Debt management and settlement

[tomm0]

Hi all,

 

My partner has an agreement with a DMC, they make payments to 5/6 creditors on her behalf, we'd like to have a go at making settlement offers to the creditors. On the latest DMC statement i noted most of the creditors are other debt recovery firms. In order to make a settlement offer would we contact the original creditor (I.e barclaycard) or the current creditor?

 

Separately, due to the age of the debts it is unsure who the original agreement was with. Is the Current creditor obliged to disclose this information?

 

Thanks in advance!

[National Debtline]

Hello there,

 

If it is a 'debt management plan' that your partner has been under it is possible to come out of that arrangement and to deal directly with the creditors. Your second query is a little more difficult to answer. Debt collection agencies can either act on behalf of the original creditor - or they can buy they debt to become the creditor. Sometimes it can be a little trickly to know how a debt has been assigned, so you may need to undertake a little homework. The general approach is to contact the people that are currently chasing you for payment and to work from there. If the debts are old it would certainly be worth exploring to see if all of the paperwork is present. It may be possible to seek a very low full & final settlement from a creditor if there are significant issues with the paperwork - for example if there isn't evidence of a signed credit agreement.

 

Very best wishes,

 

David @ National Debtline

[BRIGADIER2JCS]

Have you checked the CRA files for these debts, these should reveal the " progress and conduct " of the accounts from the original creditors entry through to the current " owner". If the debt has been sold to a debt purchaser the OCs entry will be marked "satisfied". The new owners entry must show the same balance OS and the same default date.