Debt Management Plans and potential settlements

syvci

Hi Guys,

I have been in a debt management plan with payplan since Late 2010. I make regular payments and am not harassed in any way for money via letter or phone. I have found them useful but am now becoming much more pro-active in contacting creditors myself. This is my current state of affairs.

Barclays Bank Plc – £642
Debt Managers LTD – £ 3,243
Link Financial Ltd – £6,990
Moorcroft Group Plc - £2091
Natwest/RBS – £1,090
Natwest/RBS - £ 2,671.21
Paragon Personal Finance Ltd – £ 4,549
Wescot Credit Services - £ 3,802

I have wrote to Natwest, Barclays, Moorcroft and Debt Managers Ltd with full and final settlement offers. The Money will be given to me by a loved one and wont need paying back. It isnt a large amount of money (1000 pounds) but ive decided to try my luck and have offered the above 10% of the total balance eg, I owe Moorcroft Group £2091 so have offered £200 to settle the account.
I have also sent my income and expenditure information that I provide payplan each year. Has anybody had success with offers like this yourselves? I have several defaults that go back 4 years so my credit file will look better in a couple of years. I just want to try and settle the accounts so i can have a fresh start!

I have also read on these forums about CCA letters. I thought that it wont hurt me to send these requests as it would let my creditors know i'm serious about addressing my debts and may strenghthen my position when negotiating settlements. Are there any negatives to requesting a CCA? I have printed the letters but have not sent them yet. I thought at worst, it would help me understand my accounts, interests and charges that have been applied so again i may be able to negotiate their removal. Please let me know what you think and what the best long term strategy for negotiating with creditors incuding DCA's

Cheers

sourcrates

Hi,
No harm whatsoever in doing CCA requests, it's your right, under sec 78 consumer credit act.

Don't forget making full and final settlements can be a matter of negotiation, so don't give up if your first offer is refused.
Make sure your letters state that if your offers are accepted, you will not be chased for the remainder, some people forget to add that paragraph and a few months down the line, the unpaid portion of the debt gets sold on, and the dance starts all over again with another DCA.

syvci

Thanks for this. I have used a template to ensure everything is worded correctly. I also enclosed a paragraph explaining my circumstances and the facts that im about to have child and therefore will proababy have to reduce my monthly pyment. it is my hope that they will take this into consideration.

Just a thought but if i started paying less each onth are they more likley to accet a lower full and final settlement?

sourcrates

syvci wrote: »

Just a thought but if i started paying less each onth are they more likley to accet a lower full and final settlement?

hard to say, they will be looking for a solution that gives them the best return, they are more likely to accept a one off cash offer to settle, rather than a similar amount paid over a number of years.

Are your debts fairly old ? If so defenatly do CCA. Requests first, as no paperwork would mean they would settle for much less than normal.

syvci

Sending CCA's today. Do they need to be sent recorded delivery?

The defaults are from around 4 years ago. Ive had some of the cards for 10 years. Ive had the barclaycard a very long time. If they fail to provide the documents whats my next step?

Also, if they do provide and i see lots of interest and charges can i ask them to be wipped? I think i read that all charges and interests must stop once an account has been defaulted.

Cheers

syvci

Another question. I have been making payments for 4-5 years. Are banks less likely to accept a low final settlement offer? does the length of time paid and potential time left to pay make a difference?

sourcrates

syvci wrote: »

Sending CCA's today. Do they need to be sent recorded delivery?

If they fail to provide the documents whats my next step?

Also, if they do provide and i see lots of interest and charges can i ask them to be wipped? I think i read that all charges and interests must stop once an account has been defaulted.

Cheers

You can send recorded, but will go by bulk mail, so don't expect a signature.


No, that's not correct, creditors are not obliged to stop interest or charges, you can ask them to stop them, but they are under no obligation to do so.


As I said before, a creditor wants the best return, so will depend on there own companies policy's.

syvci

So if a creditor passes on the debt they can charge any interest they like?

sourcrates

syvci wrote: »

So if a creditor passes on the debt they can charge any interest they like?

No, sorry, you misunderstood, or I did lol, I was referring to the original creditor, if a debt is sold on to a debt collection agency, then they can only add interest and charges if the original agreement allowed them to do so.

99% of consumer credit agreements will not allow this, so the balance that gets sold on, is what they will come after you for.

Hope that's clearer lol��