Full and final settlement offers

[aston2789]

Hi all,
This is my first post here although I have used other sites for advice in the past.
I currently owe a substantial amount due to credit card debts all of which went through the default process and subsequently the debts got sold on/assigned to various organisations like Restons, Arrow Global, Cabot and Lowell financial.
I currently have repayment plans with each of these and these plans have been running for 8 years or so. I make agreed monthly token payments out of what I have left.
I am single and am 69 years of age and have an interest only mortgage which has 10 years left to run. I don't have any means of paying off the mortgage without selling my house and barring any miracles that won't change in 10 years time. I have decided to sell now while I am in good health and move to Spain where rented accommodation is very reasonable compared to the UK. I could live quite comfortably on what I have coming in by way of state pension and works pension.
I am not one to shirk my responsibilities but if I were to repay my credit card debts off in full then I would have very little left as a "rainy day fund" to cover emergencies and eventually my funeral expenses. I am aware that my debts were bought at a knock down rate and indeed a couple of the "creditors" have recently approached me with settlement proposals. One wants 30% of what is owed and the other is looking for 60%. I've not had any approaches from the others but no doubt they would be willing to follow suit.
My brother has said he is able to help me out to settle some of these debts and I was wondering what would be the best way to sort this? Obviously I don't want to put them on notice that I am selling as they would want the lot or indeed apply for charging orders. I know it's a long way off but would it be better to wait until the sale goes through and then start negotiating by picking them off one by one?
My brother currently has enough to pay off the one that wants 30% and if we could get the one that wants 60% down to 30% as well then he could meet that too. This would get rid of a sizeable chunk of what's owing. I could sort this now and then negotiate the rest out of the proceeds of sale.
I just want this monkey off my back and live out the rest of my life without the stress of being in so much debt and worrying about what their next move might be.

[Joanna Connolly Solicitors]

Hello

I see you have a plan (moving to Spain) and now want to take steps to make it happen so you will be free of your debts for the next phase of your life.

In my experience negotiation is best carried out from a position of strength. My suggestion would be to get an opinion on which of your debts are enforceable and which aren't so you can make an informed decision on your next step.

One test is to send a s 77 - 79 CCA Request to the current debt owner to see if they can comply within the statutory time-frame. If they can't or don't comply the debt becomes unenforceable until or unless they do.

Once you've got that analysis under your belt you can decide how best to manage the situation.

I can't give debt advice but why not look at your options from all angles.

For example, have you considered whether renting out your house in the UK might provide enough funds for you to rent another in Spain. If you didn't enjoy Spain then you would have an exit strategy because you could return home. You'd need to look at the tax implications because of your pensions etc. but it might be something to think about.

Someone on the forum will help you list all the debts using one post for each one (but on the same thread) and then bespoke help can be offered since no two debts are the same and no two debt purchasers behave in the same way.

I certainly wouldn't be worrying about the cost of your funeral expenses yet! We are of the same vintage and that thought hasn't even crossed my mind.

I look forward to helping you.

Di

[nightwatch]

Helloaston, welcome toAAD,

I also hope to be moving to Spain soon, saying that, we were going a few years back, but life got in the way,

You say you have repayment plans with some DCA's for these debts, are you manageing the repayments yourself ? or is it through a company (stepchange ect)

As Di has suggested, why not list all your debts either on this thread or start another in the Unenforceable diarys section, then send s77-79 CCA request to the people that you are paying, then see what comes back and we can see what options you have,
Whatever you decide could I ask that you do it in the following way,

Original Lender
Credit card/ loan/
Date account opened
Aprox balance
is account defaulted(if so what date)
Who is chasing (DCA)

make a seperate post for each one on the same thread,
each time you send or receive letters you then just need to edit each post save the edit then hit "quote" and ask a question or just state UPDATE, that way we can get back to you with any help you may need

Please feel free to have a look at any of the diarys or grab a coffe and sandwich and read mine, https://all-about-debt.co.uk/forum/d...-diary-of-debt

I hope to help you retire to Spain quicker than me NW

[aston2789]

Thanks for the replies.
Di,
I was told renting my home was a non starter by someone at CAB years ago. Had toyed with idea but at the end of 10 years the mortgage is up and house would have to be sold. I couldn't convert to repayment mortgage as have insufficient income. Also if I were to sell if I'm still in Spain then I would be liable to Spanish CGT at 21%!!
I appreciate the advice re CCA request but don't want to stir the pot while my house sale is going through. Last thing I want is for them to get wind of it and trying to go for a charging order. Presumably that would need a court application. I have kept my head down for the last 8 years with token payments as was worried in case I ended up losing my house.
I just want a peaceful outcome to this. Obviously if they do get shirty I would go down the CCA route.
Nightwatch,
Thanks and it took me a while to read through your diary.
Yes I am managing payments myself. Have had help from CAB when I started off as I was in receipt of pension credit so only offered them £1 a month. It was a battle to get them to agree and then when I got my state pension I lost the pension credit lever. Had to start over again with getting them to accept whatever was left as disposable income.
As explained above I really don't want to rock the boat as hoping sale to go through before Xmas.
Cabot have made me an offer on one of the accounts thus :- "You can use this offer to clear your account fully by paying it off in one installment (sic)" They took a formal assignment from Barclaycard so own the debt. Would I be in the clear if I took that offer as I don't want them chasing me for the rest or anyone else for that matter?
I have my heart set on Spain and need to do it this year before Brexit puts a spanner in the works. Hope you manage to follow your dream too.
Kind Regards

[nightwatch]

If that's the case just keep paying the low amount. Sell your house and vanish into the great vastness of Spain. I understand you have a feeling of I used it I must pay it back. But the company's that now own these debts paid penny's for them. The ones offering a discount often don't have any paperwork and hope people will just pay up
Cabot don't normally say you will clear the debt, just that they will mark your credit file as partially settled, I am guessing that the default has fallen of your credit file, so they can't put anything on there anyway.

As far as a charging order is involved it would take any court action longer to get to court than by Xmas.
they have to have all the correct paperwork then take you to court and then win.
Only if you don't pay what the court orders do they then get the chance to apply for a charging order.
I also doubt they would know if you were selling your house .

I would like you to retire to Spain with a good nest egg, not over pay anything to them

NW

[Still Waving]

Sage words NW.

[aston2789]

Thank you NW. You have put my mind at rest.
All of the defaults from the original creditors have disappeared from my credit report as far as I can see. I use the MoneySavingExpert one which has a link to Experian and I also use Noddle.
I had managed to get a credit card a while back which surprised me. Just thought I would see if I could get one as found it so difficult to try and hire a car when I wanted to go to Spain for a look around. This one gets paid off as I don't use it very often!!!
Fingers crossed that my sale goes through without a hitch

[nightwatch]

Fingers crossed indeed, let us know what happens, xx