# lump sum settlement offer to Cabot Financial declined?



## Goodman (1 Mar 2016)

Cabot Financial recently bought my Avant Card debt of €7,100. I was offered a family loan of €3,000 which I subsequently offered to Cabot, they declined. I received a letter from Cabot today encouraging me to make a better offer. I called them and increased the offer by €300 at which point I was told they couldn't settle for anything less than 20%. A couple of months ago I settled an account they were managing on behalf of Bank of Ireland for 40%. What gives??


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## Bronte (1 Mar 2016)

Do you mean they will accept 80%.  Letting you off 20%. 

You cannot compare your case to a previously settled case as not all situations are the same.  Where they think there is money they will be harder to deal with.  You've now come up with 3K and then added another 300€ so they might think there will be more.


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## Branz (1 Mar 2016)

The old business maxim: He who negotiates first: loses. 

You have paid your full 3k card and then some... of course they will look for more.

What interest rate is on the debt?

Whats the worst that can happen here?


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## Goodman (1 Mar 2016)

Yes they will accept 80% but I can't go any higher than what was already offered, they know my circumstances, as a payment plan was worked out through MABS, and nothing has changed. 
Thank you for replying. 


Bronte said:


> Do you mean they will accept 80%.  Letting you off 20%.
> 
> You cannot compare your case to a previously settled case as not all situations are the same.  Where they think there is money they will be harder to deal with.  You've now come up with 3K and then added another 300€ so they might think there will be more.


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## Goodman (1 Mar 2016)

Branz said:


> The old business maxim: He who negotiates first: loses.
> 
> You have paid your full 3k card and then some... of course they will look for more.
> 
> ...



The debt has been kicking around for over six years, I defaulted so there's no interest or penalties, I'd like to get rid of it if a reasonable settlement can be arrived at.
Thank for replying


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## 44brendan (1 Mar 2016)

Very little info in the post. As per previous response there is no unilateral acceptance figure from any bank or debt agency. All will depend on their assessment of potential recovery. I.e. If you have been paying nothing and an assessment of your finances would indicate minimal capacity to meet regular monthly payments they are likely to accept the 3k offer. Obviously they will not jump at the offer immediately but will try to drive you up. Best option is to send them on a financial summary which should reflect your poor finances. Pay them nothing in the interim and advise that the offer is the best available and you cannot increase it. Also state that loan to you is only available on the basis that it is used for a full settlement with Cabot and will be withdrawn if offer is not accepted by them. Give them a time deadline to revert.
This strategy will only be successful if your financial position is relatively poor.


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## Goodman (1 Mar 2016)

44brendan said:


> Very little info in the post. As per previous response there is no unilateral acceptance figure from any bank or debt agency. All will depend on their assessment of potential recovery. I.e. If you have been paying nothing and an assessment of your finances would indicate minimal capacity to meet regular monthly payments they are likely to accept the 3k offer. Obviously they will not jump at the offer immediately but will try to drive you up. Best option is to send them on a financial summary which should reflect your poor finances. Pay them nothing in the interim and advise that the offer is the best available and you cannot increase it. Also state that loan to you is only available on the basis that it is used for a full settlement with Cabot and will be withdrawn if offer is not accepted by them. Give them a time deadline to revert.
> This strategy will only be successful if your financial position is relatively poor.


Most helpful, I will go back to MABS an update my statement of financial means


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## Bronte (2 Mar 2016)

Goodman said:


> The debt has been kicking around for over six years, I defaulted so there's no interest or penalties, I'd like to get rid of it if a reasonable settlement can be arrived at.
> Thank for replying



So it seems you have other debt?  I see no logic if that is the case in settling with Cabot when you're paying no interest or penalties.  This 3K you are getting from relatives, will you have to pay that back to them, is it really a good idea to borrow from family, especially if you have an arrangement with Cabot already, or has your circumstances changed and you now can no longer afford even this agreed monthly amount.


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## Bronte (2 Mar 2016)

wolfe3u said:


> I think they will accept the 80%!



They may accept a lot less if his circumstances have deteriorated.


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## Daffodils (2 Mar 2016)

My understanding is that once a debt is sold it is written off by the lender and this will be shown in your credit history with the icb. Cabot can't change this record. If you are paying off in the hope of repairing your credit history you would need to get avant to change it not Cabot.


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## Gerry Canning (2 Mar 2016)

Goodman,
1. Go online to Irish Credit Bureau (ICB) to see what your credit rating is at.
2. Always good to go for settlement and get on with your life.
3. 80% on old debt seems generous, offer what you can afford ie no more or no less, because no point in having relations hanging for their money.
Also it may well be that before debt was (stopped) you were hit with penal interest charges. Ask for a FULL statement.
4. Don,t rush this.


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## Goodman (5 Mar 2016)

Daffodils said:


> My understanding is that once a debt is sold it is written off by the lender and this will be shown in your credit history with the icb. Cabot can't change this record. If you are paying off in the hope of repairing your credit history you would need to get avant to change it not Cabot.


Thank you for that


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## Goodman (5 Mar 2016)

Gerry Canning said:


> Goodman,
> 1. Go online to Irish Credit Bureau (ICB) to see what your credit rating is at.
> 2. Always good to go for settlement and get on with your life.
> 3. 80% on old debt seems generous, offer what you can afford ie no more or no less, because no point in having relations hanging for their money.
> ...


Thank you, will do


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## cremeegg (5 Mar 2016)

Why would you borrow money from a family member to pay Cabot.

If they take you to court a judge will order you to pay based on your means, not your relatives.

Borrowing to pay Cabot is just throwing money away. Thats my opinion!!


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## Goodman (21 Mar 2016)

cremeegg said:


> Why would you borrow money from a family member to pay Cabot.
> 
> If they take you to court a judge will order you to pay based on your means, not your relatives.
> 
> Borrowing to pay Cabot is just throwing money away. Thats my opinion!!



I hear you, I had a pile of debt it was killing me psychologically, a relative offered to help get rid of it all if I could negotiate good settlements, everyone except cabot played ball and took what was offered. Now I'm just left with them


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