Full and Final offer help

leedslad5501

I have an outstanding debt, which defaulted in 2010 for around £1500. I received a PPI refund of £800 and offered the whole amount as a full and final offer to which I was responded that they could not accept it and would be unwilling to give me any discounts and want the balance in full. I have maintained payments at a small amount of £10 per month since at least 2012 and at the current rate will take another 12 years to pay.

Its been suggested to me by a friend the reason they won’t accept offers is because im providing a steady income for them, any ideas how I could convince them to accept .

[Deleted User]

You'd probably need to get to the stage where they sell it to a DCA.

But that obviously comes with its own set of problems.

leedslad5501

Thanks sorry forgot to mention the debt is sold a DCA lowell to be exact and i thought just over 50% offer at this point was quite generous as most other DCA will settle between 30+50 %

teffers

I had a similar situation with Lowell around 5 years ago. There seemed to be no real logic to them.

I offered a !!!!!! of 80% and they declined, accepting a small monthly payment instead.

After a few years they agreed to lower offer and settled the debt. It worked out worse for them in the end.

My best guess is that the debt accounts have a 'sell by date' and they only start wanting to clear them when it reaches that point.

Before then, they're happy to accept a ticking over payment as a certain percentage of people may just pay the full amount during that time.

A bit like a debt investment if you will.

Just leave them to it but be VERY firm that the offer you have is time limited and unless your circumstances change dramatically you won't be increasing the monthly payment, they'll ask and often, just say no.

You have the power in this situation. Good luck, don't get dis-heartened, just set up the SO (you set this up, not them) and forget about it for a while.

National_Debtline

Hi

It comes down to whether the DCA feel the reduced lump sum is going to benefit them more overall compared to the amount they’ll get in the long run. Remember they’re going to have running costs to pay over the next 12 years too. That decision is going to be at their discretion. Your offer does sound like reasonable amount in the circumstances though, and other people have had success with the same percentage.

Did you make your offer on the phone or in writing? If you did just make the suggestion over the phone it may be that the person you spoke to didn’t have discretion to accept reduced payments, so try it in writing.

Teffers' suggestion of stressing that your settlement offer is time limited is a good idea.

James
@natdebtline

leedslad5501

I imagine so I did re email them to ask them to reconsider but the answer is still no, they possibly prefer to have regular payers. I was hoping to clear the debt soon as by the end of July I will have no negative data on my credit file, my partner already has a mortgage and I would prefer to be BAD DEBT free so we can get a mortgage together next but I will ride it out as the debt is nearly 6 years past default they may change there mind

leedslad5501

Thank you I did send an email, I may try posting next time and see if it gets to someone different. They are aware the offer is time limited as I have stated in my email they had two weeks to respond to my offer or I would use the money to pay other debts in full, I would have personally preferred to clear this larger debt with the money, but it will still go to good use. They just replied saying they do not add interest so not to worry about paying it over a longer period.

daniel86_2

Had a similar situation my self lately they are really hard to negotiate lower settlements with