Paying off debts - Loans

Fridge03

Hi all,

Looking for some advice.

A few years ago, I got myself into some serious mess. Payday loan cycle, credit cards...name the cliche, I did it.

Anyway, after a long old slog of saving, paying off and being frugal I am now in a position to become completely debt free. Hurrah! First stop, the overdraft has gone!

However, I'm actually dreading having to deal with some of the companies I owe money to one last time as I've heard what nightmares they can be.

So, whats the best way to deal with these companies? And what am I entitled to in regards to demanding a letter confirming the debt has been satisfied? I need my credit file to be squeaky clean so I can start to build for the future.

The companies I need to deal with are-
MEM consumer finance
Safe Loans LTD
Active Securities Limited
Bt Consumer
Capquest Investments Limited

I also have an outstanding CCJ, which will also be cleared. I have no idea who it's owed to though, so am I right in saying that I have to contact Northampton County Court/Registry Trust to find the details?

Thanks all.

National_Debtline

Hi Fridge

Good to hear things are moving in the right direction for you.

I should deal with these companies purely in writing if I were you, especially where it is a question of wanting to settle up once and for all. There is less danger of things resurfacing at a later stage if you have a clear paper trail showing the debt is satisfied. You should insist on some form of written acknowledgement/receipt to confirm settlement. You should also expect your credit file to be amended where necessary by the creditors concerned and changes should normally appear within a month all being well.

Re: the CCJ, you should contact the court in which it was entered (so most likely Northampton), as Registry Trust don't normally have details of the claimant.

You may find our credit referencing fact sheet useful if you haven't already read it:

https://www.nationaldebtline.org/EW/factsheets/Pages/05%20EW%20Credit%20reference%20agencies%20and%20credit%20reports/Default.aspx

Good luck

Dennis
Twitter: @natdebtline

Fridge03

Brilliant, thanks for your advice. Really useful.

Fridge03

As I need to write to these companies anyway as I have don't have account/reference numbers for them, do you think it's worth offering in the letter a reduced final offer to settle the accounts.

It's a bit cheeky, but in the interest of saving money....is it worth a shout?

Fridge03

So I guess the best route would be write a letter to these companies using a template provided (as I don't have details of account numbers/ID's/etc) and at the same time offer them a reduced amount?

I have checked my credit reports with all 3 agencies so have based what I owe of those.

Fridge03

Anyone? Is this a good route to go down?

National_Debtline

Hello there,

Many of our callers have been very successful in obtaining 'full & final' settlements. This could well be a good route to consider. We have a very useful fact sheet that covers these - You can find it here:

https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

Very best wishes,

David @ National Debtline.

DevCoder

Do note that a F&F settlement will normally be recorded as "partially satisfied"

Fridge03

krisdorey wrote: »

Do note that a F&F settlement will normally be recorded as "partially satisfied"

Will that impact on my credit report? Do lenders see that as a negative?

Fridge03

So I've sent the following letter out offering a F&F for all my debts. To be honest, I don't expect much. If they don't accept and ask for full amount I now have to money to pay them so not the end of the world. I'll just be glad to be done with it all and start my new life of not hiding and shirking responsibility anymore!

Dear Sir/Madam

Without prejudice

I write with reference to the money which you are claiming on the account in my name. Previous address, XXXX

I can confirm that I am unable to pay the money which I owe in full.

This is due in large part, to me being made redundant in February of this year as well as having other financial difficulties which have been made worse by stress-related health problems.

However, I can raise £XXXX and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you make an entry on my credit reference agency file relating to the account as having been paid (balance £0.00), fully satisfied and the account closed.

Payment can be made within 7 days of receiving your written agreement of this offer and method of payment.
I request that all communication is in the form of written letter.

I look forward to hearing from you.

Yours faithfully