Debt Collection Agency Offering a Discount.

azad1980

hello,
please i need some advice.
last week i have received a letter from debt collection , telling me that they are currently managing a debt i have worth( £13000 )
It was basically a loan from lloyds bank in 2009 and i was pay £10 a month and i never miss any payment with them.
However, the letter it says we can give you big discount, they ask for £3900 if i pay this amount they will wipe the balance and close account.has anyone else been offered??? any advice i will be appreciated.
thanks.

sourcrates

Hi,

It is fairly common to offer discounts on debts, but that's quite a Hugh one.
Can you afford to pay that amount ?

If you decide to take the offer, make sure you get there agreement to the following, in writing first :

"I am accepting this offer on the clear understanding that, once paid, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability."

Don't part with a penny until you have there written agreement.

azad1980

thank you so much (sourcrates) for you advice yes i can pay this amount my friend lend me money however thanks again.

MrsTinks

azad1980 wrote: »

thank you so much (sourcrates) for you advice yes i can pay this amount my friend lend me money however thanks again.

In which case offer them slightly less...

Tell them that you are unable to pay that but a friend will lend you say £2000 to clear it as full and final. If they have bought this for pennies in the £ then anything they make is likely a profit. Worst case they don't accept and you accept their offer

National_Debtline

Hi

I agree that it’s worth offering a lower amount as MrsTinks suggests. If they’re offering you a reduction it’s a fair bet they can accept a lower amount really.

You can make your own full and final settlement offer using this sample letter:

www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-(sole-name).aspx#

James
@natdebtline

azad1980

thank you for all to reply.
i have already asked them they don't accept lower offers i was try but still good offers i think.

fatbelly

I agree with all the above. 30% is a good offer, though very unusual for an opening offer.

Presumably you'll pay your friend back at £10 per month for 390 months?

azad1980

thanks for ur reply, no i just found full time job i will pay back as soon as i can.

National_Debtline

azad1980 wrote: »

thank you for all to reply.
i have already asked them they don't accept lower offers i was try but still good offers i think.

Have you only discussed this with them on the telephone so far? I think it’s worth offering a reduced amount in writing as it will probably get evaluated by a different department who may have more discretion.

Stress the fact that this offer is only available for a limited period, and the alternative is a long payment plan.

Before doing so you could make a request for the CCA (Consumer Credit Act) agreement. If you make the request in writing in the correct way they’ll need to supply you with a copy with the correct terms and conditions, otherwise the debt would be unenforceable. In that situation you may have more luck with pushing for a lower settlement amount.

This factsheet has more information on requesting the CCA agreement:

www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx

James
@natdebtline

azad1980

yes i have already request for the CCA (Consumer Credit Act) agreement thanks for you reply.

azad1980

hello everyone after several month i request for the CCA (Consumer Credit Act) today i have received letter from CABOT FINANCIL they ask for payment plan and they couldn't make my request . any advice i will be appreciated thank you.