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Old Debt - Offer To Pay Less Received
Daisy_Daisy_2
Posts: 151 Forumite
Hi, sorry, long winded background before the question!
- I have an old debt that dates from when I had a small business about 18 years ago. it started out with lloyds at about £17000 and because i had little money at the time i started paying back at £25 a month which increased slowly and now I am paying £59 a month.
At some point the debt was passed to a credit control company called CCS Collect. The debt is now at £11060.
I have some money left over from a re-mortgage that is supposed to be used for home improvements, but i thought I would see if they would accept a lump sum in final payment since the monthly payment was due to go up to £69. I could really only spare about £2000 so that is what i offered (bit cheeky really) but of course they wrote back and said they would only accept £7742, which i could not afford.
so I wrote back to say that this was too much and i would carry on paying monthly, and that I needed to negotiate the monthly payments not going up. Then i had a phone call from them saying had i not recieved a letter about a 50% offer, paying just half the debt to get rid of it.
No i said can you send me the details, and i will have a look. They said it was only available for 14 days as the debt was going to be returned to Lloyds for probable legal proceedings
I recieved the details yesterday, the offer states that a payment of £5530 would clear the debt. They also sent a letter that my 'offer' of £5530 was accepted, even though i had not agreed to anything.
My Question is (hurrah, she's got to the point!), is it worth me writing back to offer a lower figure, since they have dropped their figure once already?
Or should I take the offer and pay it, which i can just do, even though it leaves me with no money for home improvements?
And what happens if the debt is returned to Lloyds?
thanks
- I have an old debt that dates from when I had a small business about 18 years ago. it started out with lloyds at about £17000 and because i had little money at the time i started paying back at £25 a month which increased slowly and now I am paying £59 a month.
At some point the debt was passed to a credit control company called CCS Collect. The debt is now at £11060.
I have some money left over from a re-mortgage that is supposed to be used for home improvements, but i thought I would see if they would accept a lump sum in final payment since the monthly payment was due to go up to £69. I could really only spare about £2000 so that is what i offered (bit cheeky really) but of course they wrote back and said they would only accept £7742, which i could not afford.
so I wrote back to say that this was too much and i would carry on paying monthly, and that I needed to negotiate the monthly payments not going up. Then i had a phone call from them saying had i not recieved a letter about a 50% offer, paying just half the debt to get rid of it.
No i said can you send me the details, and i will have a look. They said it was only available for 14 days as the debt was going to be returned to Lloyds for probable legal proceedings
I recieved the details yesterday, the offer states that a payment of £5530 would clear the debt. They also sent a letter that my 'offer' of £5530 was accepted, even though i had not agreed to anything.
My Question is (hurrah, she's got to the point!), is it worth me writing back to offer a lower figure, since they have dropped their figure once already?
Or should I take the offer and pay it, which i can just do, even though it leaves me with no money for home improvements?
And what happens if the debt is returned to Lloyds?
thanks
I often think about The Samuel Vimes 'Boots' Theory Of Socio-Economic Injustice. :cool:
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Comments
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You could try writing to them, make sure you write without predjudice on the top of the letter!Got Halifax Classic to reduce my interest rate by 5% woohoo - 10/06/08 Thanks MSE!
Another 3% shaved off 10/12/08
ANOTHER 4 % June 09:beer:0 -
Daisy, Daisy, Stick with it, go for a reduced offer, they are being 'receptive' and are looking for a quick way out - remember though, do not settle for partial settlement offer as they can and will come back for the rest at a later date - please keep me informed of this as I am going through the same with HSBC, loads of luck, you can only but try - oh, remember to send your letter Recorded Delivery.
Opinions are like bottom holes, we all have one 0 -
Yes I have had many of these offers over the years. From my personal view all i can say is that they seem pretty arbitrary, i.e. based on some notional calculation or critria ,which can vary from offer to offer.
I would also say that the hike in repayments has also to be agreed by you, and if you feel that it will put undue pressure on your finances then it is well within your rights to remain at the lower rate.
One company was asking for over £69 from me in the end settled for £20 as stated it was too big a burden and could lead to a possible future default, which was true enough. So don't think for a moment you can be bullied into higher payments.
In the current financial climate, you have more clout than you may think you have. I am not suggesting default in anyway whatsoever, but DO stand your ground, you do have rights...and yes they do want the dept cleared...so go for it..with confidence which ever decision you make... and GOOD LUCK.0 -
Also make sure it is for Full and Final Settlement - just incase they're trying to slip one past you.After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91
Dad Gift 6k ¦ Savings & Inv Tst: £2,500
Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0
Total Owed: £2,270 (+6k) 11/08/20110 -
thanks guys, I had talked it over with OH tonight and we decided to try a lower offer, so you have just confirmed what i thought.
thanks for the support, will keep you posted, though I am sure they will take a while to write back!
Here Goes. . .I often think about The Samuel Vimes 'Boots' Theory Of Socio-Economic Injustice. :cool:0 -
OK, letter has gone off - I have offered £3318 (being 30% of the original), let's see what they say!I often think about The Samuel Vimes 'Boots' Theory Of Socio-Economic Injustice. :cool:0
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update
Oh well CCS didn't go for it - the offer was rejected
I will have to go back to monthly payments.
They are still trying to put the payments up, even though I have said I can't afford it. They tell me they can increase the payments when they like. And that as I havn't complained before then i must be ok with it!
I know that i owe the money and i must pay it back, but my mortgage has just gone up and can't afford more than £60 a month.
they also tell me that i must supply my own review, they won;t send me a form. They also tell me I must pay the 2 month arrears at the new rate
Are they pulling a fast one? Where do I stand Has anyone please got any ideas on how I should reply in a letter?
thanksI often think about The Samuel Vimes 'Boots' Theory Of Socio-Economic Injustice. :cool:0 -
Don't have any advice I just wanted to say that I love your sig, the guards books are my favourite Pratchetts.Unless I say otherwise 'you' means the general you not you specifically.0
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Hi, does anyone have any further advice, as I need to send them a letter soonI often think about The Samuel Vimes 'Boots' Theory Of Socio-Economic Injustice. :cool:0
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YOU HAVE MORE THAN THE MONEY...'FOR HOUSE IMPROVEMENTS' Whatever that is when its at home..rather than repay the loan you signed for then defaulted on...
They have offered you 50% for 14 days and still not happy...???
What do you want people to say...??0
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