Advice needed - I had been paying an old debt (around £2000) which originated from an overdraft at Nationwide through Fredricksons at £30 per month, and it got down to around £1255. Then for some unknown reason Nationwide moved the debt to ARC (Europe).

Just had my first contact with them on the phone, and asked them if they would be interested in a low settlement offer instead of starting up the low payments again (I have the money as in good shape now)

I suggested 10% which they laughed at, but they came back with a 50% settlement offer which they are going to put in writing. And would be marked on credit file as 'partially settled'.

Is it worth me doing this?

I am trying to rebuild my credit file gradually in the hope that one day in the future we might be able to apply for a mortgage. I don't think this account has much of an impact on it as it falls under the closed accounts section, but for 50% I could make it go away and not be bothered by this new agency again.

What do you think? Any advice much appreciated...

Applying for a Mortgage with a default is a bad idea. Clearing this with Partially settled wont really help.

ARC dont do court either... Frederick returned it and they got there share of the debt. Even though this account is still with Nationwide...

Its up to you... But dont burn money as you wont actually be getting yourself anywhere by paying this off at any rate.

what date is the default

who are arc's client on their letters?

you should be talking to a DCA

they ARE NOT BAILIFFS.

dx

50% discount!! Who're they trying to kid?

I'd laugh at them, and stop being cash cowed.

How much of this overdraft are the banks reclaimable fees and charges?

Have you ever reclaimed them?

It came from a Nationwide current account and the default where they eventually passed it on to Fredricksons was only about 3 years ago. It was the only one I was paying anything on as they were just so relentless with their phone calls I agreed to do the £30 per month.

If it doesn't help me at all to clear it now, are you suggesting that I make another monthly arrangement? Or just not pay it at all, ever?

I am not likely to be applying for a mortgage any time soon, but thats interesting that there will be no real benefit from having it marked as partially settled.

Not sure what to do now tbh - If ARC are not particularly aggressive with their methods, then I guess I could just leave it alone. It's just its the only account/debt I have left that is not outside the 6 years statute barred situation, which is why I was thinking of clearing it...

what date is the default

who are arc's client on their letters?

Nationwide is the client. Havent received a letter from ARC yet as this has only just been transferred - just the letter from Nationwide saying it had been transferred to them and a text and call from ARC. Will see what the offer letter says when it arrives.

How do you tell the exact default date? The overdraft sat there for a good long time before they transferred it to Fredricksons. But that was only a couple of years ago. So I would say 3 years since the original overdraft went unpaid and I stopped using that account.

None of it came from reclaimable fees and charges as far as I recall.

The debt was formed quickly from me juggling to pay other things, and once I told them I couldn't pay it they froze it and stopped the interest quite quickly.

How much discount should I get?

I suggested 90% as that is what most of the statute barred ones I have have offered, but since this isn't close to being SB since I have made payments as recently as 4 or 5 months ago,

I assumed I wouldnt get it, and they came back with 50%.

50% discount!! Who're they trying to kid?

 

I'd laugh at them, and stop being cash cowed.

 

How much of this overdraft are the banks reclaimable fees and charges?

Have you ever reclaimed them?

should be on your credit file...

I hope you are not confusing defaulted date with SB date in your earlier comment regarding what did show and what doesn't now..

On the credit file I see at clearscore, it never showed when it was at Fredrickons, and still shows as Nationwide, with the last payment being Sep 2014

should be on your credit file...

 

 

I hope you are not confusing defaulted date with SB date in your earlier comment regarding what did show and what doesn't now..

It will show as NW the debt hasnt been sold.

try noddle its free too

need the defaulted date

unless they've not defaulted you?

can see why a 50% discount would be offered if Nationwide have not screwed you somewhere

something fishy is going on

So what should I do? Pay/Not pay?

Ok will try Noddle - Surely the 50% discount makes sense for them if they get paid now rather than go back to an arrangement of £30 per month? Just good business no?

try noddle its free too

need the defaulted date

unless they've not defaulted you?

 

 

can see why a 50% discount would be offered if Nationwide have not screwed you somewhere

 

 

something fishy is going on

Dont pay a penny until you find out the facts surrounding the debt.

Thanks for the advice so far on this everyone.

While I was waiting for the offer letter to arrive I called Nationwide to find out the status of the account, and as some of you suggested, it actually is still owned by them and they are/were just using various agencies to collect it.

it never was in default, and is actually still a valid account on their system at the bank, albeit not in use.

with that information confirmed, am I right in saying that they could at any time go after the debt more aggressively, and that the clock has not yet started in terms of the 6 year SB scenario?

surely this is a good deal to settle for 50% of the balance,

since if they pursued it legally (albeit a long shot I assume)

I would have to pay the whole amount which I can afford to do now.

I have attached the offer letter below for you to see (with info removed)

- Would welcome all advice on what I should do now. Thanks in advance:

Ignore them completely. We;ve told you that multiple times. You need to get the full details of the debt. Not run scared into paying a settlement a DCA which is what youre currently doing.

you should be talking to the creditor. NEVER to a DCA.

And if you do decide to pay anything...pay NW not the ambulance chaser and request its completely removed from your CRAs not marked partially settled....and that its in full and final settlement.

yes you MUST insist it is REMOVED from your credit file.

I bet they wont do that!

I've removed your letter as you left the account number in the text.

that's why we say use pdf

Ah okay I thought I had blacked out all the numbers to make it unreadable.

I guess where I am confused is that you are all saying to ask for the full details of the debt

- why do I need this?

I know exactly what it is,

how it was formed,

and that I do actually owe the money.

There is no dispute at all.

I am not running scared into anything,

just since I figure I will eventually repay it,

why not do it now at half price?

Sometimes I get the impression from this forum that no-one wants to pay anything that they owe, under any circumstances.

I understand not paying the crazy fees/charges/interest that some of the cowboys charge, but surely if you borrowed the money legally and everything is correct, don't you feel obligated to pay it back? Maybe I am missing something?

I guess I can ask if they will remove from credit file, but really why should they?

I owe the money, and will be paying it off partially, so the fair thing is to say so on the file - no?

And as for talking to the creditor

- I can pretty much guarantee that if I walk into a branch and ask about it, there will be no negotiation whatsoever, they will say I owe the full amount, and paying the full amount is the only way it will go away.

They are a bank, not a dodgy pay day loan lender, and the money was borrowed.

So in this case dealing with the agent seems the best option in my opinion.

had to have a look in here.

smell the roses.

it was 2k and you've been paying and it is now 1.2k. 800£ paid to one dca.

now it has gone to another dca for their share. they want around 50% of 1.2k...= 600.

so, 1.4k of 2k. hmmm

and, its been defaulted?

cash cowed.

here's one eg re an o/d default of around 2k. nothing paid after they defaulted (no point being eager to pay once defaulted), no court. and now they are offering 70 % off. ok, the circs maybe slightly different, but not that much i bet.

The big difference is that as I said above, this is not defaulted.

Nationwide just passed it to one DCA then another to collect on their behalf.

If they took a look at my credit report and see that I now am getting my finances together and have a decent balance in my current account etc,

whats to stop them taking legal action, at which point I would have to pay the whole amount.

The big difference is that as I said above, this is not defaulted

I

t came from a Nationwide current account and the default...

no mind made up yet

a default (#5), or now no default (hmm). you decide.

i know you later say it it hasnt been defaulted according to them. but, has it. check the records

the dca is acting on the instructions of the creditor Nationwide

they have NO authority to offer a 50% discount with their say so

no-one said go into the branch write to nationwide with your proposal.

but having been doing this here since 2006 and with almost 100'000 posts

I can quite safely tell you there is more to be gotten back than 50%

something very big smells here

you need to sar nationwide

and find it.

ok, if my posts are n/a then. ignore.