Metropolitan - Do they do full and finals?

[king123]

I'm making full and final settlement offers on some of my debts (those that are with bottom feeding DCAs). A couple of my debts are still with the original creditors so I'm paying them nothing in the hope they'll sell the debt on.

 

The one I'm unsure about is Metropolitan Collection Services as I know they're really HSBC in disguise (debt is with HSBC First Direct). Has anyone ever done a discounted full and final settlement with MCS or would I just be wasting ink and a stamp?

 

(I'm starting with an offer of 25% btw).

[Hardupnotfedup]

Have they got an enforceanle agreement, if they haven't it will be a lot easier to negotiate a much lower offer.

Start at 10% if they haven't

[harrassed senior]

I presume that you have gone down all avenues to check this alleged debts, ie CCA requests, as HUNF says if you have, then they are much more likely to accept an F & F, and as advise, always start low and hope they will settle below your max.

[king123]

Yes, I've done all that and am now wondering if Metropolitan ever accept full and finals.

[harrassed senior]

The only way t know for sure, is to try. Good Luck (that is not meant to be sarcastic by the way!)

[Old Cogger]

Would be interesting but well judging by there track record - let us see?

[Guest HeftyHippo]

youre more likely to get an acceptance from the bank itself rather than Metro IMHO, also, 25% is MUCH too high

 

Typically debts are sold for 6%-20% of face value, so your opening offer should be in that range.You can increase it during negotiations, and if necessary you can go up to 25% or more. If you start at 25%, they will expect to push that up and you'll be paying well over the odds on its current 'value'.

 

There are a number of pitfalls to FnF and you need to ensure that they cannot accept your money and then chase you for the rest, or sell it to another to pursue the rest (in some circumstances, both are legally possible even with a FnF)

[the_shadow]

youre more likely to get an acceptance from the bank itself rather than Metro IMHO, also, 25% is MUCH too high

 

Typically debts are sold for 6%-20% of face value, so your opening offer should be in that range.You can increase it during negotiations, and if necessary you can go up to 25% or more. If you start at 25%, they will expect to push that up and you'll be paying well over the odds on its current 'value'.

 

There are a number of pitfalls to FnF and you need to ensure that they cannot accept your money and then chase you for the rest, or sell it to another to pursue the rest (in some circumstances, both are legally possible even with a FnF)

 

Whilst the above is perfectly valid for a debt sold on, this is not the case here. Metropolitan is a part of HSBC and therefore no transfer or sale of the debt has taken place. It currently has its full "book" value until sold.

 

I think we need to wait for what comes back from Metro before looking into the technicalities of the offer as I suspect they'll dismiss it out of hand at first offer anyway.

 

S.

[Guest HeftyHippo]

sigh, there is so much nit picking on peoples post these days.

 

yes, shadow, you are totally right that this debt hasn't been sold on, but I am totally right that if HSBC do sell the debt on, then all they will get is between 6-20%. if the poster can convince them that they will not get all the balance from him within the foreseeable future, and if he is paying at a suitability low rate that the effort of monitoring the account, and processing payments means the involved costs swallow up a large proportion of his low payments, and if he adds in a certain amount of disruption by way of missed payments and letter writing, then they may decide that they would be better off getting rid, in which case, if they think they can exploit his lack of knowledge by getting a larger sum that the would do from a DCA they may sell to him. But, Metro are not likely to do anything more than offer, some (long) way down the line, some 'fantastic' offer in the region of 25% off. The bank themselves will make the decision as to what they will settle for and not Metro.

 

I am also correct that in some cases, the bank can accept a FnF offer and then pursue you for the balance, or else sell the balance to someone else who can chase you. That applies regardless of making the offer to Metro or the bank

 

And of course Metro will reject the first offer. That should be expected, which is why I said (and others) said his offer should be lower.

[the_shadow]

sigh, there is so much nit picking on peoples post these days.

 

Nit~picking? methinks people are a bit too defensive these days

 

yes, shadow, you are totally right that this debt hasn't been sold on, but I am totally right that if HSBC do sell the debt on, then all they will get is between 6-20%.

 

..and the hefty tax relief for the debt also.. NEVER forget this as large debts can help their balance sheet.

 

if the poster can convince them that they will not get all the balance from him within the foreseeable future, and if he is paying at a suitability low rate that the effort of monitoring the account, and processing payments means the involved costs swallow up a large proportion of his low payments, and if he adds in a certain amount of disruption by way of missed payments and letter writing, then they may decide that they would be better off getting rid, in which case, if they think they can exploit his lack of knowledge by getting a larger sum that the would do from a DCA they may sell to him. But, Metro are not likely to do anything more than offer, some (long) way down the line, some 'fantastic' offer in the region of 25% off. The bank themselves will make the decision as to what they will settle for and not Metro.

 

Sorry, I was giving my opinion after not only having dealings with both HSBC / Metropolitan but also reading heavily the HSBC thread over the years... HSBC just dont appear to accept anything other than large f&f... or perhaps the sucessful ones just dont get published or spoken about... who knows!

 

I am also correct that in some cases, the bank can accept a FnF offer and then pursue you for the balance, or else sell the balance to someone else who can chase you. That applies regardless of making the offer to Metro or the bank

 

Which is why I didnt state anything about this, you are absolutly correct in that any payment should come from a third party with the specific text of being in full and final settlement after a confirmation they will not be chased.

 

And of course Metro will reject the first offer. That should be expected, which is why I said (and others) said his offer should be lower.

 

Its all in the way they decline tho... if they are interested they'll leave the gate open, if they arent they'll slam it shut ;-)

 

S.

[Old Cogger]

Didn!t the Government put a stop to Tax Relief earlier this year??? written of shedules?

[king123]

Thanks everyone for your input and encouragement.

 

I didn't post earlier as didn't want to tempt fate but am happy to report that they accepted my offer and have now banked the cheque Considering they are in-house and this was an enforceable debt I consider it a very good result

 

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