Settlement Offers

saving_88

Hi, I've decided to pay some defaulted creditors and settle some accounts. Previously i didn't bother because they were defaulted and any payments were not going to improve things. But I'm thinking if smaller offers, it means what I pay into a dmp, more of that will go towards the larger debts i have if some creditors are off it. 

So here they are, Any advise please on acceptable offers.
Capital One Debt £189. I propose to offer 100 on defaulted account
Capital One card £495- I propose 300 on defaulted
Link Financial £647- I offered 450 Rejected with Counter offer of 600- I wont pay this
Lantern £554- I propose 350

Is this realistic. Or what is the best offer i should give to these debtors. Most accounts been defaulted for a year now. They get £1 from my DMP. 

Rob5342

First things first, have you made cca requests? If they can't produce the cca then they can't enforce the debt so you can simply ignore it it and stop paying completely. 

saving_88

Rob5342 said:

First things first, have you made cca requests? If they can't produce the cca then they can't enforce the debt so you can simply ignore it it and stop paying completely. 

Hi, I have not done CCA request. But this is my debt. I chose to spend on luxuries. I couldn't afford payments and went on a DMP. These debts are defaulted because i simply didn't pay the creditors full amount. CCA request will show it my failt probabbly,.

fatbelly

A 'cca request' is nothing to do with 'whose fault it is'

It is a formal request, under s77-79 of the Consumer Credit Act for them to provide a copy of the original credit agreement. This is your statutory right as the law stands.

If the creditor cannot comply, because the agreement does not now exist or never did, then the debt is unenforceable.

You should concentrate on the ones that are enforceable

There is a template letter here

https://nationaldebtline.org/get-information/sample-letters/information-about-your-agreement-under-consumer-credit-act/

ProcessMatters

A CCA request isn’t about blame or avoiding responsibility — it’s about establishing what’s enforceable before you negotiate.

Even if you intend to settle, knowing whether an agreement is enforceable affects who you prioritise and how hard you negotiate. Creditors who can’t currently enforce often accept lower full & final settlements, because their alternative is prolonged low DMP payments.

Separately, it’s worth being clear on expectations: settling defaults (whether in full or partially) doesn’t remove the default, it just marks it as satisfied or partially settled. The main benefit is reducing ongoing pressure and shortening how long the debt follows you operationally — not immediate credit score repair.

In practice, many people:

confirm enforceability first

prioritise enforceable debts

use lump-sum leverage for discounted settlements

keep everything in writing with confirmation of “full and final” terms before paying

That way you’re paying deliberately, not just quickly.

RAS

Also, you are making offers which encourages the creditor.

You could wait until they make offers. Or start at 20% and see what the counter offer is?

ManyWays

2 capital one cards , it's always worth making an affordability complaint to say they should never have given you the second one.
you may feel this is all your fault as your spending was out of control, but lenders encouraged this by lending you too much without making the checks the regulator says they should.

What are the larger debts in your DMP? 

saving_88

Thanks for replies. i will get CCA first and then see. I know defaults wont go after i pay off. I was just going to settle to be a debt free, then more of my money can go to the larger debts. So the general advise is just wait until defaults are near to end to settle 

ManyWays

I think the general advice (in so far as there is a consensus here!) is to ask for CCA agreements for any debts that have been sold to debt collectors. 
And make any affordability complaints soon.
But wait a bit longer before making any settlement offers as 2 years is better than 1. 

bcs7

saving_88 said:

Hi, I've decided to pay some defaulted creditors and settle some accounts. Previously i didn't bother because they were defaulted and any payments were not going to improve things. But I'm thinking if smaller offers, it means what I pay into a dmp, more of that will go towards the larger debts i have if some creditors are off it. 

So here they are, Any advise please on acceptable offers.
Capital One Debt £189. I propose to offer 100 on defaulted account
Capital One card £495- I propose 300 on defaulted
Link Financial £647- I offered 450 Rejected with Counter offer of 600- I wont pay this
Lantern £554- I propose 350

Is this realistic. Or what is the best offer i should give to these debtors. Most accounts been defaulted for a year now. They get £1 from my DMP. 

I'm not surprised by the response from Link Financial.
In my dealings with them (and from other posts about them on this board) they appear to be very stubborn with settlement offers and will wait it our for sometimes years in the hope you'll get frustrated and pay up the high amount they want.

saving_88

ManyWays said:

2 capital one cards , it's always worth making an affordability complaint to say they should never have given you the second one.
you may feel this is all your fault as your spending was out of control, but lenders encouraged this by lending you too much without making the checks the regulator says they should.

What are the larger debts in your DMP? 

I will try this complaint to Cp One. 
Largest debts are PRA 5600, Advantasis 5400, Ratesetter 6100. I wont be settling these soon. Will let them drop off tbh and carry on a dmp with them.