Advice Needed! First Post

June2019

Ok so here goes, , my first post and I am in need of much needed help and advice!! Hopefully I am in the right place!

So to get things started I am on a DMP with StepChange and out of the blue on Saturday I received a settlement offer from my highest debt. Which I am excited about but also unsure about what to do next because at the moment my head is spinning with possible ways of somehow paying this off and clearing a huge chunk of my debt, so for any advice on here do I post my current details and figures? How does this all work to get some help and advice?!

Thanks in advance

Desperate to be out of debt!!

RecentPost

I am with PayPlan for my DMP - I have paid settlement offers and PayPlan are fine to take them off my DMP once paid. First step speak to stepchange

Edit - missed the points - what assests/funds do you have to clear the balance - whats the amount and discount?

June2019

Unfortunately I dont have assets/funds to pay off this offer I have received, however as it seems too good to refuse I'm considering asking family to help with this one - as I am on a DMP I live each month to a budget and dont have large sums of money to pay off settlement offers, ,

So this is my highest debt :

Lloyds Loan - £12,317.53
Moorcroft have sent me a settlement offer of £3695.26 which is a massive 70% !!


So obviously I dont have that but willing to consider to get that and pay off the amount or would Moorcroft consider a payment plan with them?? And I take them off the DMP with StepChange
Again any help is massively appreciated

Willing2Learn

How old is the debt/loan and when did you take the loan out?
When was the loan defaulted?

I ask these questions because Moorcroft have sent you such a low offer, it makes me think something may be wrong with their paperwork.

And welcome to the forum

June2019

The loan goes back to around 2003/2004 (I may have to look back to find the exact dates) and it was added to my DMP around 2014

The offer is so good that I have to take up this offer but just after advice and also whether I should contact other big debt's on my DMP and ask them for settlement offers??

Willing2Learn

Given the age of the loan, it is possible that Moorcroft do not have compliant paperwork. If it were me, I would respond to their offer with a CCA request (to check the paperwork). If the paperwork was not compliant, then you would be in a position to either make a lower counter-offer, or to withhold payment completely.

Assuming all your other accounts are around the same age, I would recommend submitting CCA request for each account (but not for an overdraft). Have a look at the link below:

Debts - why, how & when to ask for the CCA agreement

June2019

This debt is the oldest one as the others are more recent

So sorry to sound a dummy but what is it I need to be checking that's not compliant??

Surely 70% settlement offer is fantastic right?!

If only I had the money to pay it!

Willing2Learn

I do think that 70% is a fantastic offer. It is just that if Moorcroft are unable to provide you with a 'true copy' of your Consumer Credit Act (CCA) Credit Agreement, then you may be able to haggle a bigger discount. Have a read of the article I linked in my last post to see how that works.

June2019

Thanks Wiling2Learn I will print that off and have a good read through that

So to overview if a CCA is not provided by the company that has taken over the debt that I do not have to pay the debt??

The next highest debt on my DMP is Nationwide Credit Card - £2,518.16
I am considering now seeing if they will accept a settlement offer, any thoughts on this?

Willing2Learn

June2019 wrote: »

So to overview if a CCA is not provided by the company that has taken over the debt that I do not have to pay the debt??

Yes, if they are unable to provide you with a true copy of your original credit agreement, then you can choose to either make a lower offer (eg 80% discount), or withhold payment completely. This would be because the account would become unenforceable without a true copy of the credit agreement.

June2019 wrote: »

The next highest debt on my DMP is Nationwide Credit Card - £2,518.16
I am considering now seeing if they will accept a settlement offer, any thoughts on this?

If that account is also old, then you may want to submit a CCA request for that account too.

June2019

Anybody else got any advice at all??

Desperate for advice and not sure what to do next

I just want a quick end to debt - my DMP with StepChange will see me debt free in 2035 - but now I have this settlement offer on my biggest debt things could be changing - although I dont have the money I'm thinking of how to get it / family etc