Most effective strategy for winning a reduction in settlement figure on bad debts?

[CAGareBrilliant]

We have various debts that have been in different states of long-term default, being paid under small monthly arrangement payments to DCAs.

 

We now have a sum of money available, nothing like the totals owed, but I have heard you can good discounts off bad debts to settle and it would presumably help my credit file somewhat in the long run to have them declared satisfied.

 

My question is this - what are the best ways to approach DCAs (or the original lenders) in this situation? What should one say?

 

I've thought of some ruses like saying "oh, I'm facing bankruptcy anyway and you won't get much at all", or "we're going to live in Africa - this is only a formality for us", but I'm not sure if those will cut much ice. What has worked for you?

 

What percentage can I get away with in making offers - how low do people go?

 

Thanks for any input!

[silverfox1961]

Hi. Sorry you were missed.

 

Holding someone to ransom will look bad for you such as the statements you listed.

 

I've thought of some ruses like saying "oh, I'm facing bankruptcy anyway and you won't get much at all", or "we're going to live in Africa - this is only a formality for us", but I'm not sure if those will cut much ice. What has worked for you?

 

Any debt with a DCA will have been bought for as little as 10p in the £ (although some will be higher)

 

I would work out what you have to offer each creditor then cut it in half as a first offer. Some may accept.

 

Once you have at least one acceptance you can then say to other creditors that others have accepted your offer.

 

Essential rules for settling a Full and Final.

 

1 Always deal in writing.

2 Default is marked as 'satisfied' 9but if you are happy with partially satisfied then omit)

3 A written acknowledgement that any remaining amount will not be passed to any other party.

 

You may not know that when making a F&F any remaining debt is still recoverable unless agreed in writing that will not happen

[CAGareBrilliant]

Hi. Sorry you were missed.

 

Holding someone to ransom will look bad for you such as the statements you listed.

 

 

 

Any debt with a DCA will have been bought for as little as 10p in the £ (although some will be higher)

 

I would work out what you have to offer each creditor then cut it in half as a first offer. Some may accept.

 

Once you have at least one acceptance you can then say to other creditors that others have accepted your offer.

 

Essential rules for settling a Full and Final.

 

1 Always deal in writing.

2 Default is marked as 'satisfied' 9but if you are happy with partially satisfied then omit)

3 A written acknowledgement that any remaining amount will not be passed to any other party.

 

You may not know that when making a F&F any remaining debt is still recoverable unless agreed in writing that will not happen

 

Thanks so much for replying!

 

That all sounds like pretty good advice.

 

On your last point, do you mean that I must get them to state that the payment is full and final satisfaction before handing the money over?

 

Many thanks.

[silverfox1961]

On your last point, do you mean that I must get them to state that the payment is full and final satisfaction before handing the money over?

 

YES! Never part with a penny unless you get this in writing.