Problem With Settlement Offers?

Legacy_user

I was phoning some DCA's today, some will accept my settlement offer of 50p per pound, but say there is no guarantee that the original creditor wont pass it on to another DCA for the remainder, Then there problem with some creditors wont accept any reduced offer.

Any advice?

freddy08

When you phone the DCA's I would start at 30% and work up to a maximum of 50%. If they accept your offer ask them to put in writing to you that they are accepting this amount as "full and final settlement of the debt".
When you have paid them ask them to put in writing to you that the debt has been settled and your credit reference file will be ammended accordingly. Best to pay with a debit card rather than a cheque so you have proof from your bank statement that you have paid them.
Its sounds like what they have told you about the original creditor is just tactics on their part, remember a debt collection agency is a business like any other and if they can scare you into paying the full amount they will make the maximum profit from this debt.

thepinkladez_2

i am no expert on this as just about to do the same but just wanted to say i have been told never to pay by a card as then they have your details and can use it to pay full amount instead? like i say i am no expert but i am sure someone wiser than me, will be along to confirm or deny this.

Cleosmum

You need to make it clear that you are after a settlement figure for full and final settlement, get it in writing though, dont pay a penny on the phone as you want it in writing first.

freddy08

thepinkladez wrote: »

i am no expert on this as just about to do the same but just wanted to say i have been told never to pay by a card as then they have your details and can use it to pay full amount instead? like i say i am no expert but i am sure someone wiser than me, will be along to confirm or deny this.

If they did this it would be fraud, if you have the letter that they will accept X amount and then they take more. When I paid off a DCA though this did occur to me & I moved the money to another account where there was no more money available so if they tried to take more it would simply be declined. DCA's are not crooks so I feel it would be unlikely that they would do this.

stapeley

hi , first thing is as said loads and loads of times on the site , NEVER RING DCA . Any offer or agreement made over the phone ,IS NOT WORTH THE PAPER ITS WRITTEN ON . The person you speck to is only an operator with no power to agree the date let alone a offer . Now these people have your phone number,and they know you have a lump sum the will put even more pressure on you to pay more . Its also advised not to give any of them your debit card details .It has been know that some have taken more than the agreed amount . You must post more details of who you are dealing with before you go any further , remember some of these companies will not be able to provide proof of the debt ! ALSO CHECK WHOS GIVING YOU ADVICE someone who been using the site 5 mins is not the best person for advice . good luck

freddy08

I was advising nirelandguy based on my personal experience of debt. I dealt with the DCA's myself & they agreed full and final settlements of between 30 & 50%. I never gave them my phone number & if you read my first post you will see that I advised him to get agreements in writing not over the phone.
I may be new to this site but I was not born yesterday stapely.

stapeley

Sorry I did not mean to be rude . But you do start by saying , "When you phone the DCA,S" Later you say "Best to pay them with a debit card " . My point being, if you had been on the site longer , you would have read the posts that have warned about DEBIT CARDS and settlement offers .

There is a guide availabe from CCCS , email them and they will send a very good guide on th e settlement offer process. I would also look at CCA requesting the DCA , IF THEY CAN NOT PROVIDE A TRUE COPY OF A CCA , the debt could very likely be unenforceable .

I am certainly no expert ,but have been thanked 204 times in 184 posts .

freddy08

No problem stapeley, I am no expert either. Like I said my advice was purely from my own experience. I'm sure nirelandguy will look through this excellent forum & find the best way to go about solving his problem.

10past6

For those requesting settlement figures, NEVER EVER SPEAK TO A DCA / CREDITOR ON THE PHONE.

Send the letter below, amending it with your own personal details.

Your Address

Date

DCA / Creditors Address

Dear Sir/Madam

Ref a/c: xxxxxxxxxxxxx

We write with reference to the money which you are claiming on the above account.

We can confirm that we are unable to offer to pay the money which we owe in full. However, I can raise £xxx and I want to offer this as an ex−gratia payment in full and final settlement of the account.

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

We look forward to receiving your reply.

Yours faithfully

Send by recorded delivery

stapeley

The CCCA advice is to list ALL your creditors and show you are treating them all fairly . PLEASE READ THEIR ADVICE .