Asking DCA's what they would accept as a F&F settlement

AngryDog

Can I ask my DCA's what they would accept? Having been turned down for an offer, can I start to negotiate with them? Can I do this before sending a SOA to them?

Tixy

Its a negotiation where neither wants to tell the other the maximum/minimum. So you could either try a small increase in your offer or could ask them.

But if they tell you anything it may well not be the lowest they would really settle for.

AngryDog

Thanks Tixy. I started at 10%, I'll see how they react at 20%. Best print off and send the letter in, as I assume calling them is a complete no-no?

Tixy

I think written is best.

However you could try calling and see what they say (assuming you are confident you won't be bullied by them in to paying anything on the phone or offering more than you can afford).

The most important thing is you have written confirmation from them of the F&F offer before you make a payment to them (and I personally wouldn't accept email for this).

AngryDog

Thanks Tixy, I will write to them. While I wont be bullied, they will probably want to go through a SOA on the phone with me, and I dont really have time to spell it out verbally, it's easier to write it down.

FireWyrm

As Tixy says, it is a negotiation from the very beginning and you have every right to do this. When you are crafting your letter, be sure to highlight how long it will take at the current repayment schedule and emphasise that they can get some money at least more quickly. When and if you get a response, ensure that the Full and Final is exactly that, nothing less. DCA's have been known to 'agree' to what you think is a F&F only to sell on the remainder and the customer has to start the same hassle all over again. Full and Final means just that in law. It is finished and you cant be pursued any further.

Oh, and then guard the acknowledgement letter you will require from the DCA with your life. You may need it in future.

AngryDog

Thanks Fermi. My previous ones will be fun if they come knocking. I've move house several times and changed phone numbers as well since then haha.

Letters, I'm sure they're somewhere, the joys of moving house and putting everything into storage!

Monkeyballs

Hi,

If you're paying peanuts then they'l likely accept a lower offer but if you're paying a decent chunk then it will likely be more difficult to get them to accept a low amount as it's probably not as beneficial to them...

You can speak to them if you feel up to negotiating but I've tried and it was like pulling teeth I'd suggest using email to negotiate ad then get a written offer once you've agreed on an amount

Chances are they'll want to get as near to 75% minimum as they can but keep talking, you don't have to accept anything

Good luck!

MB

moohound

Mine took between 30% (MBNA still with original lender, first offer no negotiating!) to 90% (1st Credit DCA who would not budge)

My DMP had been running for 10 or 11 months, and it would have taken 10 years to pay it off if I had carried on.

jamess55

There is no definitive answer, because it depends on whether the debt has actually been sold to the 3rd party or whether they're just collecting for the original creditor. In the latter case, further variables come into play such as the amount of any monthly payment you've offered, how much time is left on the debt and how regularly you're making payment.

After all, a DCA probably won't accept a reduced F&F offer today if they're going to get all their money later (even if that's in 1 or 2 years' time).

harveybobbles

OP = no need to send them a SOA.

Anyone can request to see it, but only a judge can ACTUALLY see it.

How old is the debt?
when was last payment?
What type of debt is it?