SETTLEMENT OFFER - MOORCROFT

Are_We_Doing_Ok_For_Money

Good morning everyone.

So, i have been sent a letter from Moorcroft debt recovery about a settlement offer for one of my debts.

The debt is for a Virgin Credit card that has defaulted and currently being taken care of by monthly payments through my DMP.

The outstanding figure that i owe for this credit card is £4960, and Moorcroft has stated in this letter that they will accept £1984 to settle and clear the remaining balance.
Few questions...

- If i was to pay this £1984, how would that sit with the other creditors on my DMP? Would they then expect more money from me?
- I understand this will show on my credit file as partially settled, how damaging is this for future reference? 
- I have 45 days to try get this £1984 in order for them to accept the settlement offer, in all honesty i will struggle to find this amount of money in 45 days. I am wondering if i could get in touch with Moorcroft and ask if they would keep it open for another month or so?

Interested to hear your thoughts or experiences on this.

kimwp

How are you planning on getting together the money?

Are_We_Doing_Ok_For_Money

kimwp said:

How are you planning on getting together the money?

1. working my backside off, 
2. selling things,
3. partner helping me out with some,

kimwp

Are_We_Doing_Ok_For_Money said:

kimwp said:

How are you planning on getting together the money?

1. working my backside off, 
2. selling things,
3. partner helping me out with some,

Thanks. It's up to you whether it's worth the hassle.

I don't think the other creditors know what you pay. 

Hopefully some people who are more experienced with Moorcroft and f&fs will come along, but don't forget that you have the power here. Remember that this comes without personal experience, but I would look at what is do-able and offer them that. For example if you could get together £1500 in that time, see if they will take that instead. Remember though to keep an emergency fund.

fatbelly

These sort of deals are always available on defaulted debts. 

Why not create a fighting fund by 

1. working my backside off, 
2. selling things,
3. partner helping me out with some,

and then start making offers to all your creditors at 25p in the £

I recommend the ND sample letter

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

Rob5342

Make sure you keep things in perspective. The point of a DMP is that you pay what you can afford and have enough left over for everything else. If you pay a large sum off now you could run the risk of leaving yourself short when you need the money for something else. Also remember that they want you to think it's a one off deal to get a payment out of you, but there will be lots of opportunities to make offers to all your debts.

I'd suggest waiting until you have a lump sum that you are happy you could easily afford to pay and offering that to one of your creditors. If they don't accept try someoe else, and if nobody does keep saving and try again later. It's tempting to try and pay some off early, and that's a very good idea in some circumstances, but you need to make sure what you do is sustainable to the end.

sourcrates

The fact they are offering to settle a near 5k debt for less than 2k makes me suspicious.

That gives a strong hint they may not be able to provide legally enforceable paperwork for this debt, have you CCA`d any of your accounts yet ?

You should do so, before settling anything.

Charliet2022

Hi, just wondered if you had an update. I am now in a similar position. Thank you 

runforlife

sourcrates said:

The fact they are offering to settle a near 5k debt for less than 2k makes me suspicious.

That gives a strong hint they may not be able to provide legally enforceable paperwork for this debt, have you CCA`d any of your accounts yet ?

You should do so, before settling anything.

Yes, I had Cabot offering 80% off over £6000 debt. CCA’d them and they replied saying they hadn’t got it. Haven’t heard from them now in 2 years.

Sly72

runforlife said:

sourcrates said:

The fact they are offering to settle a near 5k debt for less than 2k makes me suspicious.

That gives a strong hint they may not be able to provide legally enforceable paperwork for this debt, have you CCA`d any of your accounts yet ?

You should do so, before settling anything.

Yes, I had Cabot offering 80% off over £6000 debt. CCA’d them and they replied saying they hadn’t got it. Haven’t heard from them now in 2 years.

who was the original debt with?

Jones_222

runforlife said:

sourcrates said:

The fact they are offering to settle a near 5k debt for less than 2k makes me suspicious.

That gives a strong hint they may not be able to provide legally enforceable paperwork for this debt, have you CCA`d any of your accounts yet ?

You should do so, before settling anything.

Yes, I had Cabot offering 80% off over £6000 debt. CCA’d them and they replied saying they hadn’t got it. Haven’t heard from them now in 2 years.

Once this happens and they can't provide the CCA do you then just stop paying the debt and forget about it?