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  • FIRST POST
    • Weggy
    • By Weggy 19th Nov 05, 9:20 AM
    • 463Posts
    • 98Thanks
    Weggy
    Full and final settlement help thread
    • #1
    • 19th Nov 05, 9:20 AM
    Full and final settlement help thread 19th Nov 05 at 9:20 AM
    Hi all

    Am currently trying to negotiate with debt collection agencies, to get them to accept a full and final settlement figure. Does anyone have any tips on persuading them to lower their demands?

    Thanks

    Last edited by MSE Archna; 21-06-2006 at 6:41 AM.
Page 128
    • Rjhsteel
    • By Rjhsteel 5th Jun 19, 12:53 PM
    • 131 Posts
    • 11 Thanks
    Rjhsteel
    Sent off letters today offering 30% to the debts with credit agreements and 20% to the 3 without...

    Realistic?
    • Noella
    • By Noella 5th Jun 19, 1:11 PM
    • 125 Posts
    • 1,070 Thanks
    Noella
    Sent off letters today offering 30% to the debts with credit agreements and 20% to the 3 without...

    Realistic?
    Originally posted by Rjhsteel
    I assume you mean those without credit agreements are unenforceable debts. Is this based on CCA requests? Are you totally sure they are unenforceable or have the creditors just been a long time finding anything? I know they should comply in a certain timeframe but a lot don't! One of my DCAs wrote to me once a month for nearly a year telling me that the original creditor was trying to locate the necessary paperwork. I assumed it would end up being UE as it seemed unlikely they'd find anything. Sadly, they eventually sent a lot of stuff back and I had it checked by the All About Debt website experts to make sure. It actually WAS enforceable and all the requisite paperwork/copies of it were in order


    Also, in answer to your question about whether the offers you've made are realistic there's no hard and fast rule. Some creditors are very happy to settle for such amounts, others are not willing even at double that amount. You'll just have to wait and see what they come back with. They'll possible counter with a much higher offer and then it's up to you to try to negotiate down to something acceptable to both of you. It also depends on how old the debts are, the amount you are repaying at the moment and whether the creditor feels they'll ever get their money back. If you've dropped to token payments for while and have no prospect of being able to increase them for the foreseeable future they may be amenable to a settlement offer. It's usually the case though that debts that have been sold on are much more likely to be settled for less than those still with the original creditors


    Please let us know how you get on. Good Luck
    When it's raining, look for rainbows.
    When it's dark, look for stars.
    • Rjhsteel
    • By Rjhsteel 5th Jun 19, 1:30 PM
    • 131 Posts
    • 11 Thanks
    Rjhsteel
    I assume you mean those without credit agreements are unenforceable debts. Is this based on CCA requests? Are you totally sure they are unenforceable or have the creditors just been a long time finding anything? I know they should comply in a certain timeframe but a lot don't! One of my DCAs wrote to me once a month for nearly a year telling me that the original creditor was trying to locate the necessary paperwork. I assumed it would end up being UE as it seemed unlikely they'd find anything. Sadly, they eventually sent a lot of stuff back and I had it checked by the All About Debt website experts to make sure. It actually WAS enforceable and all the requisite paperwork/copies of it were in order


    Also, in answer to your question about whether the offers you've made are realistic there's no hard and fast rule. Some creditors are very happy to settle for such amounts, others are not willing even at double that amount. You'll just have to wait and see what they come back with. They'll possible counter with a much higher offer and then it's up to you to try to negotiate down to something acceptable to both of you. It also depends on how old the debts are, the amount you are repaying at the moment and whether the creditor feels they'll ever get their money back. If you've dropped to token payments for while and have no prospect of being able to increase them for the foreseeable future they may be amenable to a settlement offer. It's usually the case though that debts that have been sold on are much more likely to be settled for less than those still with the original creditors


    Please let us know how you get on. Good Luck
    Originally posted by Noella
    Thanks.

    Yes, i sent off CCA's and they couldn't find them.
    And also these debts are currently under PayPlan so basically just paying minimum amounts.
    • fatbelly
    • By fatbelly 5th Jun 19, 4:30 PM
    • 14,207 Posts
    • 11,229 Thanks
    fatbelly
    Sent off letters today offering 30% to the debts with credit agreements and 20% to the 3 without...

    Realistic?
    Originally posted by Rjhsteel
    Yes

    Perhaps a bit generous to the unenforceable ones
    • kjh3222
    • By kjh3222 5th Jun 19, 5:43 PM
    • 4 Posts
    • 0 Thanks
    kjh3222
    Hi All,

    Just an overview of where I am in my journey. I have been on a DMP for approx. 9 years with 15 accounts & a starting debt of just over £70k. After lots of reading on here I realise I have been mistaken to be paying for my DMP. However at the beginning it took away a lot of the stress, letters etc.
    Over the years I settled 3 accounts via F&F with a 70% saving on one which was very welcome.

    I have been paying £400 per month & the current totals are at £26k.

    I was made redundant last year & had been doing my best to keep up with the plan. During a recent review my DMP provider ended my plan due to affordability as I am not currently working. I am not too concerned by this after reading all the great info & support on here. I have been living off redundancy money received & support from family. They now wish to help me clear the remaining debt so I can move forwards.

    Of the 12 accounts two were bank accounts. I have sent CCA requests for the other 10 & have had my first responses today. All 3 received have said they are unable to provide the CCA so the agreements are currently unenforceable. However they are in contact with the original lenders.


    I guess I need to wait & see what the original lenders come up with..........


    I have offered one of the current accounts 27% as a F&F, they have written back & said they will accept 80%.


    Most of my accounts are with Idem, as well as 2 with PRA & 1 each with Wescot, Moorcroft & Drydens Fairfax.


    Sorry for the long intro.............
    • Keezing
    • By Keezing 8th Jun 19, 7:33 AM
    • 287 Posts
    • 257 Thanks
    Keezing
    I’m working on settling some debts at the moment and here’s what I’ve achieved so far:

    American Express (Managed by NCO but not sold) accepted a 30% settlement on 9k

    Arrow (Managed by Capquest) accepted a 30% settlement on 9k

    Barclays (Managed by Westcot but not sold) accepted 30% on 22k

    Zopa (not Managed or sold to anyone) accepted 50% on 12k

    Intrum and Creation are not playing ball, reusing to accept less than 90%.


    Proves that it’s possible to achieve good settlement figures with some original lenders that haven’t yet sold the debt.
    • Noella
    • By Noella 8th Jun 19, 8:34 AM
    • 125 Posts
    • 1,070 Thanks
    Noella
    Iím working on settling some debts at the moment and hereís what Iíve achieved so far:

    American Express (Managed by NCO but not sold) accepted a 30% settlement on 9k

    Arrow (Managed by Capquest) accepted a 30% settlement on 9k

    Barclays (Managed by Westcot but not sold) accepted 30% on 22k

    Zopa (not Managed or sold to anyone) accepted 50% on 12k

    Intrum and Creation are not playing ball, reusing to accept less than 90%.


    Proves that itís possible to achieve good settlement figures with some original lenders that havenít yet sold the debt.
    Originally posted by Keezing
    Well done, some excellent results there


    I see though that the debt balances were pretty high (£22k in one case) and if the creditor felt there was little likelihood of ever recouping a big share of this they were probably thinking they'd better grab now whatever they could definitely get. Just my opinion. I think once the outstanding individual balances are less than, say £4k the creditors are less amenable to brilliant settlements..


    I found Wescot to be really good too. They managed 2 of my debts not owned them, otherwise all mine were sold on. Wescot settled @ 35% payable on them, very much smaller balances than yours though and I was very pleased. They were a pleasure to deal with throughout. Unlike LINK who were the absolute opposite


    Good luck with the 2 outstanding debts. Give them time and they'll no doubt get back to you with improved offers.
    When it's raining, look for rainbows.
    When it's dark, look for stars.
    • babyj_16
    • By babyj_16 8th Jun 19, 4:35 PM
    • 2 Posts
    • 0 Thanks
    babyj_16
    This gives me hope. Iíve got about £8000 unsecured debts but only 3 that actually appear on my credit file. Iíve been making token payments of £1 for at least 3 years. I sent CCA requests out in March and of the 6 accounts Lowell hold theyíve only been able to send documents for 3. Two are on my credit file and one Iíve had the paperwork for and the other I havenít. Iíve just sent the F&F Offers for those two at 30% and made it clear my financial situation is not going to change in the foreseeable future. Really hoping they accept and at least my credit file will be clear.
    • Rjhsteel
    • By Rjhsteel 12th Jun 19, 3:09 PM
    • 131 Posts
    • 11 Thanks
    Rjhsteel
    Well PRA Group got back to me and offered £2470.00 to settle the debt that was originally £3087. So not a great start. (I offered £933 which was 30%)
    They said that was the lowest they would go to.

    What should i do next? A counter offer?
    • fatbelly
    • By fatbelly 12th Jun 19, 4:30 PM
    • 14,207 Posts
    • 11,229 Thanks
    fatbelly
    Well PRA Group got back to me and offered £2470.00 to settle the debt that was originally £3087. So not a great start. (I offered £933 which was 30%)
    They said that was the lowest they would go to.

    What should i do next? A counter offer?
    Originally posted by Rjhsteel
    That's still quite a gap, but you could try again slightly higher.

    Other than that, give it 6 months and make the 30% offer again.
    • Rjhsteel
    • By Rjhsteel 13th Jun 19, 11:31 AM
    • 131 Posts
    • 11 Thanks
    Rjhsteel
    That's still quite a gap, but you could try again slightly higher.

    Other than that, give it 6 months and make the 30% offer again.
    Originally posted by fatbelly
    And this was from one of the debts that didn't have a copy of the credit agreement!!

    If they don't have a copy, where do i stand?
    • Willing2Learn
    • By Willing2Learn 13th Jun 19, 11:37 AM
    • 4,398 Posts
    • 3,946 Thanks
    Willing2Learn
    And this was from one of the debts that didn't have a copy of the credit agreement!!

    If they don't have a copy, where do i stand?
    Originally posted by Rjhsteel
    If they are unable to provide you with a true copy of your credit agreement,
    then the account becomes unenforceable, although it would still be an outstanding debt.

    If it were me, I would withhold payment and instead put the money into a savings account that you can use for F&F settlements. After six months you will have a little more money in the pot and can make a new low offer.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Rjhsteel
    • By Rjhsteel 13th Jun 19, 11:58 AM
    • 131 Posts
    • 11 Thanks
    Rjhsteel
    If they are unable to provide you with a true copy of your credit agreement,
    then the account becomes unenforceable, although it would still be an outstanding debt.

    If it were me, I would withhold payment and instead put the money into a savings account that you can use for F&F settlements. After six months you will have a little more money in the pot and can make a new low offer.
    Originally posted by Willing2Learn
    Its part of a Payplan repayment so not sure how to do this?
    • Willing2Learn
    • By Willing2Learn 13th Jun 19, 4:16 PM
    • 4,398 Posts
    • 3,946 Thanks
    Willing2Learn
    Its part of a Payplan repayment so not sure how to do this?
    Originally posted by Rjhsteel
    Advise Payplan that you submitted CCA request to your creditors and that you no longer want to make payments to any unenforceable accounts??

    If Payplan have not got that level of flexibility, then you either have to continue with the payment plan, or consider going self-managed for all the remaining accounts...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Littlebigmoose
    • By Littlebigmoose 19th Jun 19, 8:10 AM
    • 84 Posts
    • 245 Thanks
    Littlebigmoose
    Received a letter out of the blue from Lowell offering 90% discount on a £1000 debt. Had been making token payments for a year. Hopefully this may be useful to someone negotiating with them.
    GOAL DFD 01/12/2020
    1% Challenge 2019- #27...
    3-6 Month Emergency Fund- #7
    1 Debt vs 100 Days
    Payment a Day

    £1000 Emergency Fund challenge #270
    • fatbelly
    • By fatbelly 19th Jun 19, 4:57 PM
    • 14,207 Posts
    • 11,229 Thanks
    fatbelly
    Received a letter out of the blue from Lowell offering 90% discount on a £1000 debt. Had been making token payments for a year. Hopefully this may be useful to someone negotiating with them.
    Originally posted by Littlebigmoose
    I'm afraid it's only useful to you.

    Before you started making the token payments, had there been a 6-year gap in payments?

    If no, is there a chance that there is no signed agreement on this?

    It's unusual to get a 10% offer out of the blue unless there is something defective about the debt.

    Did you have a long-term plan for dealing with this?
    • Littlebigmoose
    • By Littlebigmoose 22nd Jun 19, 5:16 PM
    • 84 Posts
    • 245 Thanks
    Littlebigmoose
    No 6 year gap just a debt from a network provider
    GOAL DFD 01/12/2020
    1% Challenge 2019- #27...
    3-6 Month Emergency Fund- #7
    1 Debt vs 100 Days
    Payment a Day

    £1000 Emergency Fund challenge #270
    • PMarie1981
    • By PMarie1981 29th Jun 19, 7:44 AM
    • 10 Posts
    • 0 Thanks
    PMarie1981
    Hi, I'm currently with stepchange and have been for a couple of years now, I was making payments a month to them of £130 a month but struggled so dropped my payments to £69, my debt is just over £10k but have other arrears including rent etc. My sister and dad has offered to pay the £10k debt! But I would like to try offer reduced settlement so then whatever is left over I can pay my priority debts too. These are my debts, any advice on what I could offer these? Also I wont get the money till 6 weeks time, should I make the offers now to get the ball rolling?
    Shop direct £2468
    westcot credit (halifax) £1980 DEFAULT
    Barcleycard £1751 DEFAULT
    PRA group MBNA £1130 DEFAULT
    Moorcroft argos £791
    Intrum tesco £640 DEFAULT
    westcot credit (halifax overdraft) £515 DEFAULT
    Paypal £438
    three £289
    Diamond insurance £140
    natwest £203
    council tax arrears £550
    studio £150
    rent arrears £400
    • fatbelly
    • By fatbelly 29th Jun 19, 8:15 AM
    • 14,207 Posts
    • 11,229 Thanks
    fatbelly
    Hi, I'm currently with stepchange and have been for a couple of years now, I was making payments a month to them of £130 a month but struggled so dropped my payments to £69, my debt is just over £10k but have other arrears including rent etc. My sister and dad has offered to pay the £10k debt! But I would like to try offer reduced settlement so then whatever is left over I can pay my priority debts too. These are my debts, any advice on what I could offer these? Also I wont get the money till 6 weeks time, should I make the offers now to get the ball rolling?
    Shop direct £2468
    westcot credit (halifax) £1980 DEFAULT
    Barcleycard £1751 DEFAULT
    PRA group MBNA £1130 DEFAULT
    Moorcroft argos £791
    Intrum tesco £640 DEFAULT
    westcot credit (halifax overdraft) £515 DEFAULT
    Paypal £438
    three £289
    Diamond insurance £140
    natwest £203
    council tax arrears £550
    studio £150
    rent arrears £400
    Originally posted by PMarie1981
    With £69 surplus you are close to the £50 limit for a DRO.

    Have you considered looking into one? Your sister and Dad could help you with the £90 fee and save the other £9910 to do something nicer with. You can still have 1k in 'assets' and a car worth up to 1k

    Regardless of what you do, I would not advise them to just dump 10k into your account. If you went down the F&F route it is better to have the payment coming from a third party.

    When you mention your 'priority debts' are you referring to your council tax and rent arrears that you listed? Or do you have others? Really, priority debts should be dealt with ahead of non-priorities, as the terms imply. And you won't get settlement discount on these.
    • PMarie1981
    • By PMarie1981 29th Jun 19, 9:10 AM
    • 10 Posts
    • 0 Thanks
    PMarie1981
    I will be paying of my priority debts off first. I don't think I would go down the DRO route as My plan is to hopefully buy my own place after the debts have been paid and the defaults have dropped which I know takes 6 years but gives me time to save up for a deposit. Can I just ask why they shouldn't pay the 10k into my account?
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