Author Topic: How do I go about making a settlement offer?  (Read 4216 times)

bilbo

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How do I go about making a settlement offer?
« on: Jun 19, 2007, 10:55:40 PM »
Hi, I've got an outstanding debt of around £5000 with a debt collection agency. I'm unemployed so only pay a minimal amount each month. But I've been given a gift of £2000 from an elderly relative of mine. How would I go about offering that as a settlement for the debt? Are they likely to accept it?

Chris

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Re: How do I go about making a settlement offer?
« Reply #1 on: Jun 20, 2007, 01:23:32 AM »
Hi Bilbo, welcome to the forum.

Do everything in writing, not over the phone. You should start by writing a letter to the creditor confirming that you are unable to pay the full debt because you are out of work etc, but you have raised £2000 which you can offer as an ex-gratia payment in full and final settlement of the account. And if accepted you are to be released of all further liability. Also request that any credit reference entries are to be marked 'satisfied in full'.

If they accept the offer, then make the payment through a third party such as a friend, as this makes the offer more legally binding. Don't send any money until they formally accept your offer in writing. Keep all correspondance.