Can you make a deal with a Debt Collection Agency to completely settle a debt?

[Milly Weeble]

Dear All,

 

I have a Debt Collection Agency (the fourth courtesy of RBS) chasing me for £559.36 . Out of curiosity, can I make an offer (say £400.00 starting point, for example) to clear the debt once and for all? Or, will they simply hound me for the whole amount regardless?

 

All comments gratefully received.

 

Best wishes,

 

Milly

[alfwithhair]

Hi Milly

 

Is the outstanding balance still owned by RBS or have they sold it.

If it has been sold and you are on the 4th DCA and not a sign of any court action it could be there is no enforceable paperwork.

What kind of debt is it? loan, credit card, overdraft?

When did you last make any payment or acknowledgement to this debt?

Who is the latest DCA and who were the previous ones?

 

Did you make contact with the previous DCA's, if so was there a reason to dispute the amount?

[Milly Weeble]

Hi alfwithhair,

 

Many thanks for your quick response. I'll answer everything to the best of my knowledge:

 

Is the outstanding balance still owned by RBS or have they sold it?

 

Not sure. The letter I received recently states: "This letter is sent to you by way of an introduction to Lowell Portfolio I Ltd. Acting on behalf of Royal Bank of Scotland (the "Bank") and in accordance with the authority granted by the Bank on 30/12/2010..."

 

What kind of debt is it? loan, credit card, overdraft?

 

Overdraft (the balance of a 'part' refund of bank charges - I panicked, was exhausted with all the harassment and accepted an offer).

 

When did you last make any payment or acknowledgement to this debt?

 

Last payment was 23rd August 2006.

 

Who is the latest DCA and who were the previous ones?

 

Current DCA = Lowell Portfolio I Ltd.

Previous DCA = Wescot Credit Services Ltd.

Previous DCA = Moorcroft Debt Recovery Ltd.

Previous DCA = Intrum Justicia Consumer Collection

Previous DCA = Unidebt Collecitons (sorry, forgot about the fifth DCA!)

Original DCA = RBS

 

Did you make contact with the previous DCA's, if so was there a reason to dispute the amount?

 

I disputed the amount owed and I contacted RBS in July 2006. They couldn't supply me with full statements of the account and were unsure of the actual amount owed at that time. Therefore, I stopped payments until they could; they eventually sent statements in November 2006. I still disputed the remaining balance as it didn't add up, but they wouldn't listen to me.

I haven't heard anything from RBS, or any DCA's since November 2006. I've suddenly received this letter from the current DCA 1st February 2011, four years and three months later.

 

Hope this helps. If you need further information, please let me know.

 

Best wishes,

 

Milly

Edited February 11, 2011 by Milly Weeble

[MARTIN3030]

Looks like the account has been sold (Assigned to Lowell by RBS)

Have you looked on your credit file recently ?

The entries there should give you some information to explain whats going on.

If you considered that they did not fully comply with your SAR,then you should have told them so.

Do you know how the outstanding balance is made up ?

For example the portions that may relate to interest/ added fees etc.

What did the balance show on your last statement ?

What should the balance be taking away any repayments you made up to 2006 ?

[Milly Weeble]

Hi MARTIN3030,

 

Thanks for your speedy response. Hopefully the following will help:

 

Have you looked on your credit file recently?

 

I've registered online for Equifax today and there's nothing showing on there; clean as a whistle. I've already been a member of Experian, so I'll have to wait for the £2 statutory report through the post as not entitled to 30-day-free.

 

If you considered that they did not fully comply with your SAR,then you should have told them so.

 

I remember writing to them with concerns that they hadn't been deducting all my payments from the balance, but I received no response. I was psychologically exhausted by then (sounds dramatic I know, but true) so admittedly I let it slide.

 

Do you know how the outstanding balance is made up? For example the portions that may relate to interest/added fees, etc.

 

I now have absolutely no idea of what the outstanding balance is made up of. Originally (in 2006) the outstanding balance was the remaining balance of a 'part' refund of bank charges.

 

What did the balance show on your last statement?

 

The very last statement I received stated that I owed/was overdrawn by £1,302.00 - they then refunded £794.00 (I think, but I have kept the settlement letter as evidence) = £508.00 overdrawn. I'm currently being chased for £559.36. However, I need to go through all my statements from 2001 to 2006 to check they deducted all my payments. I haven't had a statement from them since November 2006.

 

What should the balance be taking away any repayments you made up to 2006 ?

 

Sorry, no idea - need to do some calculations before I know that.

 

Hope this helps.

 

All the best,

 

Milly

[MARTIN3030]

Ok thanks for clearing that up Milly.

Its strange theres nothing on Equifax.

If Lowell are updating your crf then you can assume it has been sold.

Yes I can see you have some calcs to do.

Your final statement from the bank should show balance and any charge off.

Under A CC request you would be entitled to ask for a statement of account,as well as details of any fees/interest added.

In fact you should be ok to ask for this under OFT debt collection guidance.

[Crapstone]

Personally I would do nothing. They have had more than enough time to take you to court for a relatively small sum of money. The fact that it's being passed on more times than some people change their socks tells me they won't go to court and just want a contact.

[Milly Weeble]

Personally I would do nothing. They have had more than enough time to take you to court for a relatively small sum of money. The fact that it's being passed on more times than some people change their socks tells me they won't go to court and just want a contact.

 

In all honesty, I just want them off my back once and for all. They sent me the letter 1st of February and they called me on my mobile by the 13th February. Really don't want to go through it all again, the threatening letters, harassing telephone calls, etc, etc...

[Milly Weeble]

Hello Everyone

 

Just received another letter from Lowell, part of it reads:

 

"The longer you leave getting in touch or paying off the balance, the more you risk further action being taken against you including legal action. We may also ask one of our agents to arrange a time to visit you at home to discuss your account and repayment of your debt if we don't hear from you."

 

What can I do or say if they attempt to come to my home?

 

All the best,

 

Milly

[harrassed senior]

You can send the following:

 

http://www.consumeractiongroup.co.uk/resources/templates-library/86-debt-collectors/590-letter-used-when-a-dca-threatens-a-doorstep-visit-

 

Just to cut through everthing (too lazy tonight to read everything:oops: when was the last payment from you paid on this account and to whom?

[harrassed senior]

I can understand why you need to make an offer, but £400 is way too high - start at 10% £50 but take further advice on exactly how to make this offer there is specific wording that needs to be in place.

[Milly Weeble]

Hi and thanks for your reply,

 

The last time I paid anything on this 'alleged debt' was 23rd August 2006 (4 years, 4 months ago). This was paid to the fifth DCA (Wescot Credit Services). Lowell are the sixth DCA, so far.

 

All the best,

 

Milly

[Milly Weeble]

Thanks for your comment...I've just had enough of them and can't face going through all the harassment again

[Milly Weeble]

Hello Everybody,

 

Just received a letter from Lowell's making an offer, as follows:

 

Pay in full - 75% as full and final settlement.

Pay 85% in 2 installments - as full and final settlement.

Set up a Direct Debit to pay the balance.

 

Any advice before I contact them with a view to getting rid of them for good!

 

All the best,

 

Milly

[247orbital]

If you are going to contact them write to them. I'd offer a very low amount to start with and see what they come back with. As others have said this has been in the hands of so many different DCA's that by now it would have been purchased for next to nothing. I'd offer £50 to start on the condition that they confirm in writing that this a full & final settlement and that the debt will not be passed on to any other DCA's. I'd also push for them to remove any data on the CRA files as its always worth a try.

I would try to see what exactly is charges on the balance and personally would not offer them any more than £100.

Most important thing is everything in writing.

I once had similar thoughts on a demand for payment for a mobile phone contract I knew I did not owe, but like you I just wanted them off my back. I offered them £50 (from a £100 balance £50 of which were charges) which they refused. When I started to research the DCA industry it led me to CAG and my rights as a consumer. Hence the DCA got nothing!