

Best wishes,

David @natdebtline.

Jane_gs

National_Debtline wrote: »

H The reason being is that part-payment of a debt isn't generally regarded as 'good consideration' for the full balance - although there are a few ways to overcome this..

What are some other ways around this?

and how could this type of below offer turn out (from the creditors eyes)
=, if they don't accept a £1 token, how about offering £15 per month ?
, (by direct debit)

then after 6-7 months of them receiving this, can they see that an effort is being made to £15 a month?

DanFish

The financial statement shows that i can only afford £1 a month to each of my creditors so a £15 a month offer wouldn't be possible if i send it as im saying to them that is a true reflection of my income and expenditure.
I suppose i shouldnt lie, like it was said before it's fraud and i never really looked at it that way.
I'm looking at it just about getting rid of my debts as soon as possible and if these creditors are willing to offer discounts on outstanding balances then i need to do all i can to get as much knocked off as possible.

National_Debtline

Jane_gs wrote: »

What are some other ways around this?

Hello, here are a few examples:

· A payment via a third-party

A payment via a third-party in satisfaction of the originaldebt would be binding on a creditor. This payment would have to come directlyfrom a third-party, it cannot be the debtor’s money which has simply beenpassed on. The reason this would be binding is that a separate contract iscreated via the third-party and would be deemed to be good consideration.

· A formal ‘deed’ can be drawn up via a solicitor

· You could send a ‘gift’ along with yourpart-payment.

A gift could be anything at all, possibly even something worthless. The reason this would be binding is that the gift may offer a‘practical benefit’ and would therefore be regarded as good consideration. I'm not sure how this might work with a creditor/dca though!

Bets wishes,

David.

sourcrates

DanFish wrote: »

I know it's a bit naughty but how many lies to DCA's tell consumers?

What, a DCA telling lies ? wash your mouth out with soap young man, I wont hear such slander from these fine upstanding pillars of our community !!!