Payplan and clearing debts

davetheman007007

Hi, does the below letter look ok as an initial contact to make a one of payment offer?

Dear Sir/Madam,

Without Prejudice
Account No: [account]

I am writing regarding the outstanding balance you claim I owe on the above account.

I regret to inform you that I am unable to pay the full amount. Following a recent divorce, I have had to relocate and change jobs, which has impacted my financial circumstances.

However, I am able to raise 50% of the amount owed, which equates to £500 in this case. This offer is made as an ex-gratia payment in full and final settlement of the account. I want to ensure fairness by offering the same percentage to all creditors.

This offer is made on the clear understanding that, if accepted:

• Neither you nor any associated company will take further action to enforce or pursue this debt.
• I will be released from any further liability.
• My credit reference file for this account will be updated to show the account as ‘satisfied’ in full.

Payment can be made in early 2025 upon receiving your written agreement to this offer. Kindly indicate your preferred method of payment.

I look forward to your response.

Yours faithfully,
[Your Name]

sourcrates

I doubt that offer will be accepted, you are still in contract with this debt, it has not yet defaulted.

Wait 6 months, make the same offer to whoever owns your debt at that time, and it might just be accepted

davetheman007007

Most have now sent me a default letter

davetheman007007

Some have sent a default letter but the owner has not changed

RAS

davetheman007007 said:

Some have sent a default letter but the owner has not changed

They may just be holding on for a while, they may be waiting until they have a large enough batch to sell, they may have already appointed in-house to collect but not got round to the paperwork.

Sit tight, you're not going to get decent full and finals at this stage. What's you shorter term plan?

Have you got a decent and growing emergency fund? Are your essential bills up to date? 

davetheman007007

All essential bills are upto date, I have not made any payments to Payplan for 2 months now and no payments made directy to creditors, I am due an investment return mid Feb 2025

davetheman007007

Any ideas on how I can stop the letters, I am getting around 6 a day!

Grumpelstiltskin

You can't stop all the letters, just open them to check they are not a letter before action then help to save the planet by putting them in the recycling bin.

RAS

Letters are potentially important. Creditors have to send you a scary letter demanding repayment of the whole sum before they are allowed to put a default on your credit record. And they have to send pre-action letters before taking legal action. Court documents are also sent by post.

Although you are unlikely to receive either of the latter and even defaults will take 3-18 months to come through.

If you can, put them in a box/folder, open once a week or fortnight and file by debtor. Come here if you get a pre-action letter. 

If you can't face that put them in the box or file, check the return address on the back and open anything that refers to the Northampton Bulk Processing Centre. Those are likely to contain court documents.

Meantime, understand that this action isn't targeted at YOU. It's just computer generated junk aimed at any account where the minimum payments aren't being made.

davetheman007007

Thanks, that is what I thought, I am thinking to send the offer letter out soon, hopefully this will help reduce