Final Settlement - How much should I offer?

[Nickolarge]

My wife has nearly £45,000 of unsecured debts. For nearly two years she has only been paying £102 per month via a CCCS plan which means that each one of her 6 creditors are getting next to nothing. Most of her debts have been passed to DCA's. After Christmas we will have access to a lump sum from a relative who wants to help us to clear the debts but wants to do it for the minumum possible. I have read the threads that say the debts get sold on for as little as 15%.

 

How much should I offer as a starting percentage when I write to them?

What sort of offers have been accepted in the past?

The debts are currently with Cabot, DLC(x2), CL Finance, Capital One and Alliance & Leicester.

 

Thanks in advance

[Goldlady]

As the DCAs pay as little as 5% to purchase these debts that is where I would start. And do not give away the fact that you might be able to afford any more. Start low and negotiate.

[Nickolarge]

DLC told my wife they would not take less than 80% on the phone and then sent a letter asking for £11,088 against £13,860 that was owed.

[rory32]

How much should I offer as a starting percentage when I write to them?

 

How much they are wiling to settle for depends on a number of factors e.g. if you have been on significantly reduced payments for a long period of time. Have you checked that they have a copy of the credit agreement? If they don't they will be far more willing to take any money they can get as full and final settlement.

[renegotiation]

DLC told my wife they would not take less than 80% on the phone and then sent a letter asking for £11,088 against £13,860 that was owed.

 

I got DLC down to 20% for my dad. We didn't have 20% in the end. They lost in court anyway. A real gang of phone nasties DLC I thought and I spoken to a few. Every other sentence is a lie.

[Nickolarge]

We have enough to offer about 24% if pushed. How did you work it with your dad's debt. Start low and meet in the middle or did you just stick at 20% until they eventually came down?

[Hippy-chick]

It depends, nicklolarge.

 

As rory says - have you checked they have all the paperwork in order?

[renegotiation]

Well it was about 5k. I just said he's old and ill and that's the most we can get. Take it or leave it basically. I think they were still expecting to win in court at that stage so it wasn't a complete desperation offer. They just knew that 'even' if they won in court they would still have to extract the cash. I did also tell them it was a one time special offer lol. No joke there. Chatting to them in their own language maybe really aided the case!

[Nickolarge]

It depends, nicklolarge.

 

As rory says - have you checked they have all the paperwork in order?

 

I only found this site today when I was trying to find out how high (or low;) ) I should go with the starting offer. I planned to send the letters tomorrow but now I am wondering about these CCA's.

 

One problem is that my wife just want's them cleared away ASAP.

[Hippy-chick]

Well - that's up to you nickolarge.

 

Basically CCAs ensure that the person collecting is authorised to collect. And, although you talk about the amount of her debt - are you sure that is really what she owes, and not comprised of charges on the account? As what you could do is to ask for a statement of each account (SAR) and then see what it is fair to offer.

[renegotiation]

Yay, you could tell your wife you Completely Cleared Away the debts! In all seriousness C.A.G. doesn't condone debt avoidance, BUT ensuring that these D.C.A.'s have a legal right to collect is very, very important.

[ThisVeryMoment]

100%. That is what you owe.

[Nickolarge]

So far two creditors have accepted my 24% offer. Strangely it is the two that did not sell on the debts, A&L and Capital One.

 

DLC restated the same offer of about 80% and CL said the same on the two debts they own. Cabot just sent a letter asking her to phone them, which we have not done yet.

 

I have sent CCA letters to DLC and CL and it's now gone two weeks with no reply.

 

DLC have tried phoning both the landline and the mobile but the call drops out when you answer. I have sent them a follow up letter reminding them of the CCA time limits and informing them that their phone system is cr*p. I told them that we won't discuss anything on the phone even if they do get through

[Boro]

I would cca them all if i where you, i very much doubt that capital one will be able to produce an agreement that meets the prescribed terms, which then makes the debt unenforceable so its up to your conscience as to how much if anything you wish to offer them

[renegotiation]

So far two creditors have accepted my 24% offer. Strangely it is the two that did not sell on the debts, A&L and Capital One.

 

DLC restated the same offer of about 80% and CL said the same on the two debts they own. Cabot just sent a letter asking her to phone them, which we have not done yet.

 

I have sent CCA letters to DLC and CL and it's now gone two weeks with no reply.

 

DLC have tried phoning both the landline and the mobile but the call drops out when you answer. I have sent them a follow up letter reminding them of the CCA time limits and informing them that their phone system is cr*p. I told them that we won't discuss anything on the phone even if they do get through

 

Don't forget that any offers they accept should have the condition that the debt will be marked as fully satisfied on your credit file.

[renegotiation]

I would cca them all if i where you, i very much doubt that capital one will be able to produce an agreement that meets the prescribed terms, which then makes the debt unenforceable so its up to your conscience as to how much if anything you wish to offer them

 

After you have verified that they have the 'legal right' to collect of course.

[Boro]

Of course

[Nickolarge]

My wife has nearly £45,000 of unsecured debts. For nearly two years she has only been paying £102 per month via a CCCS plan which means that each one of her 6 creditors are getting next to nothing. Most of her debts have been passed to DCA's. After Christmas we will have access to a lump sum from a relative who wants to help us to clear the debts but wants to do it for the minimum possible. I have read the threads that say the debts get sold on for as little as 15%.

 

How much should I offer as a starting percentage when I write to them?

What sort of offers have been accepted in the past?

The debts are currently with Cabot, DLC(x2), CL Finance, Capital One and Alliance & Leicester.

 

Thanks in advance

 

Update on the situation so far.

 

We paid Capitol One and A&L 24p in the pound. We CCA'ed the others. DLC could provide the agreement but accepted 40p in the pound. I made a mistake above saying DLCx2. The other one was MCS. They passed it back to HSBC who passed it to DG solicitors. This week they accepted just under 20p in the pound. CL finance accepted 24p in the pound but never replied to the CCA. I would have resisted but my wife just wanted me to pay. Cabot could only provide the application form and I told them that the alleged debt was unenforceable. Not heard from them since August 08. We also had a BOS preference account and they provided an agreement that was not signed by either them or my wife. They were also told 'unenforceable' and we've not heard from them since August 08.