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Mother been Paying DCA's through Stepchange £400pcm for +8yrs - still £9k to pay - Best way to make F&F offers?


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Hello all,

I’m helping my Mum settle some of her debts, and I’m trying to understand the best way to approach this. She has been paying back through a DMP set up with Stepchange for the past 8 years. My Dad has lost income due to the Covid so we want to clear the debts whilst we still can.

 

She has about £9,000 outstanding. £2,450 is with the original creditor (Capital One)

whilst the remaining is with debt companies including

Hoist (£700),

Idem (£500) and the remaining with

Link Financial (around £6k).

 

She has been paying about £400 a month via Stepchange but has brought this down recently to £150 due to my Dad's loss of income.

 

We have written to the debtors asking for a CCA 2 weeks ago. We are awaiting from the debt collection companies but we received a response from Capital one last week.

 

Our intention is to email them offering a F&F repayment. I plan to make a F&F repayment offer of 15% and send the following to Capital One via email:

 

Dear Sir/Madam

 

Without prejudice

 

Account No: XXX

 

I am getting advice from National Debtline on dealing with my financial situation and choosing the right debt solution for me.

I am writing about the money which you are claiming on the above account.

 

I can confirm that I am unable to pay the money which I owe in full.

 

My husband has recently lost significant income due to the Coronavirus situation and we have had to reduce our repayments via Stepchange by 50%.

 

However, I can raise £370. A family member has made a one time offer to gift me the money to pay off the debt once and for all. I want to offer this as full and final settlement of the account. I am making this offer on the clear understanding that, if you accept it, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability.

 

If you accept this offer, please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed.

 

I can pay the amount I have offered within 2 days  of receiving your written agreement of this offer.

 

Please give me details of how I can pay.

 

I look forward to hearing from you.

 

(Please note, all further correspondence should be addressed to me. National Debtline are a self-help agency and are not acting as my representative).

 

Yours faithfully

 

Does this seem to be the correct approach?

 

Any advice?

 

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just remove all ref to it send the offer and pay it regardless to if they do or dont reply/accept you do NOT need a debts owners permission to pay what is propsed you are simply informing hey thi

yep stop here being a DCA cash cow.  as you've seen none of the DCA's have anything enforceable   as for the cap1 cca , you've removed date so not sure when she took this card out, howe

is the IP address traceable to the area they live in? as for the signature on the other, i will guess its correct?   dx  

as she's been (blindly?) paying these debt for more than 8yrs i will guess most were defaulted long ago so are now no longer showing on her CRA file?

 

pers i'd stop paying everything and get CCA requests off to all those covered by the CCA.

 

as for those not covered by the CCA like OD's etc.get SAR's off to the original creditors.

 

waste of money settling debts that can no longer hurt her and might never be enforceable.

go have a holiday 

 

dx

 

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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There is no need to use the ''without prejudice'' misnomer, it means nothing, only powerless DCA's use that to give themselves a feeling of authority.

 

I wouldn't be sending them anything, why poke the bear?

Definitely wouldn't be giving them a heads up that their profit income is going to dry up.

 

Stop paying, and fire off those CCA's (obtaining proof of posting which is free from the PO counter) or SAR's like DX has suggested and put the money your poor mum has been wasting in a nice holiday fund.

 

Stay OFF the phone, keep everything in writing ONLY, and keep a paper trail of evidence. 

Who ever heard of someone getting a job at the Jobcentre? The unemployed are sent there as penance for their sins, not to help them find work!

 

 

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Posted (edited)

Thank you both for your responses.

 

We have sent a CCA request to all creditors and Capital One have responded with the relevant documentation, hence why we are making them an offer.

 

It was my understanding that if a company comes back with the proper CCA documentation then we should make a F&F offer. Is that not the case? If not, what should we do once a company has provided the proper CCA documentation?

 

Edited by techno20
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read upload

scan it to one multipage PDF.

 

these debts are all very historic? and no longer on her credit file.

so not paying can't hurt her ESP if to a DCA, they are not bailiffs and have ZERO legal powers on ANY debt no matter what it's type.

 

and original creditors don't do court either they'll sell it on

please don't waste here money!!

 

 

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks dx100uk.

 

I have attached a document of the responses we have had to our CCA requests thus far. To confirm, all debts were defaulted on in 2013.

 

I have advised my Mum to cancel paying to Stepchange.

 

What would you recommend with Capital One, given they have produced the CCA?

 

 

Replies-6th-Apr.pdf

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where's the actual cap1 cca return please

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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6 hours ago, techno20 said:

I have advised my Mum to cancel paying to Stepchange.

yep stop here being a DCA cash cow. 

as you've seen none of the DCA's have anything enforceable

 

as for the cap1 cca , you've removed date so not sure when she took this card out, however it appears its pre 2007 as the charges say £15, i would simply continue to pay the same £pcm she was paying through stepchange directly to cap1.

 

now as this is very historic i would be getting an sar off to them as i bet the outstanding sum is well inflated by unlawful penalty fees for late/over/default/letter etc etc , these are all reclaimable at their int rate ...or that sum should be removed from any 'real balance' 

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks dx100uk.

 

The agreement started on the 12th Feb 2001, so yes pre 2007.

 

We will send the SAR in the morning following the template.

 

Any recommendations on how to swap from paying through Stepchange to paying Capital One directly?

 

Also, do you recommend making a F&F offer to Capital One following the SAR? We would like to get this fully solved.

 

Thank you very much for all of your help.

 

 

 

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Stepchange you said is already cancelled? so simply use bacs or set up a standing order for £xpcm direct to cap1 as one would normally pay .

 

you will need to workout the true debt minus charges and the interest they've caused using our spreadsheets when you have all the statements to even think about what to poss offer as an f&f if that ever is appropriate.....

 

 

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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She hasn't cancelled Stepchange yet. We will do so in the next 24 hours. Should we contact Capital One to let them know before or after? Also should it be done via phone, email or letter?

 

Ok. Will send SAR request and then use the spreadsheets.

 

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no cap1 wont care as long as they get the same? ish payment £pcm do you know what that was?

 

 

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Posted (edited)

The payment to Capital One is now at £44.89 due to a renegotiated Stepchange following the change in my father's financial situation (as of this month). It had been around £150 a month for the last few years.

 

I've explained the legal situation to my Mum however she'd like to make a minimal F&F settlement offer to the DCAs to finally put an end to this. Whilst I don't necessarily agree, I do understand she has had a horrible time with the debts in the past and would rather draw a full line under it. With that in mind, I plan to send an amendment of the ND letter:

 

Dear Sir/Madam

 

Account No: XXX

 

I am writing about the money which you are claiming on the above account following your letter on 26th March. I have been advised to stop repayments as you are unable to provide a valid credit agreement.

 

However, I would like to offer a full and final settlement offer of 5% as a gesture of good will. A family member has made a one time offer to gift me the money to pay off the debt once and for all.

 

I want to offer this as a full and final settlement of the account. I am making this offer on the clear understanding that, if you accept it, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability.

 

If you accept this offer, please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed.

 

I can pay the amount I have offered within 2 days of receiving your written agreement of this offer. This offer is valid for 10 working days.

 

Please give me details of how I can pay.

 

I look forward to hearing from you.

 

Yours faithfully

 

What do you think? Anything missing? I'm not sure if "If you accept this offer, please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed." is necessary as we have already defaulted.

 

 

 

Edited by techno20
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without an enforceable agreements the debts to the DCA's are dead. they can't do anything.

please don't pay them.

 

i know she is old school, but does she really want to give the DCA free money to use to hassle another person just like she has been scammed all these years by them....

 

these debts should not be in her file, she was defaulted years ago, they can't comeback.

 

offering an F&F does NOT finally put an end, it legally acknowledges the debt resets the statute barred clock and then they sell the rest onto the next DCA and it all starts again...WISE UP read some of the threads in the debt self help forum here.

 

please!

 

dx

 

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please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks dx. I'll speak to her. Thanks for your help. Sent the SAR this morning to Cap 1. Do you have a link for the calculators you mentioned for when we get the information back?

 

 

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Latest Spreadsheets - PPI Claims and Charges Claims - Dec 2011 - Payment Protection Insurance (PPI) - Consumer Action Group

 

it would be a two step process

1st put all the fixed sum unlawful penalty fees each one on its date into the CISHEETS.

the claim to date would be the date Cap1 stopped charging her interest, that avg interest figure would need entering into cell D15

 

from the date 1 day after cap1 int stopped you take the resultant whole sum from that sheet and put it into the statint sheet , that sheet will automatically calculate the additional 8% statutory interest she is entitled to, you leave the claim to date alone.

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks dx100uk. I am currently discussing with my Mum. She is worried that the DCAs will start adding interest to the debts once we cancel Stepchange. She is also wary that we've not heard back from Link, the DCA with the highest debt amount. 

 

The CCA request letters were signed for by Link on the 16th of March, 15 'business days' ago..

 

 

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once a CCA request has passed 12+2 working days the owner of the debt is in default of the legal requirements of the act and can for want of a better word be ignored until/unless the respond.

 

as for interest being added again, no they can't do that. the agreement allowing that has long since been terminated.

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thanks again for all your help on this dx100uk. We've now received responses from all the DCAs saying they do not have the CCA so we have stopped paying through Stepchange. We are now only paying to Capital One, and we are paying it directly.

 

We have received a response from the SAR we sent to Capital One. I've run through the transactions part of the document and I had 3 questions:

 

1. All transactions are listed from 13/02/2002 to now however the months preceding Feb 2002 (March 2001 - Jan 2002) only list: Statement Date, Minimum Payment Due, Credit Limit, PPI charge and new balance. Do you know why that would be, and should I take any action on this?

 

2. I have noticed the following charges looking through the transactions:

 

Late or failure to pay

Cash advanced fee

Cash interest

Purchase interest

Overlimit fee charge

Interest (applied)

Late payment fee

 

Which of these charges should I be including in the spreadsheet?

 

3. The last interest charge was on the 6/01/2013 whilst she defaulted on the 29/1/2013. Which date should be used for the date that Cap1 stopped charging her interest?

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hey well done, you might have saved her a pot of money there and nicely removed her from the DCA's cash cow milking troughs..sad as always these supposed free debt charities give such poor advice..8yrs of money down the drain..simply running the sb date to infinity.

 

as for cap1 

i've highlighted a few things above in answer.

do any fees appear on 1st statement you have?

 

as for the PPI payments, inc each of those too, even though that bird has flown.

 

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Yes I wish I had been in a position to help a few years ago but better late than never... Thanks for the updates.

 

PPI charged is 'No' across all months, so not relevant I assume.

 

There are no fees on the first detailed statement in Feb 2002, only interest (applied) charges. Is it worth pursuing this, or should I just take it in good faith that there wasn't any fees?

 

There are a late payment fees in September 2002 and May 2003 however both were refunded (we assume on appeal?). I assume these should not be included on the sheet. The first non refunded is May 2005.

 

Regarding interest rates. There are a few 'notice of default sums' letters from 2009 included they have an interest rate of 8.510% in the March 2019 and slightly lower rate of 8.010% for June, September and October. The letter states: "we are not entitled to charge you interest for the first 28 days. However, if the sums are not paid in full by that date interested will be charged at a rate of 8.010%. Since this interest rate is a variable rate, the rate which we will apply to the default sum once the 28 days have passed may be different." The interest rate of default sums from the back of the CCA is 13.9% PA. Which percentage should I use in the spreadsheet?

 

 

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the highest!

 

ok so doesn't look like any long term penalties so old statement prob not that relevant

 

 

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Thank you. Ok so based on the above the CI sheet outputted £334.44 and putting that into the STINDT spreadsheet gives a total sum of  £556.79.  

 

What should the next step be?

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so gives you a ball park figure to negotiate off if it ever went down the F&F route

you could complain to cap1 about them in a letter how you'd get on is another matter.

 

there are Cap1 reclaim threads here to research if you wish.

 

  • Thanks 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Share on other sites
  • dx100uk changed the title to Mother been Paying DCA's through Stepchange £400pcm for +8yrs - still £9k to pay - Best way to make F&F offers?

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