Full and Final Offer - Loan still "In Term"

stevie_deako

Hi,

I have been in a DMP for several years, and due to a small inheritance, I am in a position to offer around 40% by way of F&F. In total, I have 14 creditors with debts ranging from £23k as the largest down to £350 as the smallest.

So far I have been able to agree settlement at values ranging from 42% to 60% for 6 of the debts, whilst I continue to negotiate on the remaining debts.

However, my biggest issue is with the largest of the loans, the £23k which was originally a Tesco loan, now under the management of Intrum. The problem is that the debt is still within the original term of the loan (and will be until September 2020), and as such, they are not prepared to offer any kind of settlement other than an interest reduction equivalent to approximately £1k.

For information, my original offer of settlement was just over £10k, but the maximum that I could possibly raise would be £14k.

I have trawled the internet for any guidance on this scenario, but cannot find anything. I have also raised the issue with Stepchange, and am still waiting on their response, so I thought I would ask if anyone else has had a similar issue with a loan still being in it's original term, and how it was resolved.

Thanks in advance.
Steve

sourcrates

Hi,

By original terms, you mean its not been defaulted ?

Only one way to get a default, and thats to stop paying them.

The problem you will have is they may take legal action, as its a sizeable debt, or they may sell it, which is what you want, no way to tell which way they will go.

If it was sold on, and left a while, the discount would be a lot better, but its a risk.

NeverendingDMP

Can't give an answer I'm afraid but I have a Tesco loan that was passed to intrum. Mine was sold to them I think and I had defaults etc. Shortly after my letters explaining intrum were now the people to deal with I got a letter offering a settlement figure. Just over 40 Percent if I paid in so many days. Fifty percent if eight weeks 60 percent if paid in so many other weeks etc. I couldn't afford it so did nothing but within a week had a letter to say my settlement offer had been sent in error so was not valid. Possibly this is why. I'm not 100 percent sure what my end date was without digging it out but I reckon at a guess it's another year or two off from now and it's been with intrum over 12 months. Maybe that's why they wrote to me to withdraw the offer? Mines at 11300 now. I'm paying ten pound a month whilst awaiting paperwork from a CCA request. I requested the CCA info in April and haven't had much back yet. Have you ever requested CCA from them. Might be a way to reduce payments yet keep them sweet at the same time.
Following with interest as I've two debts that are technically still in agreement dates.

sourcrates

CCA request is good advice.

You would be surprised how negligent creditors can be when it comes to the nicities of paperwork.

stevie_deako

Thanks for the advice. I have not requested CCA yet, but will do that now, and see how things go, and keep you updated of any progress.