PayPlan DMP needs to GO!!!!

Rjhsteel

We have £21k worth of a Dept management plan and we need it gone!

I've read somewhere you can offer a lump sum to each creditor which can be as low as 30p to the pound.

Its that correct and are there any letter templates i could use?

Thanks

sourcrates

Hi,

Well it depends on a lot of variables how much a creditor will accept in settlement.

How old the debt is, has the debt been sold on, does the creditor hold the correct legal paperwork etc etc.

If the debts are still with the original creditors, then settlement offers won't be brilliant, if on the other hand the accounts have been sold on, Lowell, for example, regularly offer between 60-90% off old accounts.

Template letter available here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

DrWatson1

I don't know the link to the letter templates, but the first thing you should be doing is a CCA request. There is an active thread on this a bit further down.

https://forums.moneysavingexpert.com/discussion/5571531

Secondly, have a bit of a search and a read through some of the threads here. If you spent an evening reading up on the various thread and tips people have posted here, you may literally save thousands of pounds.

Good luck!

Rjhsteel

What is a CCA request?

sourcrates

Rjhsteel wrote: »

What is a CCA request?

Information here : https://www.payplan.com/debt_questions/debt_forum/viewtopic.php?f=7&t=57473

and template letter here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx

Rjhsteel

So its a copy of the credit agreement?

What if they don't have a copy?

Is the debt written off an taken off my credit file?

sourcrates

Rjhsteel wrote: »

So its a copy of the credit agreement?

What if they don't have a copy?

Edit: Seems a bit pointless, no?

Err, you mis-understand.

If, a creditor cannot comply with a sec 78-79 request, it is not written off, but the debt cannot be enforced through the courts.

You would then be able to :

(A) walk away

Or

(B) offer a small sum to settle the account for good.

Of course they may be able to comply, in which case you have lost only the £1 statutory fee, but if they can't, then it can prove to be very worthwhile.

Rjhsteel

sourcrates wrote: »

Err, you mis-understand.

If, a creditor cannot comply with a sec 78-79 request, then the debt cannot be enforced through the courts.

You would then be able to :

(A) walk away

Or

(B) offer a small sum to settle the account for good.

Of course they may be able to comply, in which case you have lost only the £1 statutory fee, but if they can't, then it can prove to be very worthwhile.

Ok, would it also be taken off my credit file as well?

Rjhsteel

Basically we need to improve our credit rating for a new mortgage and want to pay off the DMP.

If the debt is "Written off" does that disappear from the credit file after 2 years or does it stay on the file.

sourcrates

Rjhsteel wrote: »

Ok, would it also be taken off my credit file as well?

No, the debt would still exist, they can ask you to pay it, they can still report on your credit file.

They just can't enforce there rights through the courts.

Doing a CCA request is a normal recomrnded 1st step you do with each account to determine its enforceability.

It's all a part of the settlement process.

Defaults stay on your credit file for 6 years regardless, if a debt has dropped off your file, it cannot come back again no matter what you do, if you already have defaults, then you can't make it any worse.

Rjhsteel

So its best to pay it off then, otherwise it could stay on the credit report.