Settlement offer on disputed debt
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Let_Robinson_Sing
Posts: 1,692 Forumite
Hello there,
Currently paying off some priority and non priority debts and have agreement with DCAs so they are being managed and they’re leaving us well alone
Another debt has come up sprung up on us,, we are currently at the pre-action stage but the threat of small claims action is looming. We have looked at the evidence we have and whilst there are some aspects we dispute we think they will succeed with most of their claim.
Attempted to negotiate with the creditor which has been fruitless aside from a settlement offer from them which has taken the outstanding balance down by 30%.
Given the likelihood that they’ll succeed is it worth paying the settlement to prevent court proceedings? The funds are being borrowed off family so I’m worried that the creditor is going to inform other creditors which might cause them to question why their debts aren’t being treated the same. Personally I don’t want this to proceed because I don’t think we will be fully successful. Can’t be doing with the hassle of it all to be honest.
Cheers
Currently paying off some priority and non priority debts and have agreement with DCAs so they are being managed and they’re leaving us well alone
Another debt has come up sprung up on us,, we are currently at the pre-action stage but the threat of small claims action is looming. We have looked at the evidence we have and whilst there are some aspects we dispute we think they will succeed with most of their claim.
Attempted to negotiate with the creditor which has been fruitless aside from a settlement offer from them which has taken the outstanding balance down by 30%.
Given the likelihood that they’ll succeed is it worth paying the settlement to prevent court proceedings? The funds are being borrowed off family so I’m worried that the creditor is going to inform other creditors which might cause them to question why their debts aren’t being treated the same. Personally I don’t want this to proceed because I don’t think we will be fully successful. Can’t be doing with the hassle of it all to be honest.
Cheers
0
Comments
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Hi,
Creditors cannot share that kind of information, there is no structure for doing so, what type of debt was it, what proof have you asked for, what have they provided ?I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi there,
There are a few things to consider in this situation. First of all, the type of debt that has contacted you and how old it is. If you don't dispute the debt is yours, it may still be unenforceable due to its age. The Limitations Act 1980 states that if there has been a 6 year block of time since the debt fell due, with no written acknowledgement or payment to the debt and no county court action started, then the debt may no longer be enforceable through the county court and becomes known as Statute Barred.
If the debt is still enforceable, but you dispute some of it, then you should ensure that you should raise that dispute so that you don't pay money you don't agree with (but before you send a complaint, consider the limitations act and whether or not that letter could restart the 6 year clock).
And lastly, is it worth spending any money on settling a non-priority debt if there are priority debts to deal with? I appreciate that no one wants a CCJ, but if you already have other debts you are juggling then your credit file may already have defaults recorded and be damaged. The other debts could apply for court action at any time, so even if you did successfully settle this debt, it wouldn't prevent other debts chasing through the courts later on.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Thank you both for the replies.
The debt wouldn!!!8217;t fall under the limitations as it!!!8217;s a relatively recent matter arising out of a dispute over work carried out by an individual rather than for a loan.
They have sent some evidence and whilst there are some aspects that they won!!!8217;t succeed on I don!!!8217;t think the value of those will equate to what the creditor has knocked off for now.
That!!!8217;s a fair point about other creditor!!!8217;s applying for a ccj at anytime. Hadn!!!8217;t thought of that as they are being paid.
I!!!8217;m still thinking that this matter is better being settled sooner rather than later and see what happens with the other ones.0
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