Settlement Offers

ThirstyElephant

Hi, I’ve been paying a DMP for just over 2 years and I now have almost half of the remaining figure available to settle the remaining balances. All debts have defaulted. 

I’ve sent f&f offers (40%) to all creditors and I’m not getting very far with them, they’re slow to respond and some have rejected. The only one to accept was Cabot which I have now paid. 

Some have asked for an income and expenditure form which I don’t particularly want to share with them.

My question is, if I cancel the DMP, what is likely to happen? Would they chase me quicker? Offer partial settlements? Add interest? 

I’m just sick of waiting for them to come back to me and want it all cleared ASAP. 

Thanks in advance.

Grumpelstiltskin

Often in these circumstances it wakes them up if you stop paying them.

I hope you DMP is with a free  charity, and have you checked if the debts are enforceable?

sourcrates

ThirstyElephant said:

My question is, if I cancel the DMP, what is likely to happen? Would they chase me quicker? Offer partial settlements? Add interest? 

I’m just sick of waiting for them to come back to me and want it all cleared ASAP. 

Thanks in advance.

Well, collection activity will re-start, that means letters/calls etc.

These companies do not respond quickly to anything, its about a two month turnaround to respond to a letter, which is why I fail to see any need for people to rush into things, as the world of debt collection is particularly s l o w.

They can`t add interest, once a debt defaults that balance is set in stone, consumer credit agreements do not allow for 3rd parties to add interest after default.

Its likely they will re-start standard collection letters, which will at some point start to offer discounts I would imagine.

Its very easy to get frustrated with the likes of Cabot for the very slow pace they work at, stop paying, see what happens, there will always be plenty of time to respond to anything they may say.

Have you done CCA requests on all your debts yet?

That is normally a pre-requisite before you make any offers to settle.

fatbelly

As things stand, how long will it take to pay your debts in full through your dmp?

The reason for asking is that your settlement offer has to be a clear advantage to them. For instance, if the debt is due to clear in 2 or 3 years then they will just let it run. If it will take 100 years, the attitude may be different.

ThirstyElephant

Thanks all.

DMP is with StepChange.

I’m yet to request CCA’s, my understanding was to request them when they reject offers, but perhaps I misunderstood. 

As it stands, 10 years to pay everything I owe if I continued with the DMP as it is, but I haven’t done a ‘review’ for almost 18 months, which StepChange have been chasing me to do. 

fatbelly

So if you do a review, has your disposable income gone down?

Most have as wage increases are generally a lower percentage than increases in

Food prices
Council tax
Rent
Electicity
Gas
Water
Transport costs

You probably need to do a review

ManyWays

The lower your payments to Stepchange, the more likely your creditors are to accept an offer. So if a review may lower what you pay, do this now. 

Rob5342

ThirstyElephant said:

I’m just sick of waiting for them to come back to me and want it all cleared ASAP. 

That's what they are counting on, they wont agree quickly if they know that dragging their feet will prompt people into paying more. 

It's all a long game. Make CCA requests to start with, any that can't produce it can just be ignored. If any reject your offer then stop paying or significantly reduce your payments and try again in another 6 months.