Settlements - Loan Vs Credit Cards

[worldtour]

Hello Ladies and Gents,


Do Creditors generally accept lower % FF for Credit Cards compared to Loans/Overdrafts?

If so, what % do they normally accept for Loan/Overdrafts?

I have settled CC ranging from 25% - 34%, Got 2 more (loan & overdraft) to go then I will provide full breakdown as it may help others.

[Never-In-Doubt]

Re: Settlements - Loan Vs Credit Cards

Its always best to start offers relatively low, as a DCA buys the debt, relatively low!

25-34% is rather high, I aim for 10% at most, based on most DCA's paying 12p in the £1 for bad debts (think lowells etc)....

To get any chance of successful offers you need the account to be defaulted or at least sold to a DCA - the lender won't haggle, obviously - ergo it's best to ignore them for a few months and then go in with an offer, and keep pushing - ignore some more - offer again - ignore some more etc etc....

That seems to work quite well, ie lead the creditor to believe they'll get fook-all unless they take the offer on the table...

Be interested to hear your adventures though

[worldtour]

Re: Settlements - Loan Vs Credit Cards

Hi Niddy,


Been a while (you helped my with some of these through MSE)

Couple were/are unenforceable. I decided to go down the settlement route even though they have all defaulted me (I will give reasons why once I have completed all settlements).

The 2 outstanding accounts; one is managed by Robinson Way other gone to solicitors.

Robinson Way has a unenforceable CC (managed) they want 75% or will send in the Debt Collector to the door -lol, I told them that's fine.
Contacted original bank who told me to deal with RW but did log on the systems that they are not taking income/expenditure etc.
As its a small balance (relatively) I'm happy to pay around the 25% even though its unenforceable.

The other is a loan enforceable (with solicitors), do settlements offers for loan or even overdrafts tend to be higher than CC?


Ps. All my settlements were either done with in-house DCA or DCA that managed the debt.

[worldtour]

Re: Settlements - Loan Vs Credit Cards

Also,

How long are debts usually with DCA until they are sent back to bank?

[Never-In-Doubt]

Re: Settlements - Loan Vs Credit Cards

Also,

How long are debts usually with DCA until they are sent back to bank?

Until you settle or dispute it that much they've had enough. It also depends on whether they partially assigned the debt or fully assigned it. The latter means that dca owns it and can resell to another dca or back to the bank.

The former just collect on behalf of the creditor.