Final settlement advice.

tomandjerry

Dear all,

I posted in a different thread, but was advised to come here...
My PPI claim with Lloyds has been successful :j:j:j and want to pay off the outstanding balance on my DMP. Lloyds contacted me this week about the payment, which I partially agreed to. The payment is scheduled for 12th January 2016. My balance on the dmp statement is different to what the bank said . I contacted StepChange whom I have my dmp with and they suggested to contact the bank re: actual loan and cr card balance/ statements.
My questions are: could a collection company give me all the statements or will the bank be able to do so? What would be the fastest way to contact either of them? Could I cancel the payment due on 12th Jan?
Do I have to pay the whole outstanding sum or can I offer a final settlement?

Many thanks,
taj

sourcrates

Taj,

Everything is negotiable !!

It depends who owns your accounts, as to who you contact.

Whoever you have been paying will usually be the owner, you should write to them first, asking for a full statement of your account, and current outstanding balance.

Once you have this info, using the excellent template letter, available from the National Debtline website, write to them again with your offer of settlement, how much this is you will need to decide yourself.

You must do this in the correct way, in writing, using specific wording, in order to protect yourself from future problems arising from the settlements.

You can stop your payments when this process is underway to avoid overpaying.

tomandjerry

Thank you sourcrates,

I believe I need to contact Lloyds first to stop the payment on 12th Jan 2016. How long does the process of settling the debt usually take?
Shall I contact StepChange again to stop a dmp from January 2016 while dealing with this?

Thanks,
taj.

sourcrates

tomandjerry wrote: »

How long does the process of settling the debt usually take?
taj.

That's anyone's guess taj,


Some creditors are quick off the mark, others drag there feet.


You say your PPI refund is coming from Lloyds, is it them you also have debt with ?


If so, you may find they will clear the balance you owe to them first, if they still own the debt, then give you any remainder, is this likely to be the case ?

tomandjerry

PPI is from Lloyds and the debt (a loan(got the ppi from) and cr card) is with Lloyds as well... paying through a dmp. It looks they want the full amount for both. They are going to pay full PPI.
I have another cr card with Halifax (with dmp as well) though.
Have to dig out all the paperwork...

sourcrates

tomandjerry wrote: »

PPI is from Lloyds and the debt (a loan(got the ppi from) and cr card) is with Lloyds as well... paying through a dmp. It looks they want the full amount for both. They are going to pay full PPI.
I have another cr card with Halifax (with dmp as well) though.
Have to dig out all the paperwork...

There is an archaic law which banks tend to use from time to time, called the right of set off.
This basically means if you owe a bank money, and you have a credit balance in any other account held in your name, with the same bank, they can take that money to cover your debt.

Do not be surprised if the bank settles your outstanding debts out of this PPI refund first.

tomandjerry

Hi sourcrates,

I received the full amount last week :T:T:T. WOW!!!
I can transfer the money (not the whole amount) between banks, can't I?
I need to send F&F letter and wait for an answer... not until beginning of 2016 I guess.

taj.

sourcrates

Well done !!
I would (very quickly) transfer this money into another account, not held with Lloyds, or any associate bank, just to be safe.

tomandjerry

Would Natwest be ok? And the whole amount? I do banking online, is it a safe way to do it? Thanks.

sourcrates

tomandjerry wrote: »

Would Natwest be ok? And the whole amount? I do banking online, is it a safe way to do it? Thanks.

You should be ok with Natwest.

https://www.lovemoney.com/news/15729/who-owns-your-bank-or-building-society

tomandjerry

Even if I put the Natwest account details on Lloyds account online? They cannot reverse it, can they?