DCA and Credit Reporting

[Stephan56]

By way of background, I have circa £40K in unsecured CC debts and my oveall goal is (i) to pay these off at circa 25% (i.e. £10K - I have the money set aside to fund this) and (ii) ensure the reports to the Credit Reporting Agencies are such that any debt is reported as being PAID IN FULL. I want anyone reading the credit report to take way that the debt has been paid off in total.

 

The debt is spead (not equally) amongst 10 CC companies, of which only one has been able to provide a copy of a signed and executed credit Agreement. There is a monthly payment programme in place with all of them, whi has been adhered to.

 

I have had offers to settle at 50% of the amount claimed - but am pushing for better deals.

 

The questions I have are:

 

1. What is the "sticking point" about CC companies (and more importantly those companies/DCAs that have bought the debt) reporting that the debt was paid in full? They will agree to a reduced amount for settlement but seem "hung up" with my demand that the debt be reported as paid in full. Surely, if they are just interested in getting as much money as possible they should NOT CARE what they report to the credit reporting agencies (CRA). If a DCA that bought a debt for 10p then settles it for, say, 40p or 50p, then they have made a big profit. If a condition of making that profit is to submit a report, consistent with my requirements, to the CCA then why not do it? Am I missing something? Can someone explain the thought process behind this relucatance on the part of CC companies and DCAs? Is there any tctic I can use to make them agree to my demand/condition?
   
2. Is getting the designation PAID IN FUll the one I should go for, or is there another designation that achieves that purpose?
   
3. If no Credit Agreement produced, can I make it a condition of settlement that ALL records related to that debt (including from the original CC company and any subsequent DCA) is COMPLETELY deleted (so no record of me ever having had the debt in the first place). If so, how does one go about it?
   
4. Is the reluctance of a DCA to accept, say, 25p in the £1 (when they bought a debt for, say, 10p in the £1) down to some "hard and fast rules" or is it just they think they can get more out of me. I would have thought a "quick profit" with no hassle and which allows a DCA to close its file would be attractive. Appartently not. Any thoughts as to i) why and (ii) how to positon myself as so unlikely to pay in future, that 25% looks attractive to them?
   
5. Anyone have any figures for the amount debts bought for and then the settlemetn figures? Are there any statistics on this If a debt is bought for, say, and average of 10p by a DCA then is the average settlement 25p, 40p? I want to know the range of figures.
   

Many thanks in advance for responses to some or all of these points.

[babybear39]

One way of maybe getting them to accept is to state that all F&F settlements are for a very limited time and depend on a family member lending you the money.

[Stephan56]

Thanks. I have always made any settlement offer on the basis that I need to borrow the money from friends/family, that these people will impose conditions prior to lending me the money - with the key conditions being that (i) settlement amount is in the bottom quarter of the "norm" for settlement of similar debts and (ii) the settlement results in a rehabilitation of my credit record. If my credit rating is shot already, why pay to settle (if the settlement does not improve that record) when I can just pay small amounts every year under the agreed repaynt plans. Under the plans I have agreed it will take the CC companies and DCA 25 plus years to get their money - even more incentive I would have thought to settle for a lump sum now

[babybear39]

DCAs and logic don't go in the same sentence

[Stephan56]

I am ust chasing up so this thread does not get passed over as I really do need a more detailed response to my queries. I need to write to these people today/tomorrow and want to get all my facts straight before doing so. Any help much appreciated.

[cashins]

I think you may be expecting to much logic from what is a very fragmented industry and it would also appear that what was true for one company a year ago, may not be true now.

 

By way of example: MBNA were very unlikely to take court action themselves a year ago, now it is commonplace. It would also seem that many take decisions using some kind of 'scorecard' based on likelyhood of any action being defended/are there any assets to go for or would they wind up with a CCJ for a £1 a month anyway.

 

Generally, all OC's and DCA's will lie to you if it is in their interest. For any settlement you need it in writing that:

 

The account is marked satisfied. (S)

 

All adverse information is removed.

 

They will not pursue any part of the debt.

 

You also need to pay through a 3rd party or you will find that despite the above, most will promptly sell the balance of the debt onto yet another DCA.

 

David

[Stephan56]

Thanks for the very helpful advice which I will incorporate into the letters I will write later today.

 

Can you ust clarify the designation "Satisfied". What does that signify? Does it shows to those checking my credit file that the account has been "paid in full" or does it somehow send a signal that I have paid less than the full amount claimed?