ARC..nationwide loan debt and reduced settlement letter?

agentblackcat

Hi.

As someone just starting on this journey. I have today received another letter from ARC. I told them that I was taking advice etc and would get back to them when I was ready to set up repayment plan. Loan has defaulted as of June 24. Are ARC collectors or will they have bought loan from Nationwide? Just think its odd to be sent a letter offering a substantial discount? 

Thanks 😀 

stu12345_2

if arc had bought the debt you would have got a letter from both nationwide and arc to say the debt has been legally assigned from one another.

if not then they are a debt collector for nationwide.

they are offering a discount either because the debt isn't enforceable or they are trying to gain credibility from creditors like nationwide that they can collect debts fast for them.

sourcrates

ARC just collect debts, they will have been authorised to offer this discount by their client, Nationwide in exchange for a quick settlement.

You can choose to engage, or wait until they sell the debt, its up to you.

Rob5342

When my Nationwide account defaulted they got ARC to collect from them. They word the letters to prompt contact from you, but their definition of substantial is likely to be quite different to yours. I'd ignore it personally, they are just trying to see if they can get more out of you than a debt purchaser would buy the debt for. If you pay a small amount to a debt purchaser for a few years then they will probably accept a lowet settlement than ARC would accept. 

agentblackcat

sourcrates said:

ARC just collect debts, they will have been authorised to offer this discount by their client, Nationwide in exchange for a quick settlement.

You can choose to engage, or wait until they sell the debt, its up to you.

Thanks this is exactly what I thought would be the case. 

Rob5342 said:

When my Nationwide account defaulted they got ARC to collect from them. They word the letters to prompt contact from you, but their definition of substantial is likely to be quite different to yours. I'd ignore it personally, they are just trying to see if they can get more out of you than a debt purchaser would buy the debt for. If you pay a small amount to a debt purchaser for a few years then they will probably accept a lowet settlement than ARC would accept. 

Yes I am thinking I shall ignore it just now. Van I ask what happened with your Nationwide debt? Did it get sold on? 

Thanks

Rob5342

I was very lucky with it, I made an affordability complaint which ultimately led to an interest refund that cleared the whole balance.