Settlement letter for HBOS

dobbollah

I am currently penning a letter to HBOS and was looking for some feedback from those here.....the account has been defualted and the balance is at £4137. I'm on a DMP and their monthly payment is £38.31.

Heres the letter........Advice always welcome

Dear Sir/Madam
Without Prejudice
Account No: xxxxxxxxxxxxxxxxx

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to pay the money which I owe in full.
I am a full time student, and my husband is a public sector worker, who as a result of the austere measures the government has had in place over the last 5 years means his pay has essentially decreased by 12% by virtue of the fact that he has received 2 x 1% pay rises in 5 years and the rate of inflation has been averaging at 3% during that time.

However, I can raise £1700 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/we will be released from any liability.
I also request that, if accepted, you make an entry on my/our credit reference agency files relating to the above account as having been paid and the account closed and REMOVE the default status placed on the account.
Payment can be made on the 28th May 2015 if you find this offer acceptable and on receiving your written agreement of this offer and method of payment.

I look forward to hearing from you.

sourcrates

Hi,

Letter looks ok, cut out the waffle about husbands pay, stick to the facts.
How old is the debt ? How long defaulted ? Do they have paperwork for this debt ?

Depends on the answers to the above as to weather they will accept or not.

Doubt very much they will remove the default, but you can but ask !!!!

dobbollah

also the offer is 40% of the balance, would it be worth starting ar 25%..?

the arrears started in June 2011 the default is due to expire december 2017.....

as for wheter they have the paperwork, i dont know.....it was a credit card ....would it worth pursuing the paperwork issue first as I have read it might be possible to have the default removed that route.....

sourcrates

dobbollah wrote: »

as for wheter they have the paperwork, i dont know.....it was a credit card ....would it worth pursuing the paperwork issue first as I have read it might be possible to have the default removed that route.....

If the account was opened online, then different rules will apply, and a screenshot of a tick box will probebly suffice, depends when the account was opened, if pre 2007, then worth asking for paperwork, if more recent, probebly not.

I would start lower yes, you can always go up.

dobbollah

the account was originally opened in january 2004......

i'll bosh the letter off them at a 25% offer, if they refuse the default there are others on the DMP I can put the money into.

If they refuse I'll push the paperwork side of things.....

sourcrates

dobbollah wrote: »

the account was originally opened in january 2004......

i'll bosh the letter off them at a 25% offer, if they refuse the default there are others on the DMP I can put the money into.

If they refuse I'll push the paperwork side of things.....

I would defo do the CCA request first on a debt from this long ago, no paperwork may mean the debt can't be enforced, so may settle for much less than they normally would, always worth doing this first !!!!!

dobbollah

and if they cant supply the required paperwork on the CCA request (just saw the letter on another thread) then they have to remove the default..?

sourcrates

dobbollah wrote: »

and if they cant supply the required paperwork on the CCA request (just saw the letter on another thread) then they have to remove the default..?

Err, not nessessarily, but would give you further leverage to negotiate on that point, as well as a lower settlement figure.

dobbollah

http://www.learnmoney.co.uk/credit-file/remove_default_notice.html

was reading this, seems along the same lines....

sourcrates

dobbollah wrote: »

http://www.learnmoney.co.uk/credit-file/remove_default_notice.html

was reading this, seems along the same lines....

Exactly, persistance, paperwork issues, sheer luck, goodwill ?

Did I mention persistance ? Lol

dobbollah

the CCA request is going in the post tomorrow....lets see what happens in the next 12 days

if they dont provide it in the 12 days......whats my next course of action...?