Vanquis settlement fee

Dangardens18

Hello looking for some advise.

I have a £4k debt with vanquis, currently not missed a payment in 65 months, no late payment either.

I have called twice in the past 6 months to raise my worries around not being able to manage it.

I have received some money from parents to try and clear debts. Called vanquis and they advised that they would remove 600£, making debt 3200. I advised I couldn't afford that and asked if they would accept 2800, works out 25% settlement discount. They have refused as my account is in good status, however if I become in debt for 31 to 90 days there policy allows them to offer me 25%. I challenged that they are making me get in debt before they will offer help and they agreed there policy is backwards! I even offered to accept settlement of 3200, allow me to pay 2800, and leave 400 which I could transfer to 0%. They said unless full payment of 3200 was received they would not be able to offer part settlement 

I have cancelled my direct debit but really worried about this now. Any advise on how to progress? Am I being unreasonable asking for 25% discount settlement?

MyRealNameToo

Yes on an account in good standing... default the account and they will become more amenable but whilst you are still keeping up with payments they dont have to consider allowing you to pay back less than you owe. 

CliveOfIndia

It's a tricky one.  On the face of it, if you've made all contractual payments for the last 65 months, it's understandable that it would not appear to be unmanageable.  As it stands at the moment, since you're making all contractual payments, what's their incentive to offer you a discount?

Dangardens18 said:

I challenged that they are making me get in debt before they will offer help 

To be pedantic, you're already in debt.  I think you're meaning "delinquent debt".

Dangardens18 said:

I have cancelled my direct debit 

In that case you'll soon default, which may well trigger their delinquency process and a possible offer of reduced settlement.  Bear in mind, this fact will be recorded on your credit file, making it extremely difficult to obtain further credit for the next few years.

 

born_again

Dangardens18 said:

Hello looking for some advise.

I have a £4k debt with vanquis, currently not missed a payment in 65 months, no late payment either.

I have called twice in the past 6 months to raise my worries around not being able to manage it.

I have received some money from parents to try and clear debts. Called vanquis and they advised that they would remove 600£, making debt 3200. I advised I couldn't afford that and asked if they would accept 2800, works out 25% settlement discount. They have refused as my account is in good status, however if I become in debt for 31 to 90 days there policy allows them to offer me 25%. I challenged that they are making me get in debt before they will offer help and they agreed there policy is backwards! I even offered to accept settlement of 3200, allow me to pay 2800, and leave 400 which I could transfer to 0%. They said unless full payment of 3200 was received they would not be able to offer part settlement 

I have cancelled my direct debit but really worried about this now. Any advise on how to progress? Am I being unreasonable asking for 25% discount settlement?

Just remember to balance out the fact by not paying you will have a non payment marker on your credit history. So getting further credit would be harder or face increase interest rates.

If you have received some funds, then make that payment to the debt & continue the same payments as you have before & the debt will be cleared a lot quicker.
Your credit history is still intact.

Until you default, they are not interested in a settlement, or everyone would be doing it.
Default & they will take a balanced view on the debt & maybe happy to get a large % of the debt. Instead of nothing. But they will still mark your credit file & history.