Part Settlement Offers

freddie2020

Hi,

Been ringing round creditors in my DMP regarding part settlement. 

One has agreed to 20% just off phone call.
Generally average is 50%
One only offering 80%
One will only consider anything after income report. 

With the 50% +  ones, how might try to reduce more?

Some said this is our final offer  - shall I send them a income report anyway? ect...

If I ring up and say I can offer 30% here and now, settling over the phone.
Might they agree to instant settlement at lower amount

Thanks

Rob5342

You could try phoning, you might have some luck but they can be stubborn. Saying it's their final offer is just a negoting tactic, they will be open another offer later. If you don't get anywhere then reduce your payments and try again in 6 months time, they are probably more likely to accept when they can see it will take a long time for them to get their money back. 

Grumpelstiltskin

Before you think about paying have you checked the debts are enforceable?

Have you requested and received CCAs for loans and credit card debts?

freddie2020

Rob5342 said:

You could try phoning, you might have some luck but they can be stubborn. Saying it's their final offer is just a negoting tactic, they will be open another offer later. If you don't get anywhere then reduce your payments and try again in 6 months time, they are probably more likely to accept when they can see it will take a long time for them to get their money back. 

Have already been in a DMP for 10 years...
20% of the debt already paid off under DMP

Paying a small amount each month, would have to go to £1 per month to get any lower, to be honest...

Currently would take till 2067 to fully repay the debt.  

freddie2020

Grumpelstiltskin said:

Before you think about paying have you checked the debts are enforceable?

Have you requested and received CCAs for loans and credit card debts?

Not yet - however from reading a bit online, feel this tactic is a bit old in the tooth  (please correct me if wrong)

I guess coudl try it anyway...

Rob5342

freddie2020 said:

Grumpelstiltskin said:

Before you think about paying have you checked the debts are enforceable?

Have you requested and received CCAs for loans and credit card debts?

Not yet - however from reading a bit online, feel this tactic is a bit old in the tooth  (please correct me if wrong)

I guess coudl try it anyway...

The older the debt is the more likely it is that the cca can't be found, it's also less likely if the debt has been sold numerous timea. 

It's always worth trying if you are considering making a settlement offer. The debt collection companies would like you to think it won't work but some people have haf success with even quite recent debts. If you agree lucky you could save yourself quite a bit of money. 

fatbelly

S77-79 requests under the Consumer Credit Act may well be 'long in the tooth' as they came in with the 1974 Act and are due to be abolished if the present government gets their way.

However, for now, they exist and are an effective strategy for us, where relevant.

National Debtline has guidance here

https://nationaldebtline.org/get-information/guides/credit-agreements-getting-information-ew/