Full and final settlement offers

brfla

Hi guys,

I currently have just over £5,000 in debt and have been paying £150 per month through Stepchange (a DMP) for around 18 months.

In November I sent letters to 2 of my creditors/debtors (I don't know the correct word) with £1 attached as a CCA request (think this is what it's called). I had responses from both of the creditors/debtors advising the debt had been found unenforceable as they couldn't access the relevant documents.

The 2 creditors/debtors are PRA group who I owe £730 and Link financial who I owe £2,000 to. Original debts were to Barclaycard and Aqua.

I called PRA group today and confirmed they had on their system that the debt is unenforceable. I made a full and final settlement offer over the phone of £250 (around 35% of what I owe). Obviously I will want the full and final offer in writing before I accept or make any sort of payment.

Was this a smart move? Should I do the same thing with Link Financial? Is this an offer which will likely be accepted?

What would happen if I just removed PRA from my DMP payments? As far as I'm aware they're able to continue to harass me and are also able to sell on the debt but while the debt is unenforceable they can't add any further charges or take me to court? Is this correct?

If they don't accept my offer I was thinking about just removing them from the DMP so they receive no payment from me at all for 6 months or so then trying again.

Any advise is appreciated

Willing2Learn

Hi, if the debts are unenforceable, due to unavailable or incorrect paperwork, then there is no need to make the offers. You can if you wish, as a moral issue, decide that you wish to pay these debts, then you should only make the offer at a very low level. Before you make any payments, make sure that the creditors (Link and PRA), send you written confirmation that the account will be marked on your credit files as partially settled and closed.

Edit: And welcome to the forum brfla

sourcrates

You can just remove them from the DMP and concentrate on the ones that are enforceable.

I would not waste my money on unenforceable accounts.

brfla

So at this point there's no way this can come back to bite me? What happens if they find the paperwork, does it not matter any more since they missed the time frame?

Thanks for your help.

EDIT: also is there any way to get rid of these accounts from my credit file?

Willing2Learn

Hello again.

You called PRA with an offer on the 28/12/18. You have acknowledged the debt, which means it would not become Statute Barred until 28/12/24. If PRA find the paperwork before then, the debt would become enforceable again.

With LINK - When was the last time you acknowledged the debt? Did you send them a CCA request too?

sourcrates

The 14 days allowed to comply with a CCA request, are just a guideline timeframe, the account remains unenforceable until compliant paperwork is received.

If they say they cannot find it, it’s unlikely they will continue to look, but not impossible, remember there are millions of old accounts, so they tend to concentrate on accounts that are enforceable, and that will make them money.

They can still ask you to pay, they can still report on your credit file, they can still sell the debt, what they, or anyone else, can’t do, is obtain judgment against you.

In practice, if you say your not paying, they tend to go quiet after a while, if they sell it on, you simply refer the new owner to the lack of credit agreement and it’s unenforceable status.

That usually results in them returning the account.

System

Nearly 4 years into our DMP and I am still a bit unsure about this whole Statute Barred thing. We have 3 debts with PR*...all small ones that we asked for CCA paperwork last Feb. They replied in March that they did not have it and would put the account on hold until it is found.
We have heard nothing since, except I did try an F&F on one of them just to get it out of the way and clear my conscience about not paying it. They refused and that was that, we stopped paying and haven't heard a word from them since.


So can someone please explain Statute Barred again please. After how many years can we be confident that we will not end up having to pay these? Or is this not what it means. Should add that they were all defaulted in 2015 as well.

Willing2Learn

ploppy57 wrote: »

Nearly 4 years into our DMP and I am still a bit unsure about this whole Statute Barred thing. We have 3 debts with PR*...all small ones that we asked for CCA paperwork last Feb. They replied in March that they did not have it and would put the account on hold until it is found.
We have heard nothing since, except I did try an F&F on one of them just to get it out of the way and clear my conscience about not paying it. They refused and that was that, we stopped paying and haven't heard a word from them since.


So can someone please explain Statute Barred again please. After how many years can we be confident that we will not end up having to pay these? Or is this not what it means. Should add that they were all defaulted in 2015 as well.

The debts will become statute barred six years after the last time you made a payment toward the account, and you have not made an acknowledgement of the account during the six years, and there is no CCJ on the account.

Assuming that your debts were defaulted in 2015, at the point when you were 2-3 months in arrears, when you last paid money, would be the approximate date when the six year clock would start. **I think I am correct, but best wait for someone with the definite facts.**

Edit: The above info does not apply for debt of an overdraft.

System

Willing2Learn wrote: »

The debts will become statute barred six years after the last time you made a payment toward the account, and you have not made a payment to the account during the six years, and there is no CCJ on the account.

Assuming that your debts were defaulted in 2015, at the point when you were 2-3 months in arrears, when you last paid money, would be the approximate date when the six year clock would start. **I think I am correct, but best wait for someone with the definite facts.**

Edit: The above info does not apply for debt of an overdraft.

Thanks, still confused. Yes they were defaulted in 2015 and then sold to a DCA shortly after. We continued to make payments through SC and then went to a self managed DMP in Feb last year. Our last payments to them was in March last year. So the 6 year clock starts from then?

Willing2Learn

Yup The six years starts from the date of the last payment (March last year).

I re-edited my previous post as it was slightly wrong.

System

Willing2Learn wrote: »

Yup The six years starts from the date of the last payment (March last year).

I re-edited my previous post as it was slightly wrong.

And that means they definitely can't chase us for money after that?