Cabot f&f settlement

A question about : Cabot f&f settlement

Hi, my partner has just has a letter from cabot offering her the option to settle a Ј4200 debt (credit card) for Ј1500. It asks her to ring if she wants to take up the offer, we know she is better writting to them but also wondering if they would reduce it further as we can get a sum of money together but not the full amount and would only be willing to do it for full and final settlement.

Many thanks, Chris

Best answers:

• Hi Cbrookes.
  Yes, I agree. Writing to them would be better.
  Your wondering is absolutely right, you can reduce it further.
  The Ј1500 in this case will be an initially agreed amount the call centre operative can accept. He/she will have a f&f range in mind but will not divulge it to you.
  Write to them, but if the money is coming from elsewhere (ie friends or family) do clearly state that. Also, thanks to Cabot being low on the money food chain. If you highlight once your priority outgoings are deducted from your income and have hardly anything left, that will help support your case.
  You never know, you may get as low as Ј1050 f&f.
• There are a few factors that will effect how low they will go:
  1) If the account is now owned by Cabot
  2) How old the account is (closer to 6 years old the lower they might accept)
  if you know how old the account is meaning how long since it was put into default. The closer to 6 years old the better the settlement.
  Also, if cabot own the debt and are not working for another DCA or original creditor.
  if it is 4-5 years old and Cabot own the account I would offer 25% to start with saying a family member has offered you the money to pay off this debt on condition that it is F&F settlement, account marked as settled and outstanding balance returned to zero. You must get it in writing that it is F&F, account marked as settled and outstanding balance set to zero. before you part with any money. but give it a go!!
  I have settled 4 debts for between 25-30% outstanding balance some will bite your hand off others will drag their feet but stick to your guns and play the waiting game.
• Hi, many thanks for both replies, they have both been very helpful. If the first default is not 6 years it is very close and also the debt is owned by Cabot now.
  Just another question, when we write to them is it worth letting them know that she is a few months pregnant and will be going on maternity shortly so with another mouth to feed funds will be even tighter or not mention it?
  Once again many thanks to everyone that makes this such a great forum.
• Yes, I would.
  If the lender is considering rejecting the f&f and attempting to negotiate a repayment plan instead.
  They like to review finances on a 3-6 monthly basis.
  Maternity leave will certainly reduce your income, increase the outgoings and completely change your financial priorities.
  I completely agree with Awayinchina. If the account is a few years old, they will be keen to settle the account. Especially if they're offering to reduce the settlement to way below 50%. They wouldn't do that unless the account was running for some time.
  In my experience (used to work for a money lender)
  Creditors like it if you are:
  1) open and honest to your situation.
  2) propose a solution that's agreeable for everyone.
  3) regularly keep in touch.
• Thanks, will give it a go and report what happens!