SA Settling an Old Debt with Debt Collectors

[Cd1988]

Hi. I'm so happy I found this site.
I'm in the process of writing a debt settlement letter. Can you please give me any help with this? I should probably mention this debt is over 5 years old and for $2800. My financial position is changing over the next few weeks, not for the better, and I need it paid off asap. I can no longer afford any ongoing payments.

DEBT COLLECTION: LETTER OF OFFER TO SETTLE (1)
22nd January, 2015
Company
Dear Sir/Madam
Without prejudice
Account Reference
My details
I refer to your email dated 25th November, 2014 requesting the start of a payment plan. ('the Alleged Debt').
At this time my second child was only a newborn and my Centrelink benefits were not updated yet, I was unable to come to an arrangement with you. Although, I have still in good faith been making regular payments of $50 per fortnight.
On the 29th of January, 2015 my boyfriend, (name associated), will be medically discharged from the Army and will no longer be recieving a salary from them. Only a small percentage from the Department of Veteran Affairs. Which is a disability military pension. He has supported me previously, but with the unfortunate events, is unable to do so now.
As my sole income is a Centrelink payment, I have no assets that may be seized through enforcement. As you may be aware, my income is inalienable pursuant to s60 (1) of the Social Security (Administration) Act 1999 (Cth).
I also have an income which is below the bankruptcy threshold and no assets that may be seized through enforcement.
To save the time and expense of pursuing this matter further i make the following offer.
Without admitting liability for the Alleged Debt, i offer to make a payment to you in full and final settlement of all claims you may have against me under, arising out of or in any way related to the Alleged Debt by way of:
• a lump sum payment of $1000 by February, 10th 2015.
I will be borrowing these funds from family and friends in order to settle my debts before I am in a worse financial position then what I'm in at this point in time, and therefore an unable to make any payments.
To accept the offer formally, please arrange for an authorised representative to sign and date a copy of this letter where indicated, and return it to me within 14 days at my abovementioned address.
Name of authorised representative:_____________________________________
Signature:_____________________________________
Date:_____________________________________
Yours sincerely
My name

 

[Sarah J]

Hi Cd1988,

This is a site for helping with legal questions. Unfortunately, we do not do proof-reading of legal letters or assist in drafting letters.

However, if you have a debt that is either disputed or you wish to enter into some sort of financial arrangement over due to financial hardship, depending on who the creditor is, you may be able to seek the help of an ombudsman. Is the creditor (not the debt collector, but the original provider) a service provider?

- If it is a telecommunications debt (phone, mobile, internet): contact the Telecommunications Industry Ombudsman
- If it relates to energy or water services: contact the Energy and Water Ombudsman SA

Know that at the end of the day, all a creditor really wants is to have the debt repaid. They are usually willing to negotiate with you and come to some sort of payment arrangement rather than spend money chasing after you and taking you to court. Therefore, here is some general advice for how to negotiate with them: be clear whether you admit the debt or you are disputing it; enter into negotiations in good faith; if you are not disputing the debt, show a willingness to pay the creditor; list your financial situation clearly; again, emphasise that you fully intend to pay this off but that you will need some lenience from the creditor to allow you some time and payment in instalments.

If you are still having trouble with the letter/negotiations, speak with your local legal community centre. Most centres have a financial advisor that can help you re-arrange your finances and work out a payment plan, they will also help you negotiate with the creditor or advise you as to what your options are

Best of luck with this.

 

[okanynameyouwishthen]

Hey cd1988,if that's a debt collection agency go for it I say.I would also add if they will not accept to give you written verification of the reasons why.If it's collectors your $2800 debt that they purchased from whom you originally owed could have been bought for as little as 5% outstanding....even less if bundled from a conglomerate type .Your offering them approx.35% (think) so doing the figures = they win,you win & the original mortgager wouldn't have on sold debt until insurances that cover these types of write offs ,losses had sorted them out.A % each financial year gets claimed so after 5 years in default I'd say they ok.
Disclaimer- I am obviously not condoning people being financially irresponsible & if you borrow you should repay.
It just gets my goat that computer generated letters especially ramping up in threats have no way of knowing when people are stuffed financially. Sure if proof existed on a person being delinquent towards their liabilities & p**sing $'s up a tree,big difference.
Good luck. Hope your fella is on the mend also .