Blagging money off my loans when settling

[overcharg3d]

Hi,

 

I've two loans and two current account with Barclays and Cahoot, one of each with each. I'm getting help from Dad (wooo, thanks! luv ya!) to clear them, but as he's shelling out £10k to get me out the doodoo, he wants me to try and knock them down, making a partial settlement offer.

 

Current accounts are just about on their overdraft limits, loans are both way in arrears - Cahoot sent me a default notice 2 weeks ago today and Barclays sent me one in March but I've made an arrangement with em for now.

 

Barclays told me that a default notice, ie pay us within 14 days or ring us or we'll request the full balance or take you to court, is not actually a default and stays internal, not going onto my credit record as a 6 year default thing - yet the guy from Cahoot told me yesterday that it does. Which is it? I haven't defaulted yet, I'm offering to settle the whole thing.

 

Barclays say that while they sent me a letter offering up to 30% off if I settled, I can only offer 2-8% off the amount now that I've made an agreement.

 

Cahoot say well, you can write a partial offer to us but we don't have to accept it - and the 14 days on the default notice is up today; at least I rang them last night and they're expecting a letter now.

 

So, any way to go about this? I want to make sure my accounts are all closed, everything is in full and final settlement, and that I don't have a default notice on my account - I'm 4 months away from getting the last one finished. Oh, and I want to pay them less than they want lol.

 

Barclays I can't argue about bank charges with, already reclaimed £3k from them thanks to this site. With Cahoot they've charged me a few here and there, so could I use that as part of my negotiation? What is a reasonable amount to offer them eg cahoot comes to £7500....is offering about 80% ie £6000 going to make them laugh and throw it in the bin? Should I make a 10% or 15% offer to barclays even though she said 2-8%? Is a default notice all that bad? I got all this credit after not paying my phone bill 5 1/2 years ago but I'm just worried about mortgages in the near future... What if I didnt pay anything, I have no major assets at all other than a car in bits and an ancient computer lol, so it's not like they would get anything much out of me even if I ignored them.

 

Many thanks for any help, soz for the phat long post and plenty of questions :)

[Hobbie]

Write to them offering a F&F amount of settlement, be serious and realistic in the offer you make to them.

 

At worst both parties can say NO, at best they'll accept your offer, or even change the offer. No harm in trying.

 

But make sure you do it in writing and get the final offer back from each lender in writing, if accepted, ensure you pay within the time scale offered by each lender.

 

Ensure you mention in your letter that it is a Full and Final settlement offer, and that if accepted the accounts will be closed, and that all records at the CRA's are updated to reflect that the account is settled for the full amount, and any defaults are removed.

[overcharg3d]

Cheers Hobbie, that's basically what I've put into the letter I've put together since posting. Off to the post office......

[Hobbie]

Good Luck!

[overcharg3d]

Well, news just in: Cahoot accepted around 20% off - £6250 for £7500 outstanding, and Barclays have simply replied asking for details of my other creditors - but a definite result from Cahoot! Worth doing, definitely, saved me £1250

[Hobbie]

Nice one,

 

Certinally worth doing then in your case, As I'm sure £1,250 is better off in your pocket than it is in the banks