DMP Settlement help needed please

chris163

Hi everyone,

I wondered if anyone could give me advice as to the situation surrounding settlements please?

I’ve been in a DMP for just under 4 years that started at £29k. It is now down to £10.5k and I have 2 creditors, these being Moorcroft (for a NatWest Credit Card and overdraft) and First Source Solutions (for an Amex Credit Card). I believe that the Amex debt was purchased by them and has changed hands twice. I am not sure of the situation with Moorcroft.

I just wondered in peoples experiences what would a realistic amount be to settle these debts? A relative has said they may be willing to help me, though I’m not sure of amounts. In any case, a likely percentage would be a great help!

All accounts were defaulted back in 2019. From what I understand despite them being Partially Settled, this would completely drop off my credit file after 6 years of the default, NOT the Partial Settlement?

many thanks for your help!

RAS

If you aren't sure of the status of the debts, please check that with the three credit record companies. You can do this for no charge via the MSE credit club, Clearscore and Credit Karma. There is a page in Borrowing, Loans section of MSE. Then report back.

WYSPECIAL

How much have you got that you can offer them?

sourcrates

It`s quite likely that Moorcroft will only be managing the NatWest debt, if it was sold to them, you would have been informed in writing, a clue will be who is reporting to your credit file, only the debts owner can do that.

If the debt is being managed, it changes things slightly, in that they will have authority to bargain to a certain point only, after which client approval must be sought, and managed debts always settle for more, as they have not been sold, so the client cannot afford the larger discount a debt purchaser could potentially offer.

You will first need to know how much you can obtain, it will then be a case of starting low, and sticking to your guns, if an offer is refused, try again in 6 months, its not a quick process unfortunately.

chris163

WYSPECIAL said:

How much have you got that you can offer them?

I think around 40% max 

sourcrates

First ascertain ownership of each account, then submit CCA requests.

Next step is dependant on outcome of CCA`s.

chris163

My DMP is managed through Stepchange. Would you say it would be worth me contacting them to negotiate or go through the process directly?

Grumpelstiltskin

sourcrates said:

First ascertain ownership of each account, then submit CCA requests.

Next step is dependant on outcome of CCA`s.

Chris do what Sourcrates said first before you contact Stepchange.

sourcrates

chris163 said:

My DMP is managed through Stepchange. Would you say it would be worth me contacting them to negotiate or go through the process directly?

No, definitely not, and I will tell you why, stepchange have a methodology of treating every creditor fairly, so it goes against their operating principles to pay less than is owed, it makes negotiations impossible.

You would also have to pay your money directly to them, and they would disperse it to creditors, it may not cover what you owe, which is why you should do this yourself, then you are certain what funds you have will clear your debts, there will be no doubt in your mind, you won`t be left with a shortfall due to bad negotiations.

In essence you keep going until your 40% is accepted in full and final settlement, to do this you must be canny, and patient, and follow the right process, it can take time, but you are asking a lot remember.