settlement percentage

[golfillini2]

i have been offered a lump sum to pay off my unsecured debt, but the settlement figure works out to 20% of the debt.

 

Would DCAs except this figure

[BRIGADIER2JCS]

A DCA may well accept the offer but I would suggest

starting to offer at 10% leaving room to negotiate.

Please do not make any speculative payments as

a Full & Final payment make the offers in writting

and get clear written acceptance.

You can make the offers conditional on the removal

of all adverse data from the credit reference agencies.

[bhoy1976]

i have been offered a lump sum to pay off my unsecured debt, but the settlement figure works out to 20% of the debt.

 

Would DCAs except this figure

 

That would depend. Many say that these DCA's buy the debt or are sold the debt for as little as 10p in the pound. How real that may be or how close to that figure may depend on the original amount. I offered about 30% of my £9.5K loan, upped it by a further £1K but eventually they settled for 50% recently. That was as much as i had to negotiate with luckily. I would say start low regardless of the amount you have and if you have anymore, use that as your bargaining chip. Because if you start with all that you have, and they reject it, you have nothing to go back with. It's not being dishonest, its an unwritten rule of negotiating.

[Im on a journey]

it depends on length of debt your age and whether the creditor thinks they will get more back in the long run. this is what a creditor told me when i was going through this last year with mbna! send the full ans final letter off and see what they come back with. but check any ppi and charges first

[dx100uk]

i'd never pay a dca anything!!

 

get reclaiming first to drop the outstanding balances

 

then check your CRA file to make SURE any debt shows!

 

hope you've not blindly been paying them

!

 

dx

[firstship]

Hi bit more info would be helpful.,which DCA has made the offer and do they own the debt.

 

If the DCA owns the debt taking into account what they paid for the debt,(7% to 15%)if it was 20% of the balance outstanding that would be quite good but before you accept any offer update us on who etc and what the balance is outstanding along with the original amount,was there any PPI and have there been any charges.Sorry lots of questions but Full and Final can be a minefield

 

Regards FS

[rockwell304]

i'd never pay a dca anything!!

 

get reclaiming first to drop the outstanding balances

 

then check your CRA file to make SURE any debt shows!

 

hope you've not blindly been paying them

!

 

dx

 

Absolutely spot on! As for speculating on the amount a DCA would pay an OC, I would guess it is nowhere near the percentage mentioned in an earlier post.

 

A couple of years ago someone on this site managed to discover the purchase price a DCA paid to Barclaycard for their outstanding CC debt.......it worked out at 3%. Not a bad business model if they are recovering 50% in full and final settlement!

[dx100uk]

have you received any discount letters fromany dca's?

 

if you have, drop the debt

 

if a debt does not show on your cra ignore those debts too

if you are paying to a debt that is not on your cra

i'd have a serious think about WHY?

 

dx

[golfillini2]

Yes it certainly is a minefield. I have had an informal arrangement for over four years now. All are showing on my credit file. I have reclaimed the ppi.

 

I feel that i should pay back these debts, but unfortunately due to unforeseen financial restraints i am unable to fully satisfy them.

 

This offer from a family member is only on the table with the proviso it clears the majority of the unsecured debt.

 

Not sure as to what to say in the f&f letter. I am not the best at writing offical sounding letters.

[dx100uk]

have you checked for penalty charges too?

 

F&F details are below in my sig.

 

but pers i'd NEVER F&F a debt

unless ALL neg data is removed AND the debt is marked SETTLED & not Partial settlement.

 

you might as well BURN the money if they wont do that.

 

dx