MBNA recently transferred my credit card debt to Idem Servicing without notice, (yes I do understand this can be done, & I do understand that under the 1926 act the full notional balance is transferred regardless of what Idem Servicing paid for it).
Not wishing to be in the clutches of a DCA I decided to make a settlement offer of some 55% of the notional balance and about twice what Idem paid for it, working on the basis of the max they would have paid 30% for a debt situation that is now nearly six years old).
Despite several tries at written dialogue all I have received in return is a standard letter stating no offer will be accepted until I complete a full financal statement, and boy is this full, it ask what I would consider to be the normal questions, plus items like what do you spend on petfood, sweets, footware etc.! They also want to know why the offer is being made, amount being offered, (already stated), and the source of the offer funds. Also the reference now used is not the cc number but their own, which they describe as a 'loan account'.
In the past, I have made offers to creditors of full and final settlements and after negotiation have had them agreed at around this rate (50 - 60%) of the orginal debt amount, without resorting to disclosing so much (any) information. I could understand completing this form if negotiating a monthly payment figure but this is not the case. I should also add the amount I have been paying monthly amounts to more than I would be paying in terms of a minimum payment if the credit card was active.
The question I have is would you consider this to be normal practise, or are they 'fishing' to leverage up my monthly payment? Any other suggestions gratefully received as well.
As a bit of background IDEM recently accquired two tranches of cc debt from MBNA one at 55 million, the other at 11.8 million. They are part of the Paragon group who are a mortgage and loans company, although if you look at the groups balance sheet you will see the DCA arm (IDEM) contributed 27% of their last group profits, their investment partners (i.e. they have put up a proportion of the money) for debt accquisition are Carval Investors, and Arrow Global, technically this is called a 'shared upside purchase'.