Blackhorse loan settlement offer refused - please help!

[flower5]

Hi everyone.

I hope I am at the right place. I am desperate for advice; even after 4 days of continues reading around the site, I am still a bit confused.

In 2005 I took a loan out with Blackhorse buying furniture in DFS. The loan was for £ 1,041.00. I was paying it back ok till about a year ago my financial situation went downhill. After a long angry debate, we amicably agreed to £10 a month payments as a temporary repayment plan although CAB advised on a considerably less figure. I just couldn’t take it anymore and gave up when they said they will accept £10. Now I am a bit better off and want to pay it off. So. I called them and offered 25% of outstanding amount. They refused! According to CAB statement I can pay them £4. I am a bit angry now and thinking shell I reduce my payment and follow CAB advice now or it too late?

Reading around this site I wonder now if I should send them a CCA request and I am also aware that they put some charges on top, so looks like I can ask for charges details too.

I have initial Credit Agreement Contract with T&C but they might wouldn’t.

Any help will be appreciated greatly.

Thanks a lot in advance.

[jumpjet]

Hi flower5,

 

If you have a copy of the agreement from 2005 I would think that they would have also. As I understand it, companies have been a lot more thorough with agreements in the last few years. But don't let that stop you cos you never know.

 

If you are going to make payments I would stick to what CAB advise you should pay.

[flower5]

Hi scamjet. Thanks for a quick response. I am just not sure if I can reduce my payments. I know that they hustle me again but I am ready for it. I thought I don’t mind paying £10 in the beginning but after they refused my settlement offer I have changed my mind

[questioning]

I suspect the best way would be write to them with a new revised I & E showing that you can now only afford a reduced payment of £4.oo.

Start paying that and stick to it.

Be prepared for some hassle or they might except it, who knows. How ever if you have shown that is all you can afford then they would probably have to lump it.

I would in your position not bother though and keep paying the £10 as you can afford it and then offer them another full and final settlement a bit later on. You may find that they except it the second time. I think they may have not excepted it the first time because they thought that by doing so you might come back and offer more.

This is only my opinion though. Its just a thought.

Good luck Q.

[flower5]

Thx Q

I will put my offer in writing though because the person on the phone was just a Joe Blog.

I can't afford £10 really, that's way I want to CAB and got a new statement.

[jumpjet]

you can reduce your payments at any time, but you should prove the neccessity by sending an accompanying statement of expentiture (income & 0utgoings).They won't like it and will probably say its not enough but they would not look good in court if you have provided an accurate statement, as this is what a court would ask for if you were required to pay a judgment by instalment.

 

You are going to get letters whichever way you go!

[questioning]

Thx Q

I will put my offer in writing though because the person on the phone was just a Joe Blog.

I can't afford £10 really, that's way I want to CAB and got a new statement.

 

So sorry I miss read/ misunderstood, if you can only afford the reduced payment then put it in writing with your new I & E, send recorded, keep receipt and copy of the letter. start paying the reduced payment when your next payment is due.

They will have to lump it.

As I said before offer a F & F at a later stage.

Always write never speak to any of them on the phone.

[flower5]

Fantastic, will do that. Thank you so much for your support.

[flower5]

An update:

Just finished my letter:

 

my name and address

DATE

Blackhorse

Senior Collections Manager

Re: 00000000000

FULL & FINAL SETTLEMENT LETTER FOR ANY DEBT

WITHOUT PREJUDICE

Dear Sir/Madam

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to offer to pay the money which I owe in full. I have been paying £10 every month as a temporally reduced repayment program. Unfortunately my situation is not getting better. Further more, I was getting some financial help from my friend and relatives up to July 2008 however they now experiencing financial problems as well and cannot help me anymore. Therefore I would like to notify you that from July 2008 I can only afford to pay you £1.14. However, I can raise £100 and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you or any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within 7 working days of receiving your written agreement of this offer and method of payment. This amount is only available to me for a short period of time and I will appreciate if you come back to me ASAP.

I look forward to receiving your reply.

Yours faithfully

[havinastella]

Hi Flower,

 

Before you send the letter can I ask you a few questions?

 

1) How much was the loan for, how long,payments amount and how many payments you made before your problems?

 

I find Blackhorse always have the proper paperwork but are a nightmare to deal with

 

http://www.consumeractiongroup.co.uk/forum/other-institutions/143436-havinastella-blackhorse.html?highlight=havinastella

 

I would send B/H something like this

 

Dear Sir or Madam,

ACCOUNT NUMBER : xxxxxxxxxxxx

Could you please send me…

A statement of my account comprising

(a) the total sum paid under the agreement by the debtor;

 

(b) the total sum which has become payable under the agreement by the debtor but remains unpaid, and the various amounts comprised in that total sum, with the date when each became due;

And

 

© the total sum which is to become payable under the agreement by the debtor, and the various amounts comprised in that total sum, with the date, or mode of determining the date, when each becomes due.

I understand that there should be no charge for this service.

Yours Faithfully

Then you will know exactly what charges are on the account and offset them in your settlement figure.

Jogs

[flower5]

Hi havinastella

Thanks a lot for you advice. I already printed out a letter from your template and will send it tommorow. I know rough figure of everything owed by it always better to know foe sure.

By the way I found this thread with useful templates if anybody interested ; re: creditors:

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

[flower5]

Hi Everyone

Just a quick update. After I sent my settlement offer I received a letter accepting my offer as a Full and Final settlement.

I did not say in my previous communications (too superstitious) that some time ago I met a woman who at that time was working for a company organising Voluntary Financial Arrangements for people, I think they are called IVA or something like that. She told me that some time these agencies make it worse for their clients approaching all creditors at the same time in the attempt to reduce total amount owed to 25%. She advised me at the time to start from the smallest creditor and offer 25% of the outstanding debt when I am ready.

So, I did. I offered them 25% and they accepted. One down 9 to go.

[havinastella]

congrats flower

 

:D:D