Hardship debt query

[j4mes]

Afternoon ladies and gents,

This pertains to some sizeable debts my (now) ex- partner has.

She was ticking along quite well but a while back she ended up going sick from work. This caused short term financial issues and sadly, they snowballed drastically over a period of 18months/ 2years. She didn't talk to me about it, even though I've been through financial difficulties including defaults myself. She said at one point, she was paying £500 a month servicing debts including water rates which I knew nothing about.

Anyway, fast forward to the present. As it stands, she currently owes £11000, including quite annoyingly, a CCJ that is 6 weeks old. If I'd been aware, I would have paid it for her to avoid a CCJ but it's 2 weeks past the deadline now for that.

So, the CCJ is £1500 with Lowells from Very, £5400 to Moorcroft for a unsecured loan, £1000 to Cabot for credit card, £360 to Moorcroft for credit card, £650 to Currys (not with DCA), £950 to credit card (Not with DCA), £25 default (I know....) to Moorcroft from QVC, £250 to 3-uk (includes disconnection fee of £200+) and one more active credit card she uses.

So, I want to help her. But the issue now is, I've moved out leaving her responsible for all of the bills which doesn't help matters. Her wage is around £1000 a month.

So, can anyone help me draft a letter to the DCA's please. She's had £20 a month accepted for the CCJ but if there was a chance that they and the other DCA would accept a significantly lower offer to full and final settle, I was thinking an offer of 25% to full and final settle, due to her low income, high outgoings and the fact she's by herself now. Is this possible?

The active credit card I could put onto mine as I can do 0% transfer, rather than her current 25- 35% interest (I'm not sure of the exact figure).

Basically, the letter I was drafting starts off explaining her financial situation, listing all of her debts and stating that I am willing to settle on her behalf now for a reduced one- off lump settlement, otherwise it will be a token offer of £1 a month. And asking them to contact me directly to discuss, and her authorising me as her representative.

Thanks

[j4mes]

This is the letter I’ve knocked up to the DCAs to try and negotiate with them,

To whom it may concern,
I write to you in reference to the account XXXXXXXXX, in the name of Teresa May (fake name). I understand the account with you has a balance of £X.XX, and has been defaulted.

I write in the hope of reaching a mutually acceptable agreement to resolve the account. Since the account was opened, I had a period of sickness from work where I was not paid as I wasn’t entitled to sick pay at that time. This meant I was left short on my wages for that month as a result. This meant I missed payments for various debts, which still needed paid the next month, where money was still short due to the higher repayments needed to bring accounts back up to date. This meant, again, there was a shortfall in wages to cover outgoings sufficiently. This pattern continued and ended up snowballing from what should have been a short term, minor issue into the one we find ourselves in.

I am in a fairly serious financial position, with a number of defaults and a CCJ recorded against me. My total debt owed exceeds my annual wage. And this is further worsened as I have recently split from my long term partner, who has now left the property, leaving me responsible for all of the bills at the property, and stretching my already quite stretched finances further.

As a result, I am hoping to reach an agreement with you regarding the debt owed. I have listed below all of the debts I have, and the most recent balance they show. As you can see it is substantial. Personally, I would only be able to offer a token payment per month towards the debt meaning it would be years and years to clear. However, my ex-partner has offered to try and help and has some funds available immediately he would be able to offer as a FULL AND FINAL settlement on the account. However, it is only 25% of my total debt owed. So for your debt of £X.XX, I could offer a full and final settlement to clear the account of £X.XX, paid within the next 14days. He is only willing to do so if it settles the account in full. Otherwise, it will be just a token offer per month I can afford to pay.

I hope we can come to a suitable resolution to this situation.

YOURS HOPEFULLY

XXXXXXXXXXXXXXX


LIST OF ACCOUNTS AND BALANCES

[j4mes]

Anyone?

[Kati]

Amethyst ??

[j4mes]

Bumping this up so I can try and get it resolved asap

[Amethyst]

Hiya xxx Just having a read xx Apologies for missing you before.

[Amethyst]

You seem to have your head screwed on with this. They are likely to respond wanting her IE sheet and confirmation the money you are proposing to give her will not require repayment.

These are all relatively recent debts ? so it would be a long time of fire fighting before anything goes statute barred ( 6 years ).

She wants confirmation in writing before any payment is made.

We are not debt advisors - so she may well be better speaking to National Debtline or to Stepchange regarding any action she considers taking.

However, my ex-partner has offered to help with an amount of money to use to settle outstanding debts. The money will be a gift and I will not be required to repay him. Once calculated pro-rata between my creditors I am able to offer £xxx in full and final settlement on this account which can be paid within the next 14 days. He is only willing to do so if it settles the account as full and final settlement and I require your confirmation of this in writing before payment can be made. I am making the same offer pro-rata to all of my creditors The alternative is that I organise a Debt Management Plan for a monthly amount from my income which is likely only to be a token amount.

You might be best sending her full IE sheet with the letter rather than just listing the debts, but of course that's up to you. The creditors where the debt has been sold on to a DCA are likely to be easier to settle than others.

Sorry I can't be of more help, but as I say, I'm not a debt adviser.

Once you've had responses back, any negative ones it may be worth sending a CCA request to them next, sometimes this encourages them to accept an offer rather than fart about getting hold of the documents.

[j4mes]

Hi no it’s fine. I did re-draft the letter to include income and expenditure being sent with it, to speed final responses up. But yes all defaults are less than 12months old, hence I’d like to resolve them rather than let them stew. One CCJ is bad enough. I have written the offer to include a few terms like; the default shows “settled”, balance to zero, default date and balance omitted from credit file, but based on the fact that it’s my offer, or pretty much £1 a month over however long, it’ll hopefully be enough to halt any thoughts of further action and it’s an account settled on their books. i was considering CCA “prove it” for all but it’s possible it might well just antagonise them when followed by a settlement offer.

I had a good reaction from Barclays with my own issues and they deleted £900 of a £1500 balance when I had a £500 limit, so I could bring the account into line. 2 years later, it’s a £11500 limit with them so it is possible if you’re careful of how you come across.

I’m hopeful I can persuade them based on the circumstances and the fact a lot of charges have been added onto the accounts.

[j4mes]

Would the CCJ entertain a settlement?