Full & Final settlement offer REJECTED by all my creditors

General_query

Hello,

I am on a (free) Debt Management Plan and have been since February 2012.

I currently owe the following amounts to these creditors:

Cabot £1,679 (already paid back £1,191) Original Creditor: NRAM
Intrum £1,083 (already paid back £591) Original Creditor: OPUS CARD SERVICES
PRA Group £6,248 (already paid back £3,100) Original Creditor: MBNA Limited
PRA Group £2,131 (already paid back £1,115) Original Creditor: BARCLAYCARD
Westcot £4,174 (already paid back £1,977) Original Creditor: RBS MINT CLASSIC CARDS
Westcot £2,688 (already paid back £1,246) Original Creditor: Opening New Account

Total paid back to date = £9,359.


All of these debts are over 6 years old and none are showing on any of the 3 (free) credit reference agency’s files I use.

I was paying £100 a month, and after submitting a new mandatory annual review, this has now dropped slightly to £95 a month payment to my creditors.

My estimated debt free date is a crazy 2035 and still owe just under £18,000 now.

I have been given £9,000 by a family member with the sole purpose of clearing my debts once and for all via a full and final settlement offer.

However, none of my creditors have accepted this 50% offer.

They have responded with the below counter offers and NONE seem to have taken into account the fact that I have already paid them back the above amounts since being on my DMP.


Cabot £1,679 – offered £840, they want £1,193 = 71% wanted.
Intrum £1,083 – offered £542. (*See below)
PRA Group £6,248 – offered £3,126, they want £4,061 = 65% wanted.
PRA Group £2,131 – offered £1,066, they want £1,385 = 65% wanted.
Westcot £4,174 – offered £2,088, they want £3,130 = 75% wanted.
Westcot £2,668 – offered £1,335, they want £2,001 = 75% wanted.

My Debt Management company have told me “they’ve had counter offers from Wescot at 75%. I’ve spoken to Wescot today and these figures are from them, not the legal owners of the debt. I’ve requested they refer our offer back to the legal owners for consideration. They’ve confirmed they’ll do that today”, but that was 7 days ago now.

*I have been told that Intrum haven’t replied and have been uncontactable (also 7 days now).

I explained that the family member was doing this to help me out and clear my debts with this money purely to be used for a one off “full and final settlement offer”, and there would be no higher amount available, yet my creditors now want £11,700 (excluding Intrum) instead of the £9,000 which I (they) simply do not have. That’s an extra ridiculous amount of £2,700.

Any help / advice / suggestions ASAP please?

I owed money to Barclaycard, Egg, Royal Bank of Scotland, Northern Rock and MBNA off the top of my head and all these debts have been sold on to the above companies.


Thank you.
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NeverendingDMP

Who is your debt management company. Is it free or are you paying?
Pra wescott and intrum are all okay to deal with direct in my experience. It may be easier for you to noegitiate directly.
Wescott can be contacted via post or phone though i havent settled with them. Intrum and pra ive previously had payment plans and then agreed settlements with. I made offers/counter offers via email although phone post etc can also be used. Ive no experience of cabot im afraid. national debtline website has a template of how to word your offer if you want to make it directly.

sourcrates

If the debts are over 6 years old, send CCA requests to all relevant accounts, they may not have the correct legal paperwork to enforce them, worth a shot to improve your hand.

General_query

NeverendingDMP wrote: »

Who is your debt management company. Is it free or are you paying?
Pra wescott and intrum are all okay to deal with direct in my experience. It may be easier for you to noegitiate directly.
Wescott can be contacted via post or phone though i havent settled with them. Intrum and pra ive previously had payment plans and then agreed settlements with. I made offers/counter offers via email although phone post etc can also be used. Ive no experience of cabot im afraid. national debtline website has a template of how to word your offer if you want to make it directly.

Thank you. I'd rather CCCS handle my F&F offer, but now I have done, don't think they've done it very well. And it is a free service btw!

General_query

sourcrates wrote: »

If the debts are over 6 years old, send CCA requests to all relevant accounts, they may not have the correct legal paperwork to enforce them, worth a shot to improve your hand.

Yes, they are all over 6 years old.

And what if they don't have the original CCA's? Does that mean they have no right to make me keep paying them through CCCS each month? And if so, why have they refused this £9,000 one off offer if they know they can't chase me anymore for remaining £18k?

And surely CCCS would know this?

EssexHebridean

General_query wrote: »

Yes, they are all over 6 years old.

And what if they don't have the original CCA's? Does that mean they have no right to make me keep paying them through CCCS each month? And if so, why have they refused this £9,000 one off offer if they know they can't chase me anymore for remaining £18k?

And surely CCCS would know this?

At a guess, because there's a chance you might just pay the higher amounts, in which case it's a win for them?

As for CCCS knowing - have you done this before (the CCA request I mean) and reported back to them? If not there's no reason why they would know as far as I'm aware.

sourcrates

General_query wrote: »

Yes, they are all over 6 years old.

And what if they don't have the original CCA's? Does that mean they have no right to make me keep paying them through CCCS each month? And if so, why have they refused this £9,000 one off offer if they know they can't chase me anymore for remaining £18k?

And surely CCCS would know this?

Not providing correct paperwork only removes the creditors right to take court action, they can still ask you to pay, and the debt can still be chased, some will accept lower offers to settle, others won’t, it’s always a commercial decision.

By the way cccs is now stepchange.

General_query

sourcrates wrote: »

By the way cccs is now stepchange.

Yes I know, been with them that long I still call them CCCS....

General_query

Update: Intrum had replied saying no they reject the 50% offer and will accept 70% (£760) and Westcot have now AGREED to accept 50%, so they will accept £2,088 of £4,174, and £1,335 of £2,668.

But I would still need to raise £1,729 in additional funds to clear the whole lot at those rates offered by the creditors

I really do not think my partners sister would shell out another £1,729

StepChange advised:

"Based on using the £9,000 to clear as much debt as possible you could pay the two Wescot acceptances and the two PRA Group counter offers.

This would reduce the length of your plan from 189 months to 28 months left to pay.

There’d be £129.10 left over which could be shared between the remaining creditors.


That would reduce the plan to 27 months.


Or, if you were able to raise additional funds you’d need £1,729.80 in order to clear everything and get debt free".

HELP
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EssexHebridean

If it were me I'd take up Wescot's offer - which was after all what you wanted - and let the rest stew for a little while you do the CCA requests. If any of them employ joined-up thinking they may decide to belatedly accept your offer when the CCA requests go in anyway. That is from a position of pure logic though - DMP's and F&F's are NOT my area so Sourcrates & others may disagree.

General_query

Rang up Cabot (as recommended by StepChange) to try and negotiate a definite final deal, and of the £1,679 still owed to them - and despite StepChange offering them 50% (£840), they won't budge one bit and still want 70% = £1,193.

Only deal they would do was 3 x monthly interest free payments of £397.97 each month, totalling £1,193.

No thank you