Considering making F&F payment on default - Suggestions please

[b1gdeano]

Good afternoon,

 

I am considering making a Full & Final settlement proposition to the DCA on a debt that was originally an overdraft from Barclays. The debt is currently with Lowell Portfolio, and the total debt is £650

 

The default was logged on my file on 28/10/2010 and was originally by Barclays, but after Lowell got the debt they also logged a default for it, which I had to contest with the CRA in order to get Barclays to remove their default as Lowell as new owners had added one, which Barclays eventually did.

 

Anyhow, I got the odd letter from Lowell, threatening various things etc, then got the "solicitors" letters which then turned back to Lowell letters etc.

 

Most recent letter is one saying they are about to pass it over to ScotCall as of the 18th April, but can still communicate with them till this point.

 

I am fed up of these letters, and know that scotcall do doorstep visits which I want to avoid as don't want them coming round when im not there and my partner and 18 month old is.

 

So this is why I am considering writing to Lowell offering a F&F of approx. £200 as that is all I can realistically afford, as I am not in a position to make monthly payments to them, and ideally do not want to even acknowledge the debt unless it is to make this F &F and get it paid up and satisfied.

 

What do you guys think I should do, and do you think they will take £200?

 

Thanks in advance

[unclebulgaria67]

Yes you could do that. They probably paid less than 10% of the debts value to obtain it, so yes £200 may be accepted. But you would have to follow through to make payment, as otherwise with the acknowledgement, they might as well issue a court claim and obtain the full amount over a few years, plus interest.

 

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

 

letter J on the above link.

[b1gdeano]

Is there a particular way I should offer a F & F to them, considering I have not contacted them previously, nor been making payments to date?

 

I want them to understand I will not be paying monthly, so it would be a settlement or nothing.

 

As for following through with payment, I would be doing so if they accepted, no worries there

[unclebulgaria67]

Is there a particular way I should offer a F & F to them, considering I have not contacted them previously, nor been making payments to date?

 

I want them to understand I will not be paying monthly, so it would be a settlement or nothing.

 

As for following through with payment, I would be doing so if they accepted, no worries there

 

Did you not read the letter linked to ? It is writing to the owner of the debt Lowells, making a reduced one-off payment to fully settle the debt. You then wait for Lowells to come back to you to confirm acceptance or to decline your offer. If they accept it as full payment, then you arrange to make the payment on the basis that it represents full settlement of the debt, as agreed by Lowell. If they reject it, then you will have to decide what to do/

[b1gdeano]

Did you not read the letter linked to ? It is writing to the owner of the debt Lowells, making a reduced one-off payment to fully settle the debt. You then wait for Lowells to come back to you to confirm acceptance or to decline your offer. If they accept it as full payment, then you arrange to make the payment on the basis that it represents full settlement of the debt, as agreed by Lowell. If they reject it, then you will have to decide what to do/

 

Apologies,the link was timing out for me at first and I didn't know what the link was toThanks

[b1gdeano]

Well I sent the F & F offer out, will wait to see if they accept it or not!

[LisaBT]

Hi there,

 

I was informed today that an old loan I had with HSBC, which was then passed to Metropolitan has now been sold to Moorgate. I have to provide I&E which I have read on here I am obliged to do. I am worried however, how this is reflected on my Credit file. HSBC issued a default on this account back in 2009, and with the debt being sold on Moorgate have confirmed that the account will now sit in their name with the Default. They also said that the payments I will make to them will appear on my credit file each month.

 

I am so worried now, as the default occured in 2009 - are they going to issue a new default? Also, the defaulted account which currently sits on under HSBC shows no further information since the default was issued, i.e. the monthly payments etc. I am happy to pay the outstanding balance in this way, but I am worried that the default will be issued again at a later date so then stays on my credit file for even longer.

 

I have no idea what my rights are here, and I asked Moorgate if they could send out some information as I informed them that I dont have an agreement with Moorgate. They asked me what information I need, and I didnt know.

 

THis is really distressing and any help/advice is much appreciated!

 

Thanks,

 

LisaB

[BRIGADIER2JCS]

Hi Lisa welcome to CAG.

 

Don't worry no further default can be issued on this account, nor can the original default be changed.

You now have an agreement with Moorgate as they will have acquired the ''whole original agreement''

with the rights and obligations existing under the agreement.

BTW you are under NO legal obligation to provide personal income & expenditure data unless it is ordered

by a court!

[LisaBT]

Hi Brig,

 

Many thanks for your advice!!

 

I have told them that I will call them back, but since then have been trying to find as much information out as I can. They have however, rang me everyday and left messages for me to call them back.

 

I was going to consider asking a family member to completely pay these off, but I have no idea what offer they will take, or indeed how I go about doing it. The guy on the phone told me that I can make an offer over the phone, but I have also to complete an income and expenditure exercise in order for them to consider the offer. Then, I will only hear back in writing if the offer is accepted or not.

 

Is this because they want to know how much money they can make out of me? I have read a lot about this, and believe that they only pay 10% for the debt, so I've no idea how much they will take. I really hate this because I never missed any payments, for over 20 years, then I ran into financial difficulties and asked HSBC if they could help by allowing me to make lower payments i.e. £50 lower, so £300 instead of £356 for a period of 6 months. They said they couldnt help but if I took out a management loan for a further period then they will help. I was paying capital only at this point so they were wacking on interest payments all over again. It was at this point I went into a DMP because I didnt want to take out any more debt. HSBC then issued defaults and I hate them for it! Which is why I am simply furious and want to pay as little back on this loan as I can. HSBC treated me awfully.

 

Sorry for moaning, I just think HSBC have no morals and I dont know what else to do!

 

Any advice is appreciated!

Lisa

[BRIGADIER2JCS]

Hi Lisa, you are not obliged to provide any I&E data.

You are quite right to refuse the ''management loan'' it is always

bad to borrow more from a bank to cover existing loans.

 

What was paid for the debt by a debt purchase for any account really is speculation and can have no bearing on the amount offered in full and final payment.

 

If you are going to use a relatives money to make the offer then you should start at no more than 15% of the balance outstanding then you have room to negotiate.

 

Make the offers conditional on the following points:

1. The remaining balance is not to be sold on to any third party.

2.All CRA files are to have ''defaults'' removed and marked settled.

 

The offer is to be accepted within 7 days in writing confirming agreement

with the conditions.

 

Do not be tempted to send money without the written agreement, you will

loose out and be left to pay the balance.

 

Back to HSBCs management loan this breaches OFT Guidance regarding ''encouraging debtors to take further borrowing to clear outstanding debts''.