letters from Natwest

JACKIEN_2

Hi, we had a debt with Natwest, they took us to county court about 10 years ago where it was agreed we pay £20 per month which we have done every month and they were allowed a charge on our house till the debt is paid. Because my husband became disabled so we are now on benefits the Natwest agreed in writing to let us pay it off at £10 per month. Over the last 12 months we have had 3 letters asking us to make them an offer to pay a lump sum so they can bring this debt to a closure, they say they are prepared to accept less than we owe which now stands at £3,054. I have rung them to ask what they will accept but say we will have to make the offer. in writing. Could you advise if I should make an offer and if so how much. We do not have a lump sum but if the sum they would accept was low enough I could borrow it from my father as it would be good to get the charge off our house and be free or Natwest

thankyou

GeorgeUK

Hi Jackie.

When making any offer like this, please remember that you should never pay anything until you have a letter confirming both the amount and that it is a "full and final settlement". Partial settlement is no use to you and definately never send payment before receipt of the letter.

That said, it may depend on how much your father can afford to loan you. I'd be tempted to offer about £700, with negotiating a max of £1,000. You are not the ones looking for this but as you say, if it is going to save you in the long run...

If they demand up to 50% - remember, they were the ones seeking closure not you. Don't let them bully you into anything and definately not into borrowing money to pay this off. Find out if your father can afford to loan you money. If he can only offer £300 then make that your offer.

JACKIEN_2

thankyou for your advice. My father would only be able to loan me about £350 do you think they may accept an offer as low as that? I am worried that if I dont settle they could send debt collectors or make my life a misery even though the court said £20 per month

standupguy

I think the bank want to write this debt off now as the admin costs of pursuing this are uneconomic to them.

Before they do this they are trying to get as much in as they can by this one last tactic.

In view of your circumstances I would offer them 12 months payments of £10 in one lump sum - that is £120 "in full and final settlement and subject to the release of the charge on your property"

I think they will take that.

Good luck

oscar52

I really cant see them settling for 4% of the outstanding, though I do see where you are coming from regards administration. I would do as jackien stated and start with an offer of around 25 - 30% - roughly £700 - £750 and see what their response is.

GeorgeUK

It was agreed in court that you would pay £20 per month
Natwest agreed to reduce that to £10.

If Natwest send in the debt collectors, at the end you could be taken to court where... you will be asked to pay what you can afford. No Jail, no public executions. If the court decided on £20pm before and your situation has got worse, i can't see them increasing it.

If you have £350 available then that is the most you should offer.
Tell them that you are borrowing this from a family member and don't think you'd be in a position to make the offer again in the future. If they try to haggle, just stand firm - you can't afford any more, there is no more money available. If they dont want it they don't need to take it, but that is the best offer you can make.

If they're not interested then so be it. If they sold this debt on to a DCA they probably wouldn't get that much for it anyway.

The worst they can do is say no.

good luck
George

JACKIEN_2

If they sell my debt does the county court judgement still stand or can the new people change it and insist on more from us, I dont think I can cope with hasstle as I have enough on my plate with my husbands illness but I will do what you have advised and not be bullied as long as I know where I stand I will take your advice THANKYOU