Full & Final Settlement Offers Rejected - Now what?

[Hingis]

Hi all,

 

A while ago I took over some debts for my mam as she was struggling to cope with them. I offered all her creditors £1/month, which all have accepted and I've been paying them for a few months.

 

I'm in a position to help my mam out with these debts, but I only have 25% of the outstanding balances (she owes £10,000 to about 11 different companies) so I broke down the £2500 and made offers to her creditors.

 

Today, some of her creditors have written to say they will not accept the offer. Should I stick to my guns and offer them the same amount and advise them this is only a goodwill offer by myself and I'll not be offering it again or should I try to see if I can increase the offer to say 30%?

 

I really want to help her get rid of these debts!

 

What's the best way to proceed?

 

Many Thanks

Edited October 14, 2009 by Hingis

[geoffthechef]

stick to your guns and tell them its your goodwill or a £1 a month

[Hingis]

Will do!

 

Today she received two letters. 1 advising they will accept and the other are wanting nearly 50% of the balance to settle.

 

I'll pay the creditor who has agreed and send the ones who are refusing or offering higher settlements a letter, stating other creditors are accepting the 25% and see what happens from there.

 

[Reader]

Hi Hingis, just a thought but have you cca'd them yet? Are you sure they have properly executed credit card agreements? If they have not got an enforceable agreement some caggers have offered 5 or 10% of the balance as a full and final offer.

 

Better than 25%

 

Reader

[Hingis]

Hi Reader.

 

I haven't cca'd them come to think of it. I was just trying to get the amount of letters she was recieving under control at first by offering them one pound token payments.

 

Would it be a good idea to send a cca request with the same offer and leave it upto them to decide seen as i've already offered 25%? Or just send the cca request by itself and see what happens?

 

Many thanks

[andydd]

Hi Reader.

 

I haven't cca'd them come to think of it. I was just trying to get the amount of letters she was recieving under control at first by offering them one pound token payments.

 

Would it be a good idea to send a cca request with the same offer and leave it upto them to decide seen as i've already offered 25%? Or just send the cca request by itself and see what happens?

 

Many thanks

 

CCAing them will give you a lot more bargaining power (should the agreements be a bit iffy ).

[Reader]

Hi I agree with Andydd. Definitely send a CCA request to all creditors and see what they come back with - post on CAG and we can take it from there. If they do not respond within 12 plus 2 days then they are in default of your request and you can put the account into dispute and stop payments.

 

Personally this is what I have done, it is a very bumpy road but you will get loads of help from CAG.

 

Much better to offer 5 or 10% instead of 25% any day.

 

I CCA'd first then after 5 weeks I sent a SAR request to them all too, to see if I could claim any charges back etc and also again for the agreement (as most don't comply as they haven't got one).

 

If they don't have a proper agreement this will give you loads of bargaining power.

 

Good luck

Reader

[Dotty50]

Hi Hingis,

 

Just beware that some CCC's will accept a reduced settlement and sell the remaining debt on to someone else who will continue to pursue it.

 

If you get any offers, it is most important to get written confirmation that they will not pass the debt on.

 

It is also likely to appear on the CRA's as partial settlement.

 

I have tried 1 so far but no luck yet but have requested CCA in the first instance.

 

Good luck