How much to offer?

[Andrew66]

I have two outstanding debts, £1300 to A+L and £650 to Homebase. I've been on an IVA for 2 1/2 years but want to clear them using a loan to repair my credit rating. Is the best policy to write with an offer? I thought £350 to A+L and £250 to Homebase are reasonable offers. Anyone got a view on this?

[Goldlady]

Hi Andrew66 - I guess it would depend on how much they stand to get out of the IVA. It is worth a try although I am not sure if the offers should be proportional to the debts. I would be interested to hear how you get on as I am hoping to help some friends of mine get out of an IVA.

[diskmandave]

Welcome Andrew, it might be an idea to actually have a word with your IVA practitioner before making an expensive mistake. An IVA is a binding contract after all.

 

Best wishes, Dave.

[Andrew66]

I don't deal with the IVA company any more, as I was paying £26 per month but only £8 was going to creditors. The Homebase debt I am paying £15 per month and A+L £1 per month.

[Goldlady]

Can I ask how you got out of the IVA?

[Andrew66]

I started dealing directly with the creditors. As I won some bank charges back I was able to get settlements with them. MBNA offered me a settlement of £704 on a debt of£1800, so I couldn't pass that up.Homebase took payments of £1 a month but then threatened to sell it to a debt collector so I offered £15 per month.

[Goldlady]

Thanks Andrew. Think the one I am trying to sort is a little more complex, however it is worth knowing that it can be done.

[tomterm8]

Are you sure that you don't have a DMP? rather than a IVA? Thing is, F&FS wouldn't be possible in an IVA but would be possible on a DMP (where you pay a proportion of your income)

[Goldlady]

I do know someone (from CAG) who managed to get out of an IVA by remortgaging and contacting the creditors directly with a FFS offer which was more beneficial to them.

 

According to my friends' IVA agreement which I am trying to help with, the creditors can vote to have the arrangement terminated. I am trying to find out as much as I can from others who have successfully escaped from an IVA.

[tomterm8]

That's interesting. the only problem is the IP fees would still be liable, and it might actually be cheaper just to go on with the IVA.

[vibrett]

Does anyone know if I can offer a full and final settlement amount on a debt which has a ccj? thanks

[tomterm8]

yes, you can, and if the CCJ installments are low enough they might accept it. make sure you say the cash is raised by a relative.

[vibrett]

that wouldn't be a fib lol thanks for the advice

[vibrett]

if I have a debt of £1200 whaqt would be a reasonable offer - I don't want to borrow more from my Dad than I have to

[Andrew66]

Surely paying a lump sum would be more beneficial than a pound a month!

[tomterm8]

start at 10% and negotiate from there. Do it over the phone initially. Say that you can't afford it if it goes over 50% and hang up. Wait until the last thursday or friday of the month.

 

Make sure you get written confirmation that it is a full & final settlement AND keep the records forever (literally, since CCJs are payable forever).

[vibrett]

will do - thanks again Tom

[vibrett]

I've spoken to Howard Cohen and CL Finance - both are adamant that they will only accept 85% and not a penny less - will calling at the end of the month really make that much difference? They are also quotingthe debts as much greater than the amounts that Payplan have listed - they say in the past they have only given estimated amounts and to go forward I have to write and ask for confirmed amounts via payplan - can they do that?

[tomterm8]

it's a negotiation, vibrett, if they say 85% you say... sorry, no way blah blah will pay that much. What about 15%. Etc. If they try to change the amount you owe suddenly, I would suggest saying you will S.A.R. the original creditor in that case, and it will go to court.

 

Don't take no for an answer... be pushy. ask them why they will only accept 85%. Take control, and stay on the phone for as many hours as it takes;)

 

when you've almost come to an agreement, say sorry... i really can't afford that, and put the phone down. Wait and see if they ring back.

 

 

 

And yeah, it makes a BIG difference when you do this... they will be much more desperate to accept offers when coming up to their monthly target, like any sales person.

[vibrett]

ok thanks - i hate having to play their games - I originally had debts of £45k and I've worked bloody hard at paying it all off but this last 3k has been awful - If I had it I'd pay the whole lot to be free of it but I only have upto £1,500 and as I say its really frustrating

[Goldlady]

You could put a deadline on the offer - my relation has said that if you don't accept a reasonable offer by xx date it is withdrawn.... That's the sort of tactics they use, so why not turn the tables?

[vibrett]

Thats good advice - i'll give it a try - many thanks

[tomterm8]

Don't forget that simply being patient, and saying you can't afford £XXX and waiting for them to negotiate with you will help you get the deal you want. there really is no rush, as such.

[vibrett]

Does anyone have experience specifically with CL Finance? They are now demanding 90% to settle and are reviewing my payments so I've got to complete a new budget form. They are adamant they never take less than 85% as a full and final settlement figure. I really want to be debt free - its so frustrating!

[firstwithit]

Look at the thread Look who's for sale, now!

 

Its about 1st Credit, they average 10p in the £ for purchasing debt!