CCA’s can’t be provided.. Now what? What needs to be included on a full & final settlement offer?

DogFace

I’ve had replies from 2 out of 3 of my debt collection agencies to say that they can’t locate the agreements so the debts are not enforceable.

My plan was just to use this as bargaining tool to get a better full and final settlement deal (I already have defaults on all of the accounts btw). Is that the best course of action?

My other thought was: do I need to act fast with these offers in case they locate the agreements? Do they even continue to look or does this mean they won’t find them? (Obviously I understand there’s still a chance they might fall into their hands, I’m just talking generally)

Thanks in advance for any help or experiences you can share!

sourcrates

Creditors are only obliged to keep paperwork for 6 years, some lose it long before that, it takes up physical space which costs money, so they may only keep it for 3 years, it costs less to make a loss on certain agreements that can’t be proved, than it does to pay for storage space.

Increasingly now, everything is going digital, but a physical printed copy is still necessary for the purpose of section 77/79.

You can do what you see fit now, either make an offer, or ignore it completely, they won’t be actively looking for your paperwork.

DogFace

If I was to ignore it completely, how would that be viewed by future mortgage providers? Would they be able to see that I was not paying it or would it just appear as a defaulted but ongoing debt? After the default drops off, would it then just be as if it never existed?

Basically I’m trying to work out if there are any advantages to making a settlement offer (other than for my own moral satisfaction because I did take out these loans so think I should repay them.. yet I understand they buy them for a fraction of the debt... I’m so torn!).

sourcrates

It will drop off your credit file 6 years from default regardless of what you do.

Westminster

If you intend to make any F&F offer then make it conditional on removal of the default.

I managed to get this with a couple of creditors.

DogFace

If you don’t mind me asking, when was this? I heard it’s pretty much impossible to get defaults removed now unless there’s a legit mistake (which I suppose they can’t prove there wasn’t atm!?)

sourcrates

DogFace wrote: »

If you don’t mind me asking, when was this? I heard it’s pretty much impossible to get defaults removed now unless there’s a legit mistake (which I suppose they can’t prove there wasn’t atm!?)

Some people have been successful in getting defaults removed from their credit file, as part of a full and final settlement agreement, or as a gesture of goodwill.
This has mainly, being confined to the payday loan complaint resoloution sector, but others have succeeded as well.

Its entirly at the discretion of the creditor though, and remember, they are under an obligation to report correct information, but as the old adage says, if you don`t ask, you don`t get.

DogFace

I’m finally in the position to make my actual F&F offers to the two who couldn’t produce the agreements (the third sold it on to another agency, who actually already own one of the others).

I’m so super apprehensive about sending these letter because I’m worried I’ll mess it up and end up costing myself a load of money but I think I’m finally ready to send. I’ve used the template letter from National Debtline’s website but in the section it says to add any extra information you want them to know I was advised by Debt Camel that, due to them not providing the CCA, I needn’t bother.

Here’s what I was thinking:

“As you are unable to produce the CCA agreement, this debt is unenforceable and I have been advised that I could cease payments, without repercussions, especially considering that the default is due to drop off my file next year. However, in order to have a final settlement I am prepared to offer you 5% (£146.23) to settle it. This is only available for a limited amount of time before the money is either used to increase offers on my other debts. I have been unable to make my monthly payments for months (my last payment to you was December 2019) and, as you can see from my attached statement of affairs, it is no longer affordable for me to do so.”

My statement of affairs shows that my incomings and outgoings leave me with a deficit which is roughly equal to what I pay for my DMP and credit card combined.

Does this all seem ok? Any help would be greatly appreciated!

[Deleted User]

DogFace said:

Here’s what I was thinking:

“As you are unable to produce the CCA agreement, this debt is unenforceable and I have been advised that I could cease payments, without repercussions, especially considering that the default is due to drop off my file next year. ......''

Can I ask about your reference to 'repercussions' in connection to  the fact that the default is due to drop off your file next year?   What has the potential disappearance of the default to do with the likelihood of the creditor accepting your F&F offer or not?  Just interested as it may be useful information for someone I'm trying to help who is in a similar boat to you.

Thank you

sourcrates

There are no repercussions whatsoever, that bit is meaningless to be honest.

The letter is ok, but don’t expect them to bite your hand off, more often than not, they will hold out for a better deal, or just write the debt off regardless against their tax liability, or they will sell it on to someone else, see what happens.

deano1506

DogFace 

“As you are unable to produce the CCA agreement, this debt is unenforceable and I have been advised that I could cease payments, without repercussions, especially considering that the default is due to drop off my file next year. However, in order to have a final settlement I am prepared to offer you 5% (£146.23) to settle it. This is only available for a limited amount of time before the money is either used to increase offers on my other debts. I have been unable to make my monthly payments for months (my last payment to you was December 2019) and, as you can see from my attached statement of affairs, it is no longer affordable for me to do so.”

Please keep us updated on how you get on with the F&Fs - Good luck