Thread: Weird offer from HFC Bank - Advice please

Hi,

I have started action against HFC Bank for the recovery of £400.00. So far I have only sent the lba.
Yesterday I had a letter from 'Debt Litigation and Recovery Services' which said the following:-

without prejudice

HFC Bank Ltd would like to draw your attention to an opportunity for you to settle the outstanding debt on the above account upon repayment of a considerably reduced amount.

This sum could represent as little as 60% of the present balance. If you can pay the reduced amount (either in a lump sum or by monthly installements) contact HFC Bank Ltd now on 0870 333 7377 between 8.00am and 9.00pm, Mon to Fri, Sat 8.00am to 2,00pm.

I would advise you that the records relating to the above account held with the Credit Reference Agencies will state your account has been closed and no further monies are being sought by HFC Bank Ltd, it is our intention to file a notification of reduced settlement being accepted. This notification may be taken into consideration by other lenders if you appply for credit in the future. Credit Reference Agencies are organisations, licenced under the Consumer Credit Act 1974, which hold information about individuals, which is of relevence to lenders.
To avoid such a notification being filed you must pay the full amount due.

To take advantage of this opportunity, simply telephone to confirm your proposals within 7 days of the date of this letter. After this period that offer will lapse.

DO NOT IGNORE THIS LETTER - failure to respond will result in one or both of the following courses of action:-
1. HFC Bank Ltd will instruct professional collection agents to call upon you personally to collect monies due and/or
2 Court proceedings will be taken against you to recover the full outstanding balance. This will add legal costs and further interest to the debt.

Please take this final opportunity to resolve matters. If you make satisfactory arrangements to pay regularly you will save considerable costs to yourself.

Yours sincerely

Karen L Walsh
Operations Manager
For Debt Litigation and Recovery Services.



A very strange offer indeed!
Any comments anyone

Baz

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Hi Baz

Couple of questions

How much is the debt ?
How much of the debt is charges ? £400 ?

Hi Karnevil,

The total debt is £3768.00. Of this there is £325.00 in penalty fees.

I distrust banks so much that this feels like a trap of some sort.
What do you think?

I honestly dont know - sounds quite good though.

Could the debt be one that is statute barred ? ie. you haven't had contact with them for a long time ?

If not I can't see how it would be a trick ? If you can pay £1800 off the debt or whatever it might save you a lot of hassle. Basically they are willing to offer a reduced settlement now because if they sell it to a debt collector they'd only get 20/30% of the debt - who would then chase you for as much as possible......

Originally Posted by karnevil

I honestly dont know - sounds quite good though.

Could the debt be one that is statute barred ? ie. you haven't had contact with them for a long time ?

If not I can't see how it would be a trick ? If you can pay £1800 off the debt or whatever it might save you a lot of hassle. Basically they are willing to offer a reduced settlement now because if they sell it to a debt collector they'd only get 20/30% of the debt - who would then chase you for as much as possible......

Very odd tho don't you think?
Im wondering whether they don't have the original agreement anymore cos I had a letter recently where they stated that the Agreement start date was 00/00/00!
Its certainly not statute barred cos I've only had the account for about 3 years and I have run the account properly altho late with payments a few times!

I think I'll follow this through and see what happens.

Thanks for your comments Karnevil,

Baz

oh - and dont forget the effect on your credit file - wouldnt bother me as mine is shot to bits anyway - but if yours is otherwise clear it could be a pain for the next 6 years.

Originally Posted by karnevil

oh - and dont forget the effect on your credit file - wouldnt bother me as mine is shot to bits anyway - but if yours is otherwise clear it could be a pain for the next 6 years.

Well no problem there!
Mines shot to pieces too

i got one from them at the end of last year as well
without prejudice
Account Number:***********
Current Balance £

Thank you for your considerable effort to maitain payments to your account. At Household Bank we apprediate customers who do their best to honour their commitments.

Would you like to take the oportuntiy of bring your account up to date, whilst at the same time possibly reducing your existing commitments to us, by rewriting your existing account at 0%A.P.R?

gave them a ring they knocked £2000 of what i owed them now paying it back at £40 a month 0%A.P.R

Hi pford,

If its not too nosey can I ask you how much you owed in the first place?

Baz

not far of £6500 mark

Wow, thats really good then if its now at 0% interest!

I'll definitely call them now. I distrust banks so much that I was concerned that there was some kind of catch but from what you say it would appear genuine.

Thanks for your help with this pford

Baz

OK thanks for the warning. I will try and ensure that they don't do the same to me.

Good luck with your efforts in getting that removed.

Originally Posted by Barry031261

Hi,

I have started action against HFC Bank for the recovery of £400.00. So far I have only sent the lba.
Yesterday I had a letter from 'Debt Litigation and Recovery Services' which said the following:-

without prejudice

HFC Bank Ltd would like to draw your attention to an opportunity for you to settle the outstanding debt on the above account upon repayment of a considerably reduced amount.

This sum could represent as little as 60% of the present balance. If you can pay the reduced amount (either in a lump sum or by monthly installements) contact HFC Bank Ltd now on 0870 333 7377 between 8.00am and 9.00pm, Mon to Fri, Sat 8.00am to 2,00pm.

I would advise you that the records relating to the above account held with the Credit Reference Agencies will state your account has been closed and no further monies are being sought by HFC Bank Ltd, it is our intention to file a notification of reduced settlement being accepted. This notification may be taken into consideration by other lenders if you appply for credit in the future. Credit Reference Agencies are organisations, licenced under the Consumer Credit Act 1974, which hold information about individuals, which is of relevence to lenders.
To avoid such a notification being filed you must pay the full amount due.

To take advantage of this opportunity, simply telephone to confirm your proposals within 7 days of the date of this letter. After this period that offer will lapse.

DO NOT IGNORE THIS LETTER - failure to respond will result in one or both of the following courses of action:-
1. HFC Bank Ltd will instruct professional collection agents to call upon you personally to collect monies due and/or
2 Court proceedings will be taken against you to recover the full outstanding balance. This will add legal costs and further interest to the debt.

Please take this final opportunity to resolve matters. If you make satisfactory arrangements to pay regularly you will save considerable costs to yourself.

Yours sincerely

Karen L Walsh
Operations Manager
For Debt Litigation and Recovery Services.



A very strange offer indeed!
Any comments anyone

Baz

Hi Barry,

How did things turn out with this?

Any more news?

Jeff.