Advice on making settlement offers to 3rd parties

np1v08

Hello!

I have 4 individual debts that were sold to 3rd parties by the original lenders several years ago. I have submitted CCAs, and unforunately, they were all able to provide the signed credit agreements (I don't feel too bitter though because I did get lucky with quite a few of my other debts!). None of these debts were defaulted either so they are still being reported to the CRAs each month.

I am now in a position to make a settlement offer to clear them all but I would appreciate your collective wisdom and experience in making successful lower settlement offers than the standard 20% "discount" offer I periodically receive. I'll put a list in below of what the debts are, who they're owned by now and the balances outstanding (give or take as I have made payments recently). Should I make a really low-ball offer (e.g. 10%-20% of the balance) and hope they meet me in the middle? What worked for you? Any insights, tips or strategies (e.g. how to make the offer - is it better done over the phone or in writing, or best time of the week/month to make the offer?) would be greatly appreciated.

Many thanks!

A/C Name	Balance
Link Financial Outsourcing (Newday/House of Fraser Store Card)	£1,353
Link Financial Outsourcing (Shop Direct/Very)	£2,179
Intrum UK (Creation Loan)	£1,180.57
Intrum UK (Creation Credit Card)	£917.14

Grumpelstiltskin

You say none of the debts have defaulted, does this mean you are still making payments towards them?

ManyWays

None of these have a default date on your credit report?

The amount you are paying to them is key in what they may accept.

sourcrates

If the debts have not yet defaulted, then both you and the lender are still bound by the credit agreements pertaining to each account, so settlement is only possible at 100% currently.

Once they default, that is a different matter, Intrum and Link, normally stick with acquiring defaulted debts, but it seems they are now buying up accounts at all stages of the credit cycle, are they still charging you interest?

np1v08

https://forums.moneysavingexpert.com/discussion/comment/82120839#Comment_82120839

Yes, I am. They are the remaining debts in my DMP. All the others have defaulted and didn't have the CCAs so as soon as they dropped off my credit files I wrote to the companies and advised I wouldn't be making further payments since the debts were unenforceable. I have repaid c. 80% of my debts over the last 6 years.

np1v08

https://forums.moneysavingexpert.com/discussion/comment/82121011#Comment_82121011

No, they don't and I don't want them to default now because all my other defaults occurred in 2019/2020 and so they've all dropped off my credit files. In fact, it would be a disaster if I did get a default now!

Good point re how much I'm repaying each month. Here is the breakdown:

Link/Newday House of Fraser card - £50.00

Link/SDFC (Very) - £80.49

Intrum/ Creation Credit Card - £36.57

Intrum/Creation Loan - £47.07

np1v08

https://forums.moneysavingexpert.com/discussion/comment/82121031#Comment_82121031

No, the debts have not defaulted yet, and I don't want them to because all my other defaults were in 2019/2020 and have dropped off my credit files. Interest has been frozen and I've been making the regular agreed monthly payments (as per the DMP). They have been sending me settlement offers periodically always offering a 20% "discount". I've ignored them all so far because I didn't have any available funds to consider a settlement. Now I have some spare money to clear them but given how much I've already paid back and the fact they bought the debt for pennies in the pound, I was hoping to make a lower offer.

RAS

Have you checked your credit records recently? How are these debts reported?

You do understand that a default is removed from your credit record 6 years after issued even if you never paid a penny?

And that if your creditors have reported Arrangement to Pay or similar markers, they will stay on your credit record for 6 years after the debt is paid off?

So how are these debts recorded?

Rob5342

RAS makes a good point, if they are reported as arrangement to pay then that will stay for 6 years after you have paid them off and will have a similar impact to a default.

np1v08

https://forums.moneysavingexpert.com/discussion/comment/82121308#Comment_82121308

Thanks for your reply. I've re-subscribed to CheckMyFile so I can see the full dashboard across all 3 CRAs. In fact, only the 2 accounts now owned by Link Financial are being reported. They bought them in 2024 and they have been consistently reporting them as 'OK' each month not 'AR'. Shop Direct/Very was previously reporting as 'AR' until the sale in April 2024 when it was marked 'S'. Obviously, that will remain on my files untl April 2030. The Newday/House of Fraser storecard was only marked as being in arrears between April and August 2019, then it reverted to 'OK' until the sale to Link Financial in November 2024.

Regarding the 2 Intrum UK-owned accounts (the former Creation accounts), the loan account is showing as settled in March 2021, so will drop off next March. The Creation credit card isn't showing at all (I think it was one of my defaulted accounts). Intrum don't appear to report directly to any of the CRAs.

Yes, I was aware that defaults dropped off my credit files 6 years after they are applied. Fortunately, the majority of my other creditors defaulted my accounts in 2019 and early 2020, so they've all disappeared off my files. This is the only questionable/problematic data left on my records.

ManyWays

You are paying quite a lot a month to these. If you were owed 1000 and you were being paid 40 a month, you will get the debt repaid in full in 2 years. In that case why would you accept a low settlement offer?