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How much to offer in settlement?
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On_my_way
Posts: 405 Forumite
Hi
I have a £900 Overdraft left with Lloyds that has been paid on a DMP for 4 years now. They have only received about £50 per month.
I want to offer a full and final settlement figure, do you think they will accept 20%?
I know that there will be many people who are very against F&F but I want to get this finally gone even if it is selfish not to pay the full amount.
All advice welcome.
I have a £900 Overdraft left with Lloyds that has been paid on a DMP for 4 years now. They have only received about £50 per month.
I want to offer a full and final settlement figure, do you think they will accept 20%?
I know that there will be many people who are very against F&F but I want to get this finally gone even if it is selfish not to pay the full amount.
All advice welcome.
0
Comments
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No, they wont accept 20%.
As the debt is still with the original bank, they will have a different policy regarding settlement offers, than say a DCA would.
I would say an offer of around 75% of the outstanding balance would be acceptable.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi
Full and final offers are always looked at on a case by case basis, and will depend on your circumstances and the attitude of the creditor.
Having said that, I think Sourcrates is right that the bank is likely to view the offer differently to a debt collection agency who may have bought the debt for a low amount anyway, and 20% seems like a low offer.
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
It is with Blair Oliver and Scott but I think that is basically a department at Lloyds!0
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It is with Blair Oliver and Scott but I think that is basically a department at Lloyds!
Oh, depends then if they are just acting for Lloyds, or if they have bought it outright, i believe they are an "inhouse" DCA, so could just be acting for them.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Thanks for your advice. I am going to draft a letter and see where I can get with it.0
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There's no harm in making them an offer to see how they respond. Make sure they accept in writing before you make the final payment.
We have a full and final sample letter on our factsheet here if you need it:
www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx
James
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Thanks very much for the link. I shall use that tomorrow and will do it all in writing - thanks.0
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