Partial settlement

Old_Grey_Mare

I’ve been trying to sort out my daughters debts for the past couple of years. I paid a couple of CCJs and following advice on here I wrote to all her debtors asking for CCAs. Only one - Link - was able to produce it a few months later. I have written to Link several times offering to make a full and final settlement. I have just received a letter asking where the funds will be coming from and if accepted they will close the account and register a partial settlement with the credit reference agencies.

The amount I have offered is £500 against a debt of £2,100. Is there anything I need to be aware of before I reply?

Thanks.

Willing2Learn

Before you make the payment, ensure you have it in writing that:

Link nor any associate company will take any other action to collect or enforce the account in any way and that you will be released from any liability.
and
Link will mark your credit reference agency file to show that the account has been paid and closed.

If you have the above in writing then you will be ready to go 

fatbelly

Make sure you get the deal confirmed in writing before you part with money.

It's not clear whether you are still negotiating or whether Link have  accepted £500 - whichwould be a very good deal by their standards if you achieve it.

slimwallet

I have 5 creditors and need to negotiate a final settlement albeit partial. Can anyone advise as to what is the LOWEST % they would accept for a final settlement? They are currently offering a % 70 reduction i.e. pay 30% of debt to settle.

fatbelly

30% is good. Are you sure that this is enforceable and not statute barred?
If their opening offer is 30% it does raise suspicion that there is something odd with the debt. However, there is nothing to stop you offering say 20% and negotiating from there.
It's about negotiation so no-one can answer your question definitely, particularly as we know so little about the debt and its history
As a rule of thumb companies buy debts for around 10% but this can differ depending on the 'quality' of the debt. 

slimwallet

Old_Grey_Mare said:

I’ve been trying to sort out my daughters debts for the past couple of years. I paid a couple of CCJs and following advice on here I wrote to all her debtors asking for CCAs. Only one - Link - was able to produce it a few months later. I have written to Link several times offering to make a full and final settlement. I have just received a letter asking where the funds will be coming from and if accepted they will close the account and register a partial settlement with the credit reference agencies.

The amount I have offered is £500 against a debt of £2,100. Is there anything I need to be aware of before I reply?

Thanks.

I think you'll be OK as long as you are not borrowing the money to pay off the debt, I believe they may accept 23% settlement. 

slimwallet

fatbelly said:

30% is good. Are you sure that this is enforceable and not statute barred?
If their opening offer is 30% it does raise suspicion that there is something odd with the debt. However, there is nothing to stop you offering say 20% and negotiating from there.
It's about negotiation so no-one can answer your question definitely, particularly as we know so little about the debt and its history
As a rule of thumb companies buy debts for around 10% but this can differ depending on the 'quality' of the debt. 

Thanks for your quick response. It has taken 12 years to get to 30% settlement offers and from 12 creditors to 5. A debtor settled for 10% last year but the remaining 5 are sticking to 30% which is £7k & not affordable. Useful to know that they buy for 10%. Would be useful to know if anyone else has recently settled for 10 -20%.