Creditors/DCA's offering reduced settlement figure?

NatashaP

Hello!

I keep getting letters through from my creditors and/or DCA's offering quite a substantial discount on my balances if I clear them within so many days. For instance, Lloyds have written to me this morning to tell me they will offer a reduced settlement figure if I call within 72 hours to make a payment in full to clear the loan. This is quite tempting as I'm planning on clearing the loan within a few months anyway, but I'm a bit wary too. My Lloyds loan is now with a debt collector. It is these who are offering the discount.

Will this be a wise thing to go ahead with? It seems strange that a dca is willing to accept alot less than what I owe, surely they'd then be losing out! Help! :rotfl:

maddysaver

Hiya
DCAs buy debts for a very small amount of the value - sometimes as low as 10%. Therefore they can afford to offer you a Full and Final without losing out - and it saves on their admin in the long term.

If you can afford their terms and want to accept then the important thing is to get it in writing from them that the amount will be paid in full and final settlement and they will mark your credit file as satisfied. This then means they can't decide to try and chase you for more later.
Good luck.