Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

Byflorish
#462553 Hi,
I've got around £8k outstanding on a NatWest credit card, which was defaulted back in 2005. I've been making token payments ever since then. The account is still with NatWest and has never been passed to a DCA, and the default dropped off my credit file a while back.

My question is, has anyone on here had any experience negotiating full and final settlements with NatWest, and if so, how successful were you?

Thanks in advance.
User avatar
ByTalbotWoods
#462583 Hi florish

Hope you are keeping well

It is going to depend on how much you are repaying, and what the circumstances behind wanting to offer a F&F is.

For example, if you are paying a reasonable amount each month, and are in a reasonably safe job, and are in good health, and have plenty of working life left, then in reality they may accept an F&F but it will be at the higher end of the debt value.

Conversely, if you are retired, on minimum repayment, in ill health for ever having to miss payments because of this, then they would take a lower F&F.

But on the other side of the coin, we have seen them accept silly low offers, when they could of held on for more (sometimes a lot more), and refused others when there are major reasons for them to accept, and then lost a load!

Hand on heart the best way to find out is to offer then a low F&F and see what they counter with, then negotiate.

Couple of tips when negotiating, remember it is ALWAYS a friend or family member offing to pay this for you, hint there may be a little leeway, but not a lot, and it is only being offered for a short period. If they are not interest then the offer will be withdrawn, and you will have to keep on paying your agreed repayment. It is important they are made to understand that is is NOT you making this offer, or they could see this you being in the position to make a much larger repayment than normal!!

Final tip, and a huge one - ONLY IN WRITING

Tim
Byflorish
#462613 Hi Talbot Woods, Happy New Year to you and thanks for your reply.

Balance is just over £8k
I've been paying £5 per month since around 2005.
It's never been passed to Triton.
I receive a statement each month.
No interest has ever been added since it defaulted in 2005.

The reason for this thread was that I wrote to NatWest asking if they would accept a full and final which my daughter would have paid for me.
It was a small offer (20%) so wasn't surprised it was rejected.
However I was surprised that NatWest stated in their 'rejection' letter that they'd only accept the entire outstanding balance to settle the account.

Is this normal for NatWest, and the end of the matter, or do you think they may still negotiate?

Thanks
Bynomlas
#462623 Does seem rather unusual that they have done nothing for so long with such a low payment.

It depends, as ever, on assets, do you have any? If not I would reduce the payments down to £1 PM and tell them that is all you can now afford. They should then eventually pass it to a DCA who would be much more likely to do a deal. If you have assets I would just carry on as you are and not "rock the boat". Just my opinion.

Regards.
Byflorish
#462633 Hi Nomlas

I've absolutely no assets whatsoever.
Does seem a tad strange!
User avatar
ByTalbotWoods
#462683 Don't worry I've seen odder!

Yep this is very much a computer generated letter, and I bet not even the slightest of glances was made at it.

You can write to them again thanking for their time answering, and just emphasis that this is a final chance offer, hint you are about to have to drop your repayments, and ask them to get a manager to review this and for the manager to respond.

If the dont play ball, then maybe as nomlas has said time to play heard and force the matter to a DCA by dropping your repayment to £1 a month. (Also you know when they complain you can tell them they had had the chance!)

After a few months they will sell the debt onto a DCA who may be more willing to accept the F&F.

Tim
User avatar
ByTalbotWoods
#462693 Acually thinking of this a wee bit more.

Notify them that you ARE dropping the repayment to £1 a month, make sure the next payment is only £1 and when they gripe, then tell them they had had the chance!

That may well make them back down!

Tim
Byflorish
#462703 Thanks Tim
In their letter to me, just after the section where it states that they will only accept the entire o/s balance to settle the debt, it finishes by requesting me to continue paying the agreed £1 per month until the next review in 8 months.

As mentioned above I am paying the agreed amount of £5 per month, so it's definitely some sort of computerised template. The next 12 month review is due at the end of July/beginning of August.
Bynomlas
#462713 In that case I would most certainly drop it to £1 and even miss a few. They will soon accept a very low figure if you play hardball :lol:

Regards.
Bymom23
#471413 hi

I am in a similar situation with Natwest credit card. I have been paying £1 per month for over a year now. I owe £1700. I live aboard, am on benefits (due to ongoing medical issue) and cannot afford to pay more. Natwest defaulted me in 2009 over £32. I called (I should have written I know) last year to see if I could pay off a lump sum - my dad was giving me £1000 to clear it. The girl said min they would accept was 85%. I tried again last week by phone, as told that due to my age (?) and the size of the balance they wouldnt take anything less than full amount. I asked why when a girl had offered me 85% last year. the "lady" got snotty and said her colleague shouldnt have done that but clearly she had no option but to honour this agreement and stick to 85%. I explained I couldnt afford that. Her answer was basically tough!
User avatar
ByJaneClack
#471414 If you keep on making the £1 payment they are going to keep taking it. You are also keeping the debt alive by acknowledging it. You have of course told them you are on benefits etc but I do not quite understand what you mean by I live aboard. Do you live abroad or do you just pay board?

How likely is it you will be returning to work and ever be in a position to pay the debt off. Your age - does this mean you are in your 20s or what? Is this your only debt - there are many things involved here so if you could post a little more we could dig deeper. Or pm me and I can answer in strictest confidence!
Byflorish
#472579
TalbotWoods wrote:Acually thinking of this a wee bit more.

Notify them that you ARE dropping the repayment to £1 a month, make sure the next payment is only £1 and when they gripe, then tell them they had had the chance!

That may well make them back down!

Tim


Here's an update to this two year old thread.

In August 2014 at my annual review, Natwest advised that I should reduce my payments from £5pm to £1pm.
I then (thanks to my daughter) offered them just over 30% F&F which they again rejected and told me just to keep paying the £1pm which is what I've done since then.

I had another annual review in August 2015 and again they told me to continue paying the £1pm. This time I never suggested a F&F

Natwest know that I don't own any property or have any other assets. They also know that the only increase to my income will be when I qualify for the State Retirement a Pension in three years time.

I'd like to be rid of this debt, but so long as they are happy for me to continue to pay £1 every month without them hassling me, then I'm happy.

It does though seem a bit daft, in my opinion, that they rejected my daughters F&F offer of £2,500 whereas if I were to live for another 20 years, I'd only have paid them around £240 in that period!
Bysally1
#472582 Hi florish,
I agree it does seem crazy but I guess they are hoping you win the lottery or something!! Did you consider Jane's advice to your last post? If you are happy paying £1 pm that is fine but it does keep the debt alive so they could start hassling you for more any time. If this is your only debt then continuing as you are, paying £1 pm is a reasonable option even though you will never repay the debt this way, but if you have other debts as well, you may want to consider other options.
Byflorish
#472631 I received a letter today from Natwest stating that they have passed my account to Westcot for them to manage.
Bysally1
#472632 Hi florish,
Apologies for not replying immediately.
All the advice you have had in the past still stands. However, Westcot are more likely to be open to a full and final settlement than Nat West, so you may have another opportunity to make an offer. Although Westcot are only collectors for the debt, they can recommend acceptance to Nat West if they think the offer is reasonable.
May I suggest that once you have heard from Westcot that you sign a form of authority for your daughter and get her to ring them to ask if they would consider a full and final settlement?
I would not make a specific offer at this point, just find out if they would be open to a F&F settlement. Your daughter could point out the stress that having the debt is causing you etc etc and that she is prepared to help if they will accept and offer she can afford.
If Westcot say they are open to an offer she could then write and make the offer as a third party who is not liable for the debt - in other words she has nothing to lose if they say no, but they have everything to gain.
In my experience, nowadays it is unlikely that a creditor would accept less than 40% of the outstanding debt and this is where I would start, but there is nothing to stop you \ her trying for less at first. It is just possible that Westcot may start threatening court action, but the court would most likely give you time to pay. I hope you manage to negotiate your F&F settlement - perseverance usually wins the day!
Good Luck, let us know if you are successful.
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