Making an offer to debt collection agencies, anyone done it?

[GeetTallBird]

To cut a long story short, dh left in jan after saying he'd pay mortgage etc and didn't. I haven't been able to afford to pay anything off these since then and they've been passed on to collection agencies.
So I owe
Natwest £120,000 on mortgage
HSBC £1600 from an old joint account
Natwest overdraft £1600 from joint account
John Lewis c card £3000
M&S c card £3000
HSBC c card £1500.

Am now utterly f*cked financially, the letters are coming in thick and fast saying they will be calling at my house.

The only light at the end of the tunnel is that I sold our house for £140,000 and after paying solicitors fees of £1800 and £750 I should have a bit left over to pay creditors, however that's all the money I will ever have, as my inheritance was sunk into the house as deposit!! Dh says he wants £500 from the equity and I can have the rest.
I'm going to get the equity paid to my mum so there's nothing in my name.

So...I want up make the creditors an offer, where do I start??

[GeetTallBird]

Thank you hot pink weasel...
HSBC o/d is defaulted, went to metropolitan collections and now to d&g solicitors.
JLFS cc is defaulted and they have said that it's in collections, same as M&S, Natwest o/d has not been repaid since Jan so I guess that's defaulted too, though they haven't chased it.
Last payment on HSBC creedit card was last month, so "only" late payment on that.
Just found out I owe southern electric £402 from the old house which they say they are going to take from my bank next weekend, I was repaying £100 a month off that, am screwed!!!

[SomeoneThatYouUsedToKnow]

Have you looked at MoneySavingExpert.com. There is lots of good info and stories of people who have been in your situation. (obviously lots of good advice here too).

Good luck.

[InvisibleHotPinkWeasel]

You'll have to treat Southern Electric as a priority debt.

The defaulted debts will have charges etc on so you have room to negotiate.

The problem you have is that to clear all your debts you need them all to accept a 50% settlement.

As for the defaulted debts they cannot increase any more.

So your next priority is paying the full balance on the HSBC one. As you only missed one payment.


I'd then write to each creditor and send them a copy of your income and expenditure showing what you can pay each month, from your monthly income.

Then explain you have £10,000 left from your house sale. And you are looking to clear some of your creditors. But you are only utilising it for payment in full. Offer each one a sum of 35% of the balance as a full and final. Hopefully they will then credit check, assume the remaining equity was split between you and ex > hopefully they will then try and push you to pay more, and settle on around 50%.

Remember though it will show as a settlement on your credit file, so can hamper further lending.

If you are worried about your credit file you need to look at long term psyment plans.

[GeetTallBird]

Thank you! I will get right onto that now.

[InvisibleHotPinkWeasel]

There's no guarantees of settlements with creditors, but bite the bullet and ask, once you've got replies you can start making plans for financial management

[squeakspieandchips]

Geet i have had a rummage through my paperwork (not pleasant!). Please do not feel there is no solution as i know from past experience it can become over whelming especially if you have never owed a penny

The good bit..... most of my creditors on accounts i have defaulted on have offered me up to 70% discount if i pay and settle the account within a designated date. They normally allow 30 days from the day the letter was sent.

I really would advise you to set up a payment plan with CCCS and offer the minimum you can get away with so that you can survive because you will receive offers at some point. Keep the money you have got (17500) separate so that when the offers come, you can settle immediately.

All of my debts are with big collection agencies which i could reel off now and they have all been very good. The only problems i have had are with Barclays, they wont offer any reduction unfortunately so i am stuck in the payment plan.

[AdoraBell]

Absolutely do not let the Ex off his share of the debts. I'd be willing to bet he doesn't want to go bankrupt either, which is why he's dumped all this on you. The joint bank accounts are his responsibility as well as yours. Don't allow those accounts to be closed until the debts are cleared.

Other posters are more up to date on dealing with these things, I'm abroad, but do not let the him get away with a penny and once this mess is cleared up contact the CSA re child maintenance.

Try to look after yourself

[GeetTallBird]

Thanks...he does pay CSA maintenance though, something to be grateful for!

[AdoraBell]

Glad he pays maintenance at least, good luck with the rest of it.

[NoPinkPlease]

CCCS don't negotiate on your behalf unless you're entering a debt management plan where you pay a monthly payment to your creditors.

For full and final settlements - one off payments to clear the debts and never hear of them again - you should see a CAB who can negotiate for you or call national debtline - their info on this is www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

You do have to be careful in this area but your plan is a good one - just make sure you ensure no further action against you is possible. Good luck.

[uggmum]

It is unlikely that your creditors will accept 35% as full and final. Especially HSBC. You will be lucky if they accept 90%. Even if it's gone to metro, who are owned by HSBC.

A debt management plan may be your best option for now. Once you are paying your debts regularly your creditors may re- consider a full and final.

I recommend thatt you call cccs for advice. Cab are good but their waiting times are longer.

[GeetTallBird]

God, it gets much worse day by day.

Don't know what to do...Natwest have now cancelled my current account card, can't get cash out, can't get food, can't pay my phone bill, or my fcking rent, I'm utterly screwed and they say there's nothing they can do until the joint acc we had is cleared, funds from equity aren't cleared yet, can't get emergency cash from a Natwest machine tomorrow when i get paid because I "don't have a valid card" I'm utterly fcked

I can't go or get any lower

[uggmum]

Open a 'basic bank account' at a different bank. One where you do not have any debts. You will get a card and the facility to have direct debits ( no overdraft).

The major high street banks offer this type of account. Nat west are unlikely to offer you a full banking relationship if you have unpaid debt on another account.

[AdoraBell]

For the short term, Do you live close enough to your mum to write a cheque and she gets some cash for you? or a friend, other rellie?

[InvisibleHotPinkWeasel]

What Nateest have done is normal. But you have to go up a branch, they know fine will the equity from the house sale will be coming into your account as its cleared the mortgage.

What they intend to do is take all you money to close the OD, get the OD closed and a payment in place pronto until the rest of the equity comes in.

In the mean time open a basic account with a cash only card and have your money go into that.

You can also try to get them to return your benefits. They have to leave you money to live on.

[JakeBullet]

Actually what NatWest have done is horrific.....they HAVE to leave you money t live on. They KNOW this and are being heavy handed to someone in a really horrible situation.

OP I would file all future DCA letters under "B" for "Bin" and do just that. Don't acknowledge them, they are highly unlikely to send anyone round. If they do the most they can do is ask to speak to you, you don't have to let them in at all.

Wait 6 years and it will all drop off the end of your credit file.

In the meantime they will write increasingly desperate letters until they get fed up and sell the debt on, been there and done it. Not proud of it but like you it was a desperate time in my life. After what NatWest have just done to you the most they deserve is all letters returned marked RTS. Don't give the fe kerfs another penny.

[RedHelenB]

DON'T IGNORE it. 6 years is a long time to be hiding plus if they know there is equity they will make you bankrupt, Follow the advice you have been given, personally I would try the full & final settlement option - companies do accept a third paid off as a bird in the hand and all that.

[InvisibleHotPinkWeasel]

Yes what Znatwest have done is horrific. All banks do it with internal debt debts and then shrug their shoulders because it's "allowed"

Op - you are going through a terrible time and want to move on. Go to a local branch, get them to see you as an emergency. They will do more than someone on the phone.

Don't ignore the debts, they don't magically go away after 6 years under statute bar, and you will be chased for the next 6 years as they change companies.

Stick with your first plan snd find out who will settle reasonably.

Also what is your arrangemt with ex? Are the debts all in your name or are some joint? Do you want to clear all the joint ones or just settle your share?

[JakeBullet]

Yeah...bad advice from me there OP, sorry, was just so cross on your behalf.

Have read through the thread and there is excellent advice here from people who know about these things.

Can also echo the CCCS people once the mortgage aspects are dealt with. Another one is PayPlan.
Both are free and won't take a percentage off the repayments to creditors.

[GeetTallBird]

Am going to bank this morning, my working tax credit and wage and chd maintenance payments got paid in today, I am utterly terrified they'll take it. But with a "cancelled" card I don't know HOW I can withdraw money I need for is to live on & pay my rent! I have all my ID with me, I am going to try to stand my ground with them.
You're right, they DO know there is money coming to pay the overdraft I just think it's terrifying, all this.

[AdoraBell]

Do you have an account that isn't affected, any old savings accounts or a different bank? If so get your salary and everything else paid into that, with an arrangement -if possible- to pay X amount into teh Natwest account each month, or open a basic account as suggested by someone up thread. Let us know how you get on this morning with them. Good luck.

[GeetTallBird]

I went to the bank, they claimed there was no manager to see me, I said I'd wait for a cashier to be free (she was hiding in back office!!!) and I waited 33 minutes!! Then I went back to the desk, I was polite (but I'm afraid I shouted a bit) and basically said I need all the money out of my account, took the lot! She gave it me! I was so surprised I cried with relief. Went to lloyds bank & opened account with a very sympathetic lady who notedy situation & said they would help.
They even offered me an overdraft (didn't take it!)
So now....I have money!! :)

[AdoraBell]

Well done, I'm glad Lloyds were so helpful. Now I'd suggest writing to the CB CSA and tax credit offices with the new bank details. It may take them longer to change than your employer, but in terms of finance this could be a new start for you. Something not associated with the old problems once the debts are cleared.

[GeetTallBird]

I'm on it tomorrow! :)

[AdoraBell]

Good