What is a realistic settlement figure?

[tetley75]

Hi, I'm helping a family member with his debts, we've CCA'd them all, most have been uable to produce anything but one has and he has a couple debts that were from catologes and weren't able to CCA. He's also had refunds back from Bank charges, Credit Card charges, PPI and even DCA refunds.

 

We'd now like to use some of this money to settle the DCAs who have produced a CCA or don't need to. Could you let me know what a realistic settlement figure would be, are we talking 50%, 25%, 10% of the original debt? He has also just been made unemployed at 62.

 

Any advice would be a great help so we can finish dealing with these companys once and for all................Luke

[smithy73]

I am in the process of F+F some of my debts. I would write to the DCA explaining his personal situation and age and start off with an offer of 30% and explain its a pro rata offer across all his creds. If they decline the offer leave it a while then go back and increase the offer.

Who are the creditors DCA in question?

[PriorityOne]

Several things....

 

Firstly, you can CCA catalogues.... so if your friend hasn't done it, tell him to do so.

 

Secondly, how certain are you that the documents that your friend has been provided with are enforceable CCAs ? A lot of the garbage that gets sent out by DCAs are application forms... They know it, but hope that you don't and will pay them anyway.

 

Thirdly, if he's unemployed.... I would forget about him offering a F&F until/unless his circumstances improve. In the meantime, he can pay £1 a month towards his debts (if there is an enforceable CCA) and there's berger all they can do about it.

 

[LJL]

My advice is to start as low as possible - say 10% and then slowly work up, try to put a ceiling on at 50% and stick to your guns.

 

Negoitiation is just a game, the person on the other end of the telephone has targets to reach!

 

I negoitiated most of mine at about 50% except when Barclays was nearing CCJ stage when it was about 60%

 

Talking in £ instead of percentages can also be useful and also you can offer stage payments e.g. £10,000 debt, I'll give you £4000 in 2 x £2000

 

Often negoitiation is a game of nerve!!!

[tetley75]

I never relised you could CCA catalogues, that knocks one on the head straight away, all but one have failed to provide CCAs, the one that did is Thames credit, it seems to be enforcable, however there is a mixture of views on it, the thread is below.

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/143330-recieved-cca-thames-credit.html

 

I'll tell him to hold of on the full and final then, how does retiring effect the repayment of debts?

 

Thanks for all the great advice so far.

[PriorityOne]

My advice is to start as low as possible - say 10% and then slowly work up, try to put a ceiling on at 50% and stick to your guns. What ??!

 

Negoitiation is just a game, the person on the other end of the telephone has targets to reach!

 

I negoitiated most of mine at about 50% except when Barclays was nearing CCJ stage when it was about 60% That is a VERY high settlement... sorry.

 

Talking in £ instead of percentages can also be useful and also you can offer stage payments e.g. £10,000 debt, I'll give you £4000 in 2 x £2000

In the absence of any paperwork, this is WAY too high !! Sorry again....

 

Often negoitiation is a game of nerve!!!

 

It most certainly is....

 

[Goldlady]

Considering that DCAs pay around 5% or in many cases much less to buy the debts in the first place, taking into account their costs in issuing threatograms and employing a few ex school bullies, i think 10% is more than enough.

[PriorityOne]

I never relised you could CCA catalogues, that knocks one on the head straight away, all but one have failed to provide CCAs, the one that did is Thames credit, it seems to be enforcable, however there is a mixture of views on it, the thread is below.

 

http://www.consumeractiongroup.co.uk/forum/debt-collection-industry/143330-recieved-cca-thames-credit.html

 

There seems to be huge debate going on over this one.... but it does look enforceable and I would hesitate taking any chances in court with it, to be honest.

 

I'll tell him to hold of on the full and final then, how does retiring effect the repayment of debts?

 

No income as such.... if he's on Benefits.

 

Thanks for all the great advice so far.

 

[PriorityOne]

Considering that DCAs pay around 5% or in many cases much less to buy the debts in the first place, taking into account their costs in issuing threatograms and employing a few ex school bullies, i think 10% is more than enough.

 

If they're lucky....

[Goldlady]

I prefer the zilch method personally:D Creates a much healthier cashflow.

[PriorityOne]

I prefer the zilch method personally:D Creates a much healthier cashflow.

 

Yep.... that's all mine got as well. ....

[tetley75]

I will air on the side of caution with that CCA, it would be my relative in court and to be honest he doesn't really understand the whole CCA process. Thanks for all the advice though it's been a huge help, I will get in touch with him and see how he wants to proceed and then get back to you then.

[tetley75]

Hi everyone, had a bit of bad luck and recieved another cca from BLS this time, its in regards to a lloyds loan, would you please be kind enough to take a look and offer your opinion as to whether its enforcable or not. I did notice that the PPI box as not been ticked by my relative but has been typed so this may offer up a PPI Reclaim too.

 

Image of BLS CCA - Photobucket - Video and Image Hosting

 

Thanks in advance.

Edited June 28, 2008 by tetley75

[PriorityOne]

This one looks enforceable to me.... but I would run it past Paul (pt2537) in order to check if the figures have been calculated correctly.

 

If so, then I would suggest that your friend makes token payments against this one (no more than he can realistically afford)... and also look into re-claiming any unlawful fees/charges that may have been added.

[tetley75]

Hi mate, I thought as much, thanks for checking for me, i've offered a really low offer of £50 to thames credit, i explained thats he's been made enemployed and is only 3 years off retirement and he can't realistically afford any repayments as his outgoings exceed his incomings. I've heard nothing yet, failing that offer it'll be a quid a month.