Full & Final settlements

[DigbyD]

I rung my creditors at the beginning of the week to ask for full and final settlement figure to give me an idea of how much I would owe if I got the money to pay the lot off.

 

Once they have given me these figures, is it ever wise to try and negotiate further and if so, what is the best way to do this - by phone? letter?

 

These are debts that are going to take years to pay off at the current rate Im paying them so I would assume they want to release them but no one is offering me any less than 78% settlement at the moment.

 

Thanks in advance.

 

Digs

[linz2011]

Are these with the OC or DCA's - I honestly would start very low - they can only say no - start at 10% and it may end up at 25% - DCA's are more likely to accept them than OC's

 

Good luck

[sequenci]

have a read of this:

 

National Debtline England & Wales | Debt Advice | Factsheet 24 Full And Final Settlement Offers

 

 

 

I rung my creditors at the beginning of the week to ask for full and final settlement figure to give me an idea of how much I would owe if I got the money to pay the lot off.

 

Once they have given me these figures, is it ever wise to try and negotiate further and if so, what is the best way to do this - by phone? letter?

 

These are debts that are going to take years to pay off at the current rate Im paying them so I would assume they want to release them but no one is offering me any less than 78% settlement at the moment.

 

Thanks in advance.

 

Digs

[DigbyD]

Are these with the OC or DCA's - I honestly would start very low - they can only say no - start at 10% and it may end up at 25% - DCA's are more likely to accept them than OC's

 

Good luck

 

They are all with DCAs and have been for around 5 years.

 

One firm in particular, Intrum Justisia, offered me a settlement figure of 50% back in February which I couldnt accept at the time , but now its 80% - I said "Why cant you accept what you offered in February" and they told me theres no way the "litigators" would accept it.

 

Thanks for the replies

[linz2011]

If I was you I would send a CCA to each DCA - see what they come up with then when they do not supply you with anything you will be in a much stronger position to negotiate as they cannot threaten court etc as they have not complied with your request.

 

Good luck

[DigbyD]

If I was you I would send a CCA to each DCA - see what they come up with then when they do not supply you with anything you will be in a much stronger position to negotiate as they cannot threaten court etc as they have not complied with your request.

 

Good luck

 

How do I go about sending them a CCA? Am I right in assuming that before I offer any settlement I should at least find out who owns the debt (for instance does the bank still own it or does the DCA own it) before committing to any settlment.

 

I will go and hunt down CCAs in the search box, thanks!

[rory32]

Template N http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html is the CCA request. Send it recorded with a £1 crossed postal order. Do not sign the letter.

[DigbyD]

Template N http://www.consumeractiongroup.co.uk/forum/general-debt/20758-creditors-dcas-letter-templates.html is the CCA request. Send it recorded with a £1 crossed postal order. Do not sign the letter.

 

Thanks for that. Ive been having a read around the site about CCAs and the effect it could have on my situation but Im struggling amongst all the legal jargon!

 

Ive just looked at the last few letters sent by the DCAs and a couple of them refer to the banks/credit card companies as "Our client" and say things like "Our client has instructed us" etc . Am I right to assume that the DCA in this instance dont actually own the debt?

 

At this current time, I have interest frozen on everything and am not paying more than £20 per month on any debt - £10 per month on others (total debt around £10k). By requesting the original CCA to those who dont own the debt, is it likely to get sent straight back to the bank? For those that do own the debt, does that mean I will have more bargaining when it comes to full settlement because they are likely to have purchased the debt cheaply from the bank in the first instance?

 

Sorry, just trying to work out the purpose of requesting the CCAs!

 

 

 

Edit : Just read some other posts. So it seems that if I request a CCA it may turn out that the debt is not enforceable in which case I might not even have to make a settlement figure at all - am I right?

[Duffers Mum]

Deleted - posted on wrong post!

[DigbyD]

Ok....sent all my creditors the CCA letter by registered post along with £1!

[42man]

I think you'll find that when the DCA's see your request for the CCA agreement, they will get incredibly sweaty underneath the collars.....and they may well come back and say, 'well er um, we've erm had a think about it and we'll settle for 50%' - keep us posted Digby....

[rory32]

Am I right to assume that the DCA in this instance dont actually own the debt?

 

Yes.

 

By requesting the original CCA to those who dont own the debt, is it likely to get sent straight back to the bank?

They will request a copy of the agreement from the bank. If the bank don't have one the DCA may close your account and send it back to the bank.

 

For those that do own the debt, does that mean I will have more bargaining when it comes to full settlement because they are likely to have purchased the debt cheaply from the bank in the first instance?

Yes, without a copy of the agreement the debt is unenforcable. If there is no copy of the agreement you can decide whether you want to make an offer at all. Obviously if you do make an offer you want any adverse entries on your credit file removed as well.

 

Remember all full and final acceptances need to be given in writing before you pay any money.

[DigbyD]

Thanks all for your great advice. Just playing the waiting game now, sent all 5 CCA requets by registered post and 4 out of 5 have been received - will now see wether the cheques are cashed.

 

Edit: Reading through I noticed I have exactly the same debt as this poster with cabot so will watch this thread closely for advice:

 

http://www.consumeractiongroup.co.uk/forum/cabot/95565-me-cabot-financial.html?highlight=hitachi

[deadflag]

We have ten debts, six now with DCAs and four with OCs. These are currently under a DMP. However, it looks possible that we might shortly be able to raise about 30% of the total and move towards offering full and finals on all the debts.

 

1: Is this a percentage the creditors are likely to go for? Alternatively, is it too much?

2: Would it be a useful formality to send CCA requests, in case any of these debts turn out to be unenforcable? In those circs we could make more attractive settlements with remaining creditors.

 

Any thoughts? Many thanks.

[sequenci]

1: Is this a percentage the creditors are likely to go for? Alternatively, is it too much?

 

there really isn't a definative answer, however, if a dca has bought the debt they would be more likely to consider a small amount such as 20-30%.

 

2: Would it be a useful formality to send CCA requests, in case any of these debts turn out to be unenforcable? In those circs we could make more attractive settlements with remaining creditors.

absolutely

[deadflag]

Thanks for the advice. I guess the main worry I have is that I am asking for rather low f&fs, and don't want to prejudice the likelihood of reaching an agreement by riling the creds with CCA requests.

 

One other question I can't seem to find an answer to in here is what one does should a creditor fail to produce a CCA on request. Is it a matter of writing to inform them of their position and demand that they right one's credit history, or would it be more diplomatic to offer them a smidge of money to cover their costs (assuming that in case of DCAs the cost is the 5-7% they have bought the debt for)?

[rory32]

I guess the main worry I have is that I am asking for rather low f&fs, and don't want to prejudice the likelihood of reaching an agreement by riling the creds with CCA requests.

Their decision on whether or not they will accept your full and final is a purely financial one. So things like having made reduced payments for a long period of time, e.g. 12 months, will affect their decision as they are looking at how likely you are to pay off the debt. As far as DCA's are concerned they like cash lump sums as when they buy a debt they can't be sure that they will collect on it or not.

 

what one does should a creditor fail to produce a CCA on request.

 

Once they default on providing a copy of the agreement they can't enforce the debt. However, if you want them to remove adverse entries on your credit file you may have to give them an incentive (either that or take them to court).

[deadflag]

Thank you very much! Your comments give me hope. We have moved 300 miles to obtain a stable income, and are selling a house we loved to realise our ambition of freedom from debt. To think we might soon achieve this is incredibly gladdening. Mind you, reading some of the harrowing tales on here, I think we have gotten off fairly lightly. I'm only now realising how deeply awful this whole experience has been, and discovering this site has been a great comfort and help. Once we're out of the mire I think we'll be pushing that Donate Now button.

[rory32]

Once we're out of the mire I think we'll be pushing that Donate Now button.

Please do

 

We survive on donations. All are very gratefully received.

[DigbyD]

Interesting on my CCA requets.

 

I sent five by recorded delivery. One of them has not yet been signed for................yet they cashed the £1 cheque! Funny that !

[DigbyD]

Got my first reply yesterday. It was from a DCA who appear to own the debt (Where it says client, it is listed as the DCA) and they are basically saying they will now close the account.

 

http://www.consumeractiongroup.co.uk/forum/debt-collectors-debt-collection/114062-cca-request-what-do.html#post1127816

[42man]

A good result already Digby !!!

[42man]

Who was the DCA Digby ??

[DigbyD]

Another reply, this time from Cabot.

 

Please find enclosed your cheque for the £1.00 fee.......

 

Basically saying they have forwarded my request on to the original creditor who will forward this to me accordingly. They say there might be a delay as they have to retrieve these from the archives and they want my patience and co-operation.

 

Im wondering now if the original creditor (Hitachi Nova) will get out of the 12 day rule because its been requested by Cabot and not myself and have not cashed the £1 cheque.

[DigbyD]

Who was the DCA Digby ??

 

Intrum Justitia.

 

The 'clients' name was "Intrum Justitia Debt Finance" so Im assuming Intrum Justitia basically bought the debt and now cant come up with an agreement.

 

I have requested my credit file from experian to see what I need to do now as its not clear from IJ if the debt is written off or if its been passed around.