D.M.P. Full and final settlement approach

Hi everyone.
We have been in a DMP with Payplan for nearly 16 years.Current balance is £32000.
We have come into some money and would like to know how to approach our 11 Creditors.
We have not got £32000.It is above 10k that we may have in the next 3 months.

We have letters from 4 of our creditors offering 50% discount to settle.
Will be ringing all our creditors to see whats on offer (would like more than 50% off)
What are other peoples thoughts on how to approach?
Please be gentle with your thoughts and ideas :smile:
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Comments

  • GreenCat80
    GreenCat80 Posts: 268 Forumite
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    I used this template letter to write to my creditors - https://nationaldebtline.org/sample-letters/full-and-final-settlement-offer/

    Maybe start by offering them all 10% of what you owe and take it from there. Good luck! 
    Debt was £15,903 😬 Now £2718.14 £0 😲🥳



  • sourcrates
    sourcrates Posts: 28,834 Ambassador
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    The very first thing you do is send CCA requests to all your relevant creditors.

    After 16 years, none of these accounts should be showing on your credit file, so see if they can produce the correct and legal paperwork to continue receiving payments, if not, it strengthens your position when conducting negotiations, or you could just draw a line under a particular debt and walk away, but in any case, you need to know what is enforceable, and what is not, before you even mention the words "settlement offers".
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Dmptogo
    Dmptogo Posts: 45 Forumite
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    Thank you.
    Where do I get a up to date template letter for this.Also out of the 11 creditors 4 are with Caboot 2 with Intrum do I send separate letters for all of them or contact them by email?
  • fatbelly
    fatbelly Posts: 20,455 Forumite
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    You can use email and you can combine letters.

    You can adapt the National Debtline standard letter

    https://nationaldebtline.org/sample-letters/full-and-final-settlement-offer/

    I agree with both of the posters above, except 10% may be a bit low. However, the rule here is 'you can always go up'

    You can use phone to fine-tune the deal. Make sure you get the final deal confirmed in writing either by old-fashioned letter or attachment with their letterhead.

    as a first step CCA the accounts that you can - this is credit debts like loans, credit cards, catalogues but not overdrafts, mobile phones, energy bills.

    https://nationaldebtline.org/sample-letters/information-about-your-agreement-under-consumer-credit-act/
  • Dmptogo
    Dmptogo Posts: 45 Forumite
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    Thank you for advice.
    Worried I could open a can of worms and they all add the interest back on.Its been frozen for the past 16 years/

  • fatbelly
    fatbelly Posts: 20,455 Forumite
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    I've never known that to happen. You're just discussing a final figure to settle at, anyway. 
  • sourcrates
    sourcrates Posts: 28,834 Ambassador
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    Dmptogo said:
    Thank you for advice.
    Worried I could open a can of worms and they all add the interest back on. Its been frozen for the past 16 years/

    Credit agreements allow the inclusion of interest and various charges for certain infractions of the agreement, whilst the agreement is in force.

    Once accounts default, all interest and charges stop, because the terms of that agreement have been broken, you are no longer bound by those terms, as you are in default of that agreement.

    In theory a company could reinstate interest that was previously stopped, but this virtually never happens, and would not even be in the mindset of the negotiations you would be conducting to seek a final settlement to a debt.

    Would not even be on their radar.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Dmptogo
    Dmptogo Posts: 45 Forumite
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    Thank you.
    So basically to try and get a quick end to this I think we will go in with a very low offer to all my creditors and see waht happens.
    Looking at requesting CCA could take weeks?

  • GreenCat80
    GreenCat80 Posts: 268 Forumite
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    Dmptogo said:
    Thank you.
    So basically to try and get a quick end to this I think we will go in with a very low offer to all my creditors and see waht happens.
    Looking at requesting CCA could take weeks?

    I didn’t do the CCA requests as I didn’t have time to wait. I’ve settled 2 with Cabot for 50% (I think I started at offering them 30%) and one with Capquest at 40%. There is a full and final thread on here where lots of people have shared their experiences, I found it helpful to read through it and it made me feel a bit more confident sending my offers :) 
    Debt was £15,903 😬 Now £2718.14 £0 😲🥳



  • sourcrates
    sourcrates Posts: 28,834 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Dmptogo said:
    Thank you.
    So basically to try and get a quick end to this I think we will go in with a very low offer to all my creditors and see waht happens.
    Looking at requesting CCA could take weeks?

    Unfortunatly you may be looking at a lot longer than that, this process can take a year or two occasionally.

    Most companies, despite what they might say, are not very quick to respond to offers.

    CCA requests alone could take 6 months to a year before the account status is actually confirmed, its not a quick process at all.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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