Thread: Paying off my creditors in full

I am currently in a dmp with CCCS the problem I have is my mum is prepared to borrow me £7k which can clear in full four of my creditors one of which is MBNA.

I will still be left with one creditor MBNA for the £7,500 and they are currently prepared to let make reduced payments for one year - April 2010.

My dilemma is if I pay off the four creditors will MBNA withdraw their goodwill and ask me to resume full payments for the one remaining debt. Or will they accept the total amount of my dmp payment.

I have not spoken with them in case I make the matter worse

Originally Posted by 38candy

I am currently in a dmp with CCCS the problem I have is my mum is prepared to borrow me £7k which can clear in full four of my creditors one of which is MBNA.

I will still be left with one creditor MBNA for the £7,500 and they are currently prepared to let make reduced payments for one year - April 2010.

My dilemma is if I pay off the four creditors will MBNA withdraw their goodwill and ask me to resume full payments for the one remaining debt. Or will they accept the total amount of my dmp payment.

I have not spoken with them in case I make the matter worse

What you should do is inform the CCCS that your mum is prepared to lend you £7000 to pay off all your creditors. They will contact the creditors and make the offers. You might be surprised how little they will accept. As little as 30% might clear it.

Hi

I used the template letters which CCCS have created on their website and sent them to each of my creditors for a final and full offer.

I received a response within a week two stated they note my letter and extended the repayment time by 6 months and MBNA where my largest debt totally to £14k stated they would only accept at least 80% of the debt.

So thats why I posed the question of paying off 4 (included in this is a MBNA account for £5k) and leave the other MBNA account which is just over £7K

Ok Diamond girl

I will contact CCCS and see what they say

No offers for the f&F which was a surprise - just my letter is noted and will review account in 6 months time. One account suggested calling them. which I am not going to do.

The offer I originally made on each account was a little over 50% so you can imagine I felt very disheartened by their response.

Do you think it could be because I have been on reduced payments from December 08 - so it may be a little early to start making offers.

Originally Posted by 38candy

No offers for the f&F which was a surprise - just my letter is noted and will review account in 6 months time. One account suggested calling them. which I am not going to do.

The offer I originally made on each account was a little over 50% so you can imagine I felt very disheartened by their response.

Do you think it could be because I have been on reduced payments from December 08 - so it may be a little early to start making offers.

If you went down the route of IVA then the average payment is about 30 to 40% offering.
Might be worth explaining to them that you are considering an IVA but as a last resort you have an opportunity for a family member to pay off the debts.
Explain that the alternative is many years of making payments in your current circumstances. Im sure you will find suitable letters on here that you can adapt. Remember when they sell these debts they go at a fraction of the price. The CCCS will still expect you to keep your payment at the same level in order to pay the remaining debt quicker.

Originally Posted by dx100uk

you have ofcourse done the already obvious and CCA'ed all these debts?
MBNA are notorious for not havin the correct paperwork.
if it did turnout any of these were unenforceable, that would put you in a very strong position to make a very low F&F that they must accept or get nowt

just a thought

dx

Very good idea. Many of the companies fail to keep or have legal documentation to enable them to proceed in court. Get them all cca'd and see what you get back before making any further offers. Also just be aware that although cccs are a charity they get paid by the financial institutions and they will attempt to continue to get you to pay an affordable payment each month. Get the documentation back and post on here for people to advise further.

Wow! Thank you all...


Hi All What is a CCA?- why would I request it?

Well the 2 MBNA credit cards have been charging me late payments of £12 which of course has increased my balance from Jan 09. Even though I wrote to them in December last year and advised I was on a dmp with CCCS.

Originally Posted by 38candy

Wow! Thank you all...


Hi All What is a CCA?- why would I request it?

Well the 2 MBNA credit cards have been charging me late payments of £12 which of course has increased my balance from Jan 09. Even though I wrote to them in December last year and advised I was on a dmp with CCCS.

Send each of them a copy of the letter below. adapt it to suit each account and do not sign it, print your name. enclose a £1 uncrossed postal order in each and send by recorded delivery.
When you get some responses post them on here with personal details taken out and await further advice.
If you hear nothing after 12 working days let the forum know.


Your Name
address

Dear Sir/Madam

Account no XXXXXXXXXXXXXXX

This letter is a formal request pursuant to s.77(1) of the Consumer Credit Act 1974. I require you to provide me with a true copy of the credit agreement relating to the above account, together with any other documentation the Act requires you to provide. I expect you to comply fully and properly with this request, within the statutory time limit. You are reminded that should you fail to comply with my request, the provisions of s.77(6) will apply

Your attention is drawn to ss.5(2), 3(b),6 and 7 of the Consumer Protection From Unfair Trading Regulations 2008 (CPUTR)

I enclose a postal order in the sum of £1.00, which is the statutory fee. Note that these funds are not to be used for any other purpose.
If you are unable to comply fully and properly with this request, you should confirm this in writing at the earliest opportunity, and certainly within the statutory time limit for compliance, and return the fee.

I look forward to hearing from you

Yours faithfully