how much should I offer DCA in full and final settlement?

[Azure]

Hi all

I'm just wondering, i have a debt for approx £90 with Debt Managers/call serve. I havent paid for a while (mainly cos they are complete cowboys and harassers).

So, im wondering, would they be likely to over a F&FS or will they still go for the full amount?

Should I offer them 50% or 75% or what, im just wondering if any one else has been successful negotiating with these people.

Many thanks x

[itsamomentintime]

have you sent for a copy of your Consumer Credit Agreement?

[Azure]

no, I dont think it applies because it is for an old utility bill. does it?

[kasdizz]

What utility, Azure?

[payingonlyencouragesthem]

Originally Posted by Azure

Hi all

I'm just wondering, i have a debt for approx £90 with Debt Managers/call serve. I havent paid for a while (mainly cos they are complete cowboys and harassers).

So, im wondering, would they be likely to over a F&FS or will they still go for the full amount?

Should I offer them 50% or 75% or what, im just wondering if any one else has been successful negotiating with these people.

Many thanks x

£0

[Azure]

lol i dont think they would accept £0 hehe, kasdizz, it is from Npower, so gas and electric

[kasdizz]

Originally Posted by payingonlyencouragesthem

£0

Dear Sir/Madam,
I propose a figure of zero pounds and zero pence in full and final settlement. I trust that the above amount is acceptable to you, and enclose a cheque payable for £0.00.

Yours Faithfully etc. etc.

I had an admission the other day for £0.00. The relevant hearing was hilarious, and we both laughed (Judge was a bit peeved) when it was announced that she offered £0 and we requested £4000 in full. We came to an equitable agreement!

[kasdizz]

Originally Posted by Azure

lol i dont think they would accept £0 hehe, kasdizz, it is from Npower, so gas and electric

Ahhh, make them happy by offering a figure for F&FS plus a promise to pay your ongoing if applicable.
If you want, I can use my contacts in Npower to see what recovery action is forthcoming, and what they'd expect. By the way, I'm assuming that NPower will recall this debt first.
Do they have a Judgement?

[lookinforinfo]

It will depend on whether Call Serve have bought the debt, or are just collecting on behalf of Npower.
If they have bought it, then they would not have paid more than 20% for
the debt-and probably a fair bit less.
Though since the debt is fairly small, they may not be too keen on settling
since even at £5 a month the debt will be cleared in less
than two years. Whereas if it were thousands, it would be worthwhile to
settle for a lot less now.
Start off at 30% and see what they say. Don't go over 50%-instead offer
them what you can afford- £2-£3 a month and see if they will then settle.

[Azure]

oh Im not with NPower any more. This is from last year. Well it was originally with debt managers, they sent me threatening letters even when i was on a DMP, and then called me and said i had to pay the full figure right now or they would take me to court, I just laughed and said 'do it' because I have no money to give you and they will see that. I wasnt in a very good mood that day.

So i thought, if they are going to phone me up and threaten me then I cant be bothered no more, and havent paid them for a couple of months.

And now apparently this call serve are acting on behalf of DEBT MANAGERS LTD - NPOWER NORTHERN.

They have no judgments or defaults or anything.. Im a n00b at this btw lol

[Azure]

ok lookingforinfo, I will go for 30% I think, if they laugh at me then i will just say ok I will give you £2 a month, oh, if they have bought it would i have received something saying that? at the minute they are saying, acting on behalf of..

[kasdizz]

Lookinforinfo is right. Start at about 30% but bear in mind that if they are using doorstep collection you should add another 20% min. If you have a 300+ credit rating (Equifax etc.) and you live in a very affluent postcode think 70%, if you have a 0 rating and live in a very deprived (Census data) area think 25%, assuming it is sold debt ( bout 15%plus/minus dependant on their targets). Recently, debt sales have been more expensive to the seller. Try Experian's free trial using a concenting friend's details for a score.

If you are realy struggling to repay anything then complete a BBA income/expenditure form and offer a realistic amount.

(from 192 public :Business Directory
0131 220 6060
0131 556 5769 fax

DEBT MANAGERS (SCOTLAND) LTD/H M LOVE &
EDINBURGH
EH3 6UP
Trading Name:
Debt Managers Ltd
Number of Employees:
65
Company Executive:
Mr C Hunter(Chief Executive)
Website:
Debt Managers - managing debt collectively
Std Industry Classification (SIC)0 miscellaneous business services )



By the way, all decently trained phone-collection DCA staff will say what they said to you. Debt Managers Ltd are v well trained. Don't say "Do it" next time, instead relax and get straight to the point.
Don't give employment or mortgage data out, but make it clear that you want to settle this via postal correspondance (use a c/o address).

If they sue for £90.00 then this is a joke.

[Azure]

Thanks for your help kandizz, well i certainly dont live in an affluent area atm, so i think i will be going for 30% I think I will offer them £30, if they dont take it then i will just tell them i will give them £3 a month. Im not sure how they will take it (bearing in mind I am really rubbish remembering to pay these people).

why do i need to use a c/o address?

[kasdizz]

Set up a realistic standing order, and keep to it no matter what, unless absolutely unaviodable.

Treat it as a high rated non-priority debt ie. below rent/motrgage/council tax/tax/ccj/hcj/fines arrears and all of your ongoing bills and reasonable expenses.

If you have to take a hit on your lifestyle then better now than in future.

Always look at the bigger picture. BBA income and expenditure forms are pretty handy (CAB/Debtline/Money Advice etc. are good with everything except Bank Charges it would seem- they attract lots of good financial advisors and legal practitioners).

If you are negotiating an instalment agreement then don't be suprised if they ask for 100%. F&FS is best done in a lump sum (otherwise it isn't really final settlement). £3.00 a month may well be equitable dependant on your means.

(The targets I made above are what I would expect from DCA's, but these are so, so, so, so varriable If they had a Judgement then I'd recommend using a statement of means form, that's what the creditor would have to use at a court hearing).

C/O address (monitor every 3 days) in case they they submit a claim. It will prevent bailiff action if, heaven forbid, they see it necc...

(If I get the time then I'll post some interesting data on affluence/unemployment/credit score by postcode, can't give it all though as some of it is a bit of a trade secret (most of the useful UK stuff is Crown copyright so it's easy open/personable access, all of it is obtainable).)