FFS offer based on IVA

[Owain1]

Good Morning

 

I currently have debt management plan and circa 50k of unsecured debt credit cards and loans. I have been paying into this for 2 years. I do not want this to run for 15 years I have recently had a child etc blah blah blah. I have started going through an IVA adviser and I am on the cusp of proceeding.

 

I want to put a final settlement offer to the banks now that my income and expenditure for the IVA is finalised. I have not got the full amount that they will get on the IVA over 60 months but I can get around 80% from the bank of Mum and Dad... IVA advisor charges 4.5k over the term which is also factored in to the IVA I&E.

 

As anybody been here or can offer advice before I send?

 

Thanks

Edited September 30, 2012 by Owain1

[brokebutnotbeatn]

Write to your creditors and explain the situation. The National Debtline has a good editable letter. Explain your circumstances have not changed but on the birth of your child you disposable income is to be significantly reduced so your parents have raised £x to enable you to offer a F&F . All creditors who have passed your debt on, even to in-house collectors - will accept 75% of a debt without much argument. Most 70% with some argument. All will want you to ring them once you have written your F&F letter and you won't close it out without doing so. But keep the letter in front of you. Stick to those arguments. All will ask for an I&E so you will need to point out they already have one - handy to know when this was last sent to them btw. Who are your creditors?

[Owain1]

Thanks for the reply, it amazes me that people are willing to take time out and reply... Welling up here!!

 

I have contacted one creditor today and settled £12.5k with a lot of haggling for £2.5k. 20%, This is what they would have got through the IVA.

 

Just hoping now the other creditor HSBC/Metropolitan accept my offer or it's down the IVA route I go. I'm using the PPI refund and lack of signed agreement as a potential bargaining tool although I'm unsure how much weight that carries nowadays. I read somewhere that the bank can produce a copy of the agreement even though not signed and that this is acceptable. Do you know any more on this?

 

Thanks

[ims21]

The other thing you should seriously consider doing is reclaiming any unlawful penalties that have been applied to any credit card or loan account.

 

Also look at whether there is any PPI on them to reclaim.

 

Reclaiming these plus interest can put a big dent in the amount you owe. When you know the amount you really owe then you will be in a better position to negotiate your F&F.

[Bandit127]

If you are looking at an IVA for one debt with an unsigned agreement I would hold the horses big time on that. Is HSBC your only other creditor or are there others that might crawl out of the woodwork?

 

How do you know the agreement is unsigned? Did you do a CCA request? Did they say the "original is no longer available"?

 

If they do not accept your F&F offer then you should check back to see what your options are before you enter an IVA.

[Owain1]

Thanks for the replies.

 

Bandit127. I requested the loan and credit agreement through normal channels. There is no agreement with HSBC credit card and no signed loan agreement. They sent me a copy of the agreement I would have signed on both accounts. I read a case where an equivilent can be produced in court and can be accepted. i don't know enough and this is my frustration. An IVA would only include NR with HSBC and MBNA which is who I settled with, mentioned in previous post. Although if I settle IVA is more unlikely. I need them all to settle.

[Owain1]

ims21, thats sound advice and definitely one I will pursue.

[Bandit127]

Sorry if this is technical.

 

You can request a copy of your agreement under a law - the Consumer Credit Act 1974. (This is a CCA request). They can produce what is called a reconstituted copy. This can be taken from information they have from the time the agreement was made. So it doesn't need to be a photocopy but it does have to meet certain requirements. Your name and address at the time for example.

 

If they cannot comply with the requirements then taking you to court is unfair - this means they will not take you to court. And a simple defence will see them off if they do. (This is HSBC not a bottom feeder DCA so don't worry about that)

 

However for debts that started before April 2006 they have to have the original, signed agreement to get a CCJ anyway. If your debts started before this date then it sounds like they don't have the originals for either account and you are on solid ground.

 

What is the NR debt about? These were normally secured.

 

P.S. Definitely try to string them out while you look at claiming back any charges per ims21's advice.

[Owain1]

NR unsecured loan with the infamous together mortgage.

 

The CC is from the 90s and there is no agreement. I requested the CCA £1postal order etc etc. They told me that it could not be found. I'm assuming that this is unenforceable???

 

The loan from 2007 I was sent a reconstituted agreement. I'm assuming that this is enforceable?

 

Thanks again

[Bandit127]

CC is unenforceable.

 

The loan from 2007 - check the start date. A full answer is that S.127 of the CCA 1974 was repealed by the CCA 2006 Schedule 2, which came in to force on 6th April 2007. If your agreement predates that then S.127 applies and they need the original, signed copy.

 

If your agreement comes after then you should check for compliance of your reconstruction. If your reconstruction is not compliant then you should send them a letter pointing out exactly why.

 

Post 2007 non compliant agreements are not a safe defence to a claim - but a non compliant agreement should help your F&F negotiations.

 

Good work so far by the way - a 20% settlement is very respectable indeed. Please pin them to the wall with a written agreement that they will set the balance to zero and not pass the debt on. I have read too many stories of people settling by phone to have the remainder of the debt rise up like a zombie with another DCA a few years later to presume that you know all about this.

 

I am sure you know your stuff anyway, but here is a good guide for reference with a template letter.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

[Owain1]

Thanks, Different approach tomorrow me thinks. I'll keep all informed...