Debt offer letter

Ms.A

Hi,
I hope someone can help with what to do next.

I have received an offer letter from a debt company to pay 33% of the debt.
This amounts to £188.
I was visiting my parents over the holidays and the letter says today is the last day to contact them.
I do wish to accept this offer but am not sure how to continue or what to ask for / say when I phone them.
I will obviously need proffered that the payment I make will clear the debt entirely.

Any help would be great thank you !

sourcrates

Hi there,

Pay no attention to there fictitious time scales, they are meaningless, these companies will always accept offers on old debts.

Best advice is not to phone a DCA, always do everything in writing.

National Debtline have an excellent template letter for such situations, which sets out the legal position, so you cannot be chased for the remainder of any debt you settle.

Template letter here :

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

If there opener was 33%, then its likely you can achieve better, remember, its all a matter for negotiation.

Ms.A

Thank you for your advice.
I will have a look at the links.

sourcrates

Ms.A wrote: »

Thank you for your advice.
I will have a look at the links.

Its ok to ring them and attempt to negotiate a settlement figure, as long as its backed up in writing, containing the appropriate wording, as in the template letter from ND.

Quite often people jump at these settlement offers, and just pay up, without getting one ounce of written proof the debt is paid.

The creditor, in law, has done nothing wrong, so sells on the remainder of the debt, and then you get harassment from a new DCA over essentially the same debt.

I cant stress how important it is to do these things the correct way.

Ms.A

So would you suggest phoning and asking if it could be reduced to 150 pounds?
And if that's the case for them to send a new offer letter?
If they refuse them to say that the current offer of 188 is acceptable and I will be agree to this offer in writing and posting tomorrow.
Thanks again

sourcrates

Ms.A wrote: »

So would you suggest phoning and asking if it could be reduced to 150 pounds?
And if that's the case for them to send a new offer letter?
If they refuse them to say that the current offer of 188 is acceptable and I will be agree to this offer in writing and posting tomorrow.
Thanks again

If it were me, i`d do everything in writing, so i was 100% covered.

Offer them the £150 in the letter, see what the response is.

Keep copies of everything.

Ms.A

I phoned them today offered 140. They said said they need income and expenditure statement in the post. And crucially that the payment would only count as a partial payment, which is not worth it.
So I will send the letter and the income expenditure and see what they say.
Thank you for your help.

Marktheshark

STOP :
Explain what the debt is for and how old the debt is.
It might not be enforceable and a couple of template letters could get you off the hook without paying anything.

Any dates and what type of debt.

Ms.A

The debt is from 2008, its a credit card debt I was making token payments to a different debt collection agency until 2012.
I have my first child in 2012 and for various reasons I stopped making payments in 2012. So it's been 4 years since any kind of contact apart from recent letters and the phonecall today.

fatbelly

Ms.A wrote: »

I phoned them today offered 140. They said said they need income and expenditure statement in the post. And crucially that the payment would only count as a partial payment, which is not worth it.
So I will send the letter and the income expenditure and see what they say.
Thank you for your help.

I presume they are talking about it being a 'partial settlement', which is the correct term for your credit file. You would need to look carefully at the wording of their letter confirming the agreed deal.

Marktheshark wrote: »

STOP :
Explain what the debt is for and how old the debt is.
It might not be enforceable and a couple of template letters could get you off the hook without paying anything.

Any dates and what type of debt.

Mark is right to be suspicious of a company offering a 33% settlement out of the blue

Ms.A wrote: »

The debt is from 2008, its a credit card debt I was making token payments to a different debt collection agency until 2012.
I have my first child in 2012 and for various reasons I stopped making payments in 2012. So it's been 4 years since any kind of contact apart from recent letters and the phonecall today.

Well it's now 2017 so we are heading towards 5 years. Are you in Scotland by any chance?

Ms.A

Thanks for the further advice.
No I'm not in Scotland.
I think it will be 5 years in July of this year.
What happens after 5 years? I thought it was 6 years was the cut off.