Stepchange to Self Managed - F&F Question

edited 17 October 2022 at 3:27PM in Debt-free wannabe
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DJB343DJB343 Forumite
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edited 17 October 2022 at 3:27PM in Debt-free wannabe
Hey there,

I haven't been on these forums for quite some time, the last time I posted I was drowning in £34,500 worth of debt and absolutely lost.  This forum got me out of that hole, and I currently have just over £6,000 to pay back.  So if anyone is currently reading this and is losing sleep over their debt problems, please know there is always help out there to get you back on track!
So like most people here I used Stepchange for a number of years and they have been incredible.  However I'm now considering going self managed with the aim of negotiating a reduced F&F settlement down the line. I'm all set up on CAB Money, ready to cancel SC and send out letters to my creditors. 
I currently have 5 creditors remaining, out of the 5:
2 are now with PRA & 3 are with INTRUM - (All 5 accounts were transferred to these debt collection agencies - and are not the original creditors)
Here's to my question; Has anyone got any expierience negotiating a F&F settlement per account in which you have multiple accounts under? 
For eg -
I have 2 accounts with ITRUM | 1 - £2137.32 | 2 - £1868.22
If I were to say - I have a lump sum of £1000, I'd like to negotiate a final F&F settlement for account 2 .  Is there a likelyhood that they would already know I have another account with them and suggest I put that money toward account 1 ?  Thus making a F&F settlement less likely.
Hope my jibbering made some sort of sense, and someone else has been through this process already
Thanks
DEBT - £34,469 | £6,224.01 REMAINING - 81% PAID OFF. GETTING THERE
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Replies

  • fatbellyfatbelly Forumite
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    You can negotiate on individual debts.

    You may get different settlement figures as each debt will be at a different stage and they may well have paid different percentages for each (though we'll never get that information)

    Best of luck with clearing those debts. PRA can be hard work.
  • sourcratessourcrates Forumite
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    PRA and Intrum are debt purchasing companies, not debt collectors as such, they buy debts in bulk, for a very small fraction of their original face value.

    PRA are notoriously difficult to negotiate with, many stories on here of failed attempts at obtaining a good discount, some have succeeded, but not many.

    Intrum, not as big a player as say Cabot or Lowell, so not a lot of information available on them, debts can be dealt with separately, because as fatbelly says, all will be at different stages of collection, you may get somewhere, you may not, all you can do is try.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • edited 17 October 2022 at 3:24PM
    DJB343DJB343 Forumite
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    edited 17 October 2022 at 3:24PM
    Ah! you both are still here - great to see; just wanna say thank you for your help a few years back. Really got me out of a situation in which I thought I would never be able to fix.
    Great advice as per guys - appreciate your time.  Will update if I have any news in the near future
    Ta
    DEBT - £34,469 | £6,224.01 REMAINING - 81% PAID OFF. GETTING THERE
  • KakisteKakiste Forumite
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    I had two debts with HSBC- I managed to get the much larger one (around £7K) settled for 60% in a F&F offer- during the negotiation the fact that I had another debt with the same bank (around £2k) wasn't ever mentioned. 
    Bottom line; 
    £49k paid off 
    Car HP paid off
    Debt Free!

    Current focus; saving EF fund
  • edited 20 October 2022 at 2:02PM
    DJB343DJB343 Forumite
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    edited 20 October 2022 at 2:02PM
    Kakiste said:
    I had two debts with HSBC- I managed to get the much larger one (around £7K) settled for 60% in a F&F offer- during the negotiation the fact that I had another debt with the same bank (around £2k) wasn't ever mentioned. 

    I wish I'd known this earlier! I've recently managed to clear both my HSBC debts :D oh well lol

    Great negotiation skills!  40% off 7K is such a good result. 

    Thanks for chipping in on this, I've cancelled my SC now and am awaiting a barrage of letters from both debt purchasers before I send off my CCA requests!
    DEBT - £34,469 | £6,224.01 REMAINING - 81% PAID OFF. GETTING THERE
  • edited 21 October 2022 at 9:19AM
    DJB343DJB343 Forumite
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    edited 21 October 2022 at 9:19AM
    I've been wondering - and maybe @sourcrates you can help answer this.  I've cancelled Stepchange now and preparing to go self managed - however I've not sent any letters to them telling them this is the case just yet.
    From what I've read whilst lurking, is that it's beneficial to send out CCA requests first.  Should I be awaiting them to contact me before I send out the requests, or is it fine to go ahead and request them.  Which would hopefully put a freeze on my account thus avoiding a missed payment on my report.
    DEBT - £34,469 | £6,224.01 REMAINING - 81% PAID OFF. GETTING THERE
  • sourcratessourcrates Forumite
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    DJB343 said:
    I've been wondering - and maybe @sourcrates you can help answer this.  I've cancelled Stepchange now and preparing to go self managed - however I've not sent any letters to them telling them this is the case just yet.
    From what I've read whilst lurking, is that it's beneficial to send out CCA requests first.  Should I be awaiting them to contact me before I send out the requests, or is it fine to go ahead and request them.  Which would hopefully put a freeze on my account thus avoiding a missed payment on my report.
    OK, in debt management, your credit file is always going to take a hit, be it late or missed payments/defaults whatever it may be, your credit file should not be your number one priority here.

    You are free to make CCA requests at any time, however, a reconstituted version of your credit agreement is perfectly acceptable and should not be hard to comply with.

    CCA requests work best in your favour when the accounts in question are old (4/5 years or more) and have been sold on at least once, because you are relying on the creditor not been able to produce such an agreement, thus rendering your debt unenforceable.

    So, if your accounts are fairly recent, do expect them to be able to comply.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • flipflopfloflipflopflo Forumite
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    I was going to say that it’s the defaults that you want, not to delay them but get them as soon as possible. 
  • edited 21 October 2022 at 10:54AM
    DJB343DJB343 Forumite
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    edited 21 October 2022 at 10:54AM
    DJB343 said:
    I've been wondering - and maybe @sourcrates you can help answer this.  I've cancelled Stepchange now and preparing to go self managed - however I've not sent any letters to them telling them this is the case just yet.
    From what I've read whilst lurking, is that it's beneficial to send out CCA requests first.  Should I be awaiting them to contact me before I send out the requests, or is it fine to go ahead and request them.  Which would hopefully put a freeze on my account thus avoiding a missed payment on my report.
    OK, in debt management, your credit file is always going to take a hit, be it late or missed payments/defaults whatever it may be, your credit file should not be your number one priority here.

    You are free to make CCA requests at any time, however, a reconstituted version of your credit agreement is perfectly acceptable and should not be hard to comply with.

    CCA requests work best in your favour when the accounts in question are old (4/5 years or more) and have been sold on at least once, because you are relying on the creditor not been able to produce such an agreement, thus rendering your debt unenforceable.

    So, if your accounts are fairly recent, do expect them to be able to comply.

    Okay I feel I should of included a bit more information here.
    I defaulted on all my accounts mid 2017, so would regard them as old.  They should also drop off my account mid next year.  All my accounts have been passed on to debt purchasers.
    Though not a real concern, I'd like to keep my 'missed payments' on my report to a absolute minimum as I've not missed a payment since defaulting in 2017 and is one of the reasons why my score has been rising.
    I feel it's probably safer then to inform them that I'm going self managed, and then follow up with a CCA request - rather than await any correspondence from them.
    DEBT - £34,469 | £6,224.01 REMAINING - 81% PAID OFF. GETTING THERE
  • edited 21 October 2022 at 12:16PM
    sourcratessourcrates Forumite
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    edited 21 October 2022 at 12:16PM


    Though not a real concern, I'd like to keep my 'missed payments' on my report to a absolute minimum as I've not missed a payment since defaulting in 2017 and is one of the reasons why my score has been rising.

    As your accounts have defaulted, that is what is recorded on file, default is the end game status, it won`t change now until it drops off your file, so no missed payments can be recorded, as you have already defaulted, although your balance over time may be shown in the form of a graph.

    Think of the traffic light system -

    Red -Default
    Amber - Missed/late payment
    Green - Tick, all good.

    The payments you are currently making are not contractual, all that ended when you defaulted, so they are not recorded on your credit file, it will just show the default status now till it drops off naturally.

    The balance of your account over a period of time may be shown by some CRA`s. but the default status trumps everything.

    Your "score" rises and falls with any change and is only seen by you, and not used in lending decisions.
    Lenders score you using their own internal scoring systems the public is not privy too.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
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