Ulster Bank historic loan settlement

[Thesearcher]

Hello,
I'm helping a family member with a historic loan and credit card that had been crystallised together. It's about 7k and they've been paying off €10 a month for a number of years and they are not in a position to pay more. They recently received a letter saying the loan will be transferred out of Ulster Bank to a third party but have also indicated they may accept a settlement offer. Has anyone been in this position or have an idea of what settlement offer they would take. Or does anyone know what percentage Pepper buy loans at?
Thanks

 

[jpd]

You would need to say what is interest rate on the loan and what is the term left?

 

[Thesearcher]

It was meant to be paid off in 2014 but was crystallised a few years earlier in the crash. There is no term left or interest rate. Just the amount left to be paid off with an agreement to pay €10 per month. They can go on paying that but it would seem healthier to settle and move on.

 

[Sunny]

It was meant to be paid off in 2014 but was crystallised a few years earlier in the crash. There is no term left or interest rate. Just the amount left to be paid off with an agreement to pay €10 per month. They can go on paying that but it would seem healthier to settle and move on.

Well if they can still only pay €10 a month, not sure how they have funds to settle. Is there a written agreement with Ulster to pay €10 per month. If there is, that loan is going nowhere and Ulster are chancing their arm to try and get it off their books. I can guarantee you that they have already written off that loan. Throw in a settlement figure of 500 euro and see where you get. Or else just keep paying the 10 a month. They will get their money in 58 years or whatever...

 

[Thesearcher]

Well if they can still only pay €10 a month, not sure how they have funds to settle. Is there a written agreement with Ulster to pay €10 per month. If there is, that loan is going nowhere and Ulster are chancing their arm to try and get it off their books. I can guarantee you that they have already written off that loan. Throw in a settlement figure of 500 euro and see where you get. Or else just keep paying the 10 a month. They will get their money in 58 years or whatever...

Thanks Sunny that's very helpful. I've offered to help them with a settlement but I'd only go so far. I'm not sure it's a written agreement or not but both sides have adhered to it for 10 to 12 years - so I believe. The letter they sent says it's going to Pepper / Elmscott Property Finance. I'll tell them to offer that amount.

 

[RedOnion]

Is there a written agreement with Ulster to pay €10 per month. If there is, that loan is going nowhere and Ulster are chancing their arm to try and get it off their books. I can guarantee you that they have already written off that loan.

They're perfectly entitled to sell it. Yes, no doubt they've written it off from an accounting point of view, but legally they can sell the debt.

Edit: sorry, I misread and thought he was paying 10 euro per week, not month. Yes, if the agreement is in writing, it's worth very little but can be sold.

It's about 7k and they've been paying off €10 a month for a number of years and they are not in a position to pay more.

These debts sell for about 10 to 20 cent in the euro. Have they been receiving statements?

 

[Sunny]

They're perfectly entitled to sell it. Yes, no doubt they've written it off from an accounting point of view, but legally they can sell the debt.

Edit: sorry, I misread and thought he was paying 10 euro per week, not month. Yes, if the agreement is in writing, it's worth very little but can be sold.


These debts sell for about 10 to 20 cent in the euro. Have they been receiving statements?

I agree. Absolutely nothing to stop them selling it. Never said otherwise. But if there is an agreement to pay 10 eur a month for the next 58 years, nobody is buying that. Its practically worthless. I have heard that Ulster Bank are basically left with the dregs and are really struggling to get rid of loans. They can sell it for next to nothing but surely just as easy to let the person settle for next to nothing. If they want to close down in a few years time, a 58 year long 7k loan isn't really worth the effort.
You do need to find out what agreement is in place though. Worst result would it being sold and your friend finding they are being harassed by debt collectors. Can't get blood out of stone but the stress isn't great.

 

[Thesearcher]

Thanks all for your replies. From what I can gather there's no formal agreement in place but it has been honoured for over a decade. True that they new buyers/ debt Collectors, could easily harass them and make their life difficult. They are going to make a formal offer to UB to settle based on the above suggestions. Thanks again for all your help