Full and final settlement through Payplan

DMT72

I am currently in a DMP with Payplan and owe approximately £28444. This is due to be re-paid in 2025!
A relative has offered some money to help clear my debts and this will be up to £12000. I'd love to try and clear my debts completely with this money.

Does anyone have any experience of Payplans success at securing full and final settlement offers and what discount they may be able to secure?

Thanks for any advice

Tixy

People generally suggest that you make settlement offers yourself rather than involve your DMP company.

What discounts your creditors are likely to be willing to accept will depend on whether the debts are still with original creditorss or sold on, how long it will take to clear at the current rate of repayment, whether they think your circumstances will improve before then, whether your creditors hold the correct enforceable paperwork etc.

If you do make your own offers then national debtline have a useful factsheet and template letter, however you may want to amend to make it clear that the money is from a relative who will only offer it if it clears a debt in full.

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

sourcrates

Yes always best to do this kind of thing yourself, without involving your DMP provider, get everything in writing, this is most important, as you need proof of what has been agreed.

You should do CCA requests to all accounts first to check for paperwork issues, as they will be more likley to part settle if there are.

Gavwolves1

Hi I have been on a dmp for close to 15 years! 45k total initially. Now down to 19k. Due to how long I have been paying do you think they would accept 4k to 5k settlement? As a family member has offered me this amount to clear them? Thank you

Deep_In_Debt

Gavwolves1 wrote: »

Hi I have been on a dmp for close to 15 years! 45k total initially. Now down to 19k. Due to how long I have been paying do you think they would accept 4k to 5k settlement? As a family member has offered me this amount to clear them? Thank you

Hi

No harm in trying at all, especially given the amount owed and length of time.

National Debtline website has a good template letter you can use and some advice on what to offer creditors.

Good luck.

Gavwolves1

Thanks for the advice will give it a try!

dobbollah

as sourcrates suggested do the CCA requests first, it can give you a stronger position to negiotiate, im in the process right now

Gavwolves1

Ok point taken thank you. Does anybody have experience of running a dmp for as long as I have and if they will accept a 20 percent full and final? Surely they must consider it more favourably than running the small payments for another 15 years?

sourcrates

Gavwolves1 wrote: »

Hi I have been on a dmp for close to 15 years! 45k total initially. Now down to 19k. Due to how long I have been paying do you think they would accept 4k to 5k settlement? As a family member has offered me this amount to clear them? Thank you

5k to settle 19k sounds a bit like wishful thinking, however, stranger things have happened, so it's always worth a try, but I would CCA each relevant account first, that way you will be more aware of your position with regard to enforcability.

I admire your resolve, as 15 years on a DMP would have done me in, you stand a much better chance of your offers been accepted if the requisite paperwork in not obtainable, I would assume all your debts pre-date April 2007, so there's a good chance this will be the case.

Gavwolves1

Ok thank you for your advice. Just a question I take it ifI went through pay plan for the cca they wouldn't do this on my behalf? Also if they don't accept the full and final does this put the future dmp arrangement at risk? Thanks again

sourcrates

Gavwolves1 wrote: »

Ok thank you for your advice. Just a question I take it ifI went through pay plan for the cca they wouldn't do this on my behalf? Also if they don't accept the full and final does this put the future dmp arrangement at risk? Thanks again

Why would you want them to ?

Its simply a matter of printing off a letter, add the £1 statutory fee to each request, put a stamp on it, and post it to whoever is administering the accounts now.

I doubt it would make any difference if your offers were rejected, your current arrangement would continue.

CCA template letter here :


(Your home address)
Date:
To:

Dear Sir/Madam

Account/Ref No:

With reference to the above agreement, I/we would be grateful if you would send me/us a copy of this credit agreement and a full breakdown of the account including any interest or charges applied.

I/we understand that under the Consumer Credit Act 1974 [sections 77-79], I am/we are entitled to receive a copy of any credit agreement and a statement of account on request.

I/we enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974.

I/we understand a copy of any credit agreement along with a statement of account should be supplied within 12 working days.

I/we understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

I/we look forward to hearing from you.

Yours faithfully



Your name.
Print you name rather than use your normal signature, since some DCA's have been known to scan it so they can mock up a fake CCA.

For the same reason, the statutory fee of £1 should be a postal order.