How to offer settlements?

Whatelse

Hi all. We have recently come into a bit if money, not much, but enough to try and pay off some of our debts ( that we have had for years) . At the monment we pay just £10s each month to 6 different cards ( debt collection companies). The amount owed is 3 times more than the amount we have!

We have tried offering them all an equal % but they have come back saying no! Where do we go from here? The lump sum is going down fast... With just living! Any advise would be appreciated.

Are there any companies that will help us negociate a settlement figure?

Thanks in advance

rockm87

Hi and welcome!
well first off I would say you need to sort your finances out, you obviously have a problem with just existing on the money you earn anyway.

I would recommend completing a Statement of affairs to get to grips with your financial situation.

http://www.stoozing.com/calculator/soa.php

Alternatively if you are really struggling with payments, call Step Change or National Debt Helpline for advice.

Tixy

How have you been making the settlement offers?

By phone? in writing?

That said if you are using up the lump sum on normal living costs then I would consider what you are going to do if the offers are accepted and the money spent?


If these debts are all quite old and are with debt collection companies - have you ever checked whether they hold the correct paperwork for the debts? If they don't then they should be much more likely to accept low F&F offers.

sourcrates

Hi,
It sounds like your still not living within your means if the "settlement" money is been used up on everyday living expenses.

Sounds like you need to "check" your spending pronto, before all the money has been wasted.

You should do CCA requests to each creditor (or DCA) as a matter of course, before making any offers to settle.

If correct paperwork cant be produced, the debt may not be legally enforceable in court, so a creditor may either settle for much less than they normally would, or you could not pay anything at all.

First thing is to rain in your spending though, then, paperwork dependent, make any settlement offers in writing, using the National Debtline letter template below :

https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Full-and-final-settlement-offers-(sole-name).aspx

Whatelse

Hi thank you all for your input ... In answer yes we put the offer in writing! We are spending over our means because of they payments to debters not much else ( apart from being a bit carless) Just desperate to stop these debts. Not sure about the legality of the debts etc - is there a company that can help negotiate.,?

sourcrates

Whatelse wrote: »

Not sure about the legality of the debts etc - is there a company that can help negotiate.,?

No,

You don't need any 3rd party help to write a letter.

You simple write to them with a CCA request first off :


quote:
(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.

Then, dependent on what you get back, you write to each creditor making an offer to settle using the template letter from the National Debt line website via the link in post 4.

Whatelse

Hi we wrote the letter as you said! We have had a reply from two of the debt agencies stating they dont hold the information and are contacting the original debtors to obtain the credit agreement.

What do we do if the debt collection agencies cannot get the information within the timeframe?

Thanks in advance

dobbollah

if they can't supply it your not legally obliged to pay.....but they can still default you....but if they have already then as i understand no real harm can come from not paying.

If they cant supply that information, they cant enforce collection

Whatelse

So they have to produce the information within the time frame? M

sourcrates

Whatelse wrote: »

So they have to produce the information within the time frame? M

Forget the time-frame, there just guidelines, it will take at least a month to get the required information from the original creditor.

While they do this, the account will remain, temporarily unenforceable, until such time as the documents are made available to you, however long that may be.

Just wait and see what happens.

dobbollah

its taken well over a month for me and ive still not been told yes/no to whether than can be supplied......its frustrating but just gotta wait it out....