Making an offer for settlement

[missworry]

Cabot currently own a few of my debts which were passed to them via my bank.

 

I am making very small monthly payments to cover the outstanding monies

- I am sure Cabot would like me to pay more but I can't.

 

However, thanks to a family member I have been offered a bit of financial assistance in the way of an interest free loan to get the debt collectors off my back.

 

I wish to offer Cabot a settlement figure for the 2 outstanding debts (credit card & current account) so that I can bring this matter to a close.

 

I would like to know what is the best approach and is there a recognised minimum % that can be offered by myself

which they would have to accept, also are there any templates that would be suitable here on CAG that I could use.

 

Thank you

[unclebulgaria67]

There is a letter in this link. ( letter J)

 

http://www.consumeractiongroup.co.uk/forum/content.php?590-Creditors-and-DCAs-Letter-Templates-Budget-Planner

 

Obviously make it very clear what debts you are wanting to clear with full & final offers or do a separate letter for each debt.

 

It depends on how old these debt were, but I would think you would need to offer a min of 20% of the debts current balance showing.

[missworry]

There is a letter in this link. ( letter J)

 

http://www.consumeractiongroup.co.uk/forum/content.php?590-Creditors-and-DCAs-Letter-Templates-Budget-Planner

 

Obviously make it very clear what debts you are wanting to clear with full & final offers or do a separate letter for each debt.

 

It depends on how old these debt were, but I would think you would need to offer a min of 20% of the debts current balance showing.

 

 

Thank you so much:-D

[Bazooka Boo]

Whoa whoa whoa, slow down!

 

Offering F&F before you have all your ducks in a row is going to be money wasted!

 

Which Bank is this?

How old is the credit card and how much is the outstanding balance?

 

How much is the current account?

 

Have you reclaimed any of the unfair charges that will have been added to these accounts?

 

Does Cr@pbot own the debt or are they simply the gophers in between doing the banks dirty work?

 

Have you received a notice of assignment from the bank, and a default notice for the credit card?

 

Check your credit files and see what is on there, ie, who's name is next to the default marker, if there is one.

 

Don't offer them anything at all yet, there is much more info you need to get off them and indeed tell them in order to make a F&F, if you simply make an offer now, not only do you reset the clock so you can be chased for another 6 years, but if you pay that 20% then the other 80% they will sell to another DCA to chase.

 

So if you can answer some of the above questions first, it will put you in a much better position to get them dancing to your tune.

[missworry]

That made me stop and pay attention!

 

I will look through my records and get back to you.

 

Thank you for your advice.

 

Here are the answers to your earlier questions;

 

Which Bank is this? Lloyds TSB

 

How old is the credit card and how much is the outstanding balance? £6341.00 -The card was issued some 6 years ago (approx). However, I fell into arrears some 3 years ago along with my current account.

 

How much is the current account? £970.00

 

Have you reclaimed any of the unfair charges that will have been added to these accounts? Yes

 

Does Cr@pbot own the debt or are they simply the gophers in between doing the banks dirty work? Cabot own the debts - I have a letters from both Lloyds & Cabot saying they do.

 

Have you received a notice of assignment from the bank, and a default notice for the credit card? Yes

 

Check your credit files and see what is on there, ie, who's name is next to the default marker, if there is one. I have not been able to access my Experian account as of yet but from memory Cabot are named. Of course I will make sure later on today.

Don't offer them anything at all yet, there is much more info you need to get off them and indeed tell them in order to make a F&F, if you simply make an offer now, not only do you reset the clock so you can be chased for another 6 years, but if you pay that 20% then the other 80% they will sell to another DCA to chase. I will confess I am more than alarmed when you write that I could rest the clock simply by trying to reach a settlement figure with Cabot - how does this work?

 

Thank you once again.

[Bazooka Boo]

OK good, thank you, got to pop out so will look in later, but in the meantime, stay off the phone to any of them about this.

 

Keep a diary of events, and collate as much info as you can on this.

 

When in 2007 did you take this credit card out? Or was it in 2006? Ever asked for the agreement?

[unclebulgaria67]

You can make the F&F offer making it clear that this is to settle the debt and that they will mark the debt as satisfied, not selling on any amount.

 

Given that the total debt amount is over £750, be aware that DCA's are increasingly using bankruptcy, rather than obtain a CCJ. I doubt that you manage to avoid any action within 3 years, before the debt becomes statute barred. If you are able to obtain a lump sum, it may not be such a bad idea to offer a one-off amount to settle the debt in full. Cabot will have probably paid 10% or less of the debt value to purchase it, so if you are not in a position to afford decent repayment amount, they might be willing to accept a reasonable F&F.

[dx100uk]

i've never known lloyds to get any reclaims right.

esp on PENALTY charges for a credit card.

 

whatever you do you must:

 

demand that the debt is marked as SETTLED not PARTIAL SETTLEMENT

demand ALL negative data [markers for late / missed etc] are REMOVED from the account history.

 

if they wont do BOTH of those

then you might as well BURN the money

 

and check if these debts SHOW on your CRA file.

 

if they don't - they are not harming you & i question WASTING the money.

 

dx

[missworry]

You can make the F&F offer making it clear that this is to settle the debt and that they will mark the debt as satisfied, not selling on any amount.

 

Given that the total debt amount is over £750, be aware that DCA's are increasingly using bankruptcy, rather than obtain a CCJ. I doubt that you manage to avoid any action within 3 years, before the debt becomes statute barred. If you are able to obtain a lump sum, it may not be such a bad idea to offer a one-off amount to settle the debt in full. Cabot will have probably paid 10% or less of the debt value to purchase it, so if you are not in a position to afford decent repayment amount, they might be willing to accept a reasonable F&F.

 

Thank you for your help.

 

i've never known lloyds to get any reclaims right.

esp on PENALTY charges for a credit card.

 

whatever you do you must:

 

demand that the debt is marked as SETTLED not PARTIAL SETTLEMENT

demand ALL negative data [markers for late / missed etc] are REMOVED from the account history.

 

if they wont do BOTH of those

then you might as well BURN the money

 

and check if these debts SHOW on your CRA file.

 

if they don't - they are not harming you & i question WASTING the money.

 

dx

 

Thank you for your advice too.

 

OK good, thank you, got to pop out so will look in later, but in the meantime, stay off the phone to any of them about this.

 

Keep a diary of events, and collate as much info as you can on this.

 

When in 2007 did you take this credit card out? Or was it in 2006? Ever asked for the agreement?

 

Sorry for the delay in getting back to you on this.

To my surprise the card was actually taken out in 2000 and I have a copy of the T&Cs (agreement) along with my signature. Also checked my credit file and Cabot not Lloyds have their name against the debts, this corresponds with the letters I have from Lloyds and also Cabot themselves.

 

What's my next best course of action?

 

Thank you in advance for you help.

[dx100uk]

well itputs tou in a slightly better position

as dca are more likely to accept a low F&F.

 

what are the default dates on the CRA file?

 

dx

[missworry]

Default dates;

Credit Card 06/07/11

Current acc 12/03/11

[dx100uk]

urm.. a good few years till they drop off then.

 

so nothing more to reclaim.

 

dx

[missworry]

I will go through all my letters and the banks letters too so that I double check.

 

 

Assuming there are no further charges that I can reclaim what do you consider my best plan of attack?

 

Thank you.

[dx100uk]

well it treally puzzles me why they sold a +£6k debt to a DCA

 

there must be something wrong with them

 

is the CCA compliant?

 

dx

[missworry]

I believe so, I can not spot anything untoward with the CCA.

 

 

Why do you say there must be something wrong with them?

 

 

You have me intrigued but a little bit worried at the same time.

 

[Bazooka Boo]

Usually a debt of that amount will remain with the OC as it would be in their interest to collect it all instead of selling it on.

 

They really only sell on what is called toxic debt, as they know that it is either full of reclaimable charges/fees or PPI, and the only way of getting anything back from it is to sell it on, and claim of their insurance to fully reimburse them.

 

Nothing to worry about.

[daverules]

That copy of the T&Cs (agreement) along with my signature from your own records or what a DCA sent you via a CCA request?

[missworry]

Yes it was.

 

Thank you.

[missworry]

Usually a debt of that amount will remain with the OC as it would be in their interest to collect it all instead of selling it on.

 

They really only sell on what is called toxic debt, as they know that it is either full of reclaimable charges/fees or PPI, and the only way of getting anything back from it is to sell it on, and claim of their insurance to fully reimburse them.

 

 

Nothing to worry about.

 

Well that is very strange then?

 

Could they of just made a simple mistake?

 

Thanks for your reply and help so far.

[missworry]

Hi Bzooka Boo,

When you wrote

"if you simply make an offer now, not only do you reset the clock so you can be chased for another 6 years, but if you pay that 20% then the other 80% they will sell to another DCA to chase."

I do nut fully understand how this can be,

If I were to make Cabot an offer of 20% and they except and agree to the settlement figure,

how can they then sell the debt back to another DCA to peruse me for the remaining 80%?

- The BIG QUESTION IS....

.what steps do I need to take to prevent this from happening in the first place.?

 

Many thanks.

[dx100uk]

post 9

 

dx

[missworry]

post 9

 

dx

 

Sorry for taking a while in getting back to you.

 

Thank you for your your help. x

[missworry]

Hello,

 

Some while ago I started a thread asking about settlement offers to a DCA.

 

 

The link provide in that post no longer works?

 

 

http://www.consumeractiongroup.co.uk...Budget-Planner

 

I assume that page has been moved, but my question is where has letter "J" been moved to?

 

Thank you

 

[ATTACH=CONFIG]48990[/ATTACH]

[dx100uk]

was that signed agreement you mention a result of a CCA return from cabot

[missworry]

was that signed agreement you mention a result of a CCA return from cabot

 

Thank you for replying. Yes it was Cabot.

 

I need a template for making a final settlement offer, but I can no longer find it on here?

 

Cheers