Can you settle outside of a debt management arrangement..

[samdad]

Hi there, helping out my father in law.

 

He has 10 creditors and an arrangement to pay set up for 9 of them.

 

During the course of paying the creditors my father in law has received early settlement vouchers.

 

Do I need to contact the debt management company to negotiate early settlement or can I contact each of them individually?

 

Finally does anyone know what a typical settlement % a debt collection agency is likely to take?

 

Thanks

 

Sam

[renegadeimp]

Hold up. What do you mean early settlement vouchers? Which creditors are you paying? Are they the original creditors or DCA's? Were you offered any discounts? have you ever questioned the paperwork on the debts?

 

Find out the full facts before you go making settlements or even paying a DCA a penny.

[oleg]

No fixed rate for early settlement. It depends on a range of factors. However, this is irrelevant at this stage. You have much else to do first.

Is he using a fee-charging D M C? If so, ditch them NOW. Either do it yourselves or use a free provider.

List a summary of his debts here, including debt type, amount, initial agreement date, creditor, current chaser if different [has it been assigned?], current monthly instalment.

Do not at this stage pay any DCA one penny more, as reneg says.

And DO NOT TALK TO THEM ON THE PHONE.

The guys here can take things on after receiving your summary info .