HALIFAX....Settlement Advice??greenspun.com : LUSENET : Repossession : One Thread
I've recently received notice from a collection agency following a repo several years ago. I've received a completion statement from them as requested, and all was done within time, a fair price obtained, and no seemingly undue costs, etc. They're saying the halifax will still consider an offer, but i don't have a clue how much to aim for. I dont have the money laying around, but just want to try and get this cleared up so i can just forget about it. The amount has always been shown as around £13000, but on the completion statement is exactly £2000 more?? Can anyone give me an idea on what sort of figure to offer?
-- Andy Fleck (email@example.com), December 09, 2002
Presumably you're talking about a shortfall left after repo. From other postings on this site it appears that most settlements fall between 5% and 10%, so I would start with 5%, but make sure they have justified the full amount of the shortfall first (see the 'Do's and Don'ts section on the Home Repo site). Also make sure when you get a settlement it covers the whole amount,that is to say it includes any monies paid out by an insurance company under a MIG (if applicable), see my earlier posting entitled 're Settlements'. I also believe you can get a 'Certicate of Satisfaction' as proof (not quite sure if that's the right name though). Hope this helps.
-- M Amos (firstname.lastname@example.org), December 11, 2002.
First of all, when was the repossession and when was you first contacted about it? If it was over six years ago, and you have not been contacted before, you may be able to tell the Halifax to bugger off (see notes about Council of Mortgage Lenders and time limits).
Two, did you have a MIG and was you told that you were not covered by it when you handed over the cash? Or was you told the insurance covered you in the event of repossession? 2b. Did the Halifax claim against the MIG?
3. Don't take the Halifax's completion statement as gospel - From my experience with the Halifax, their completion statement does not show costs separately, so how can you tell if they are fair? Ask to see invoices and bank statements to substantiate their costs. Do *YOU* think they look reasonable - really?
4. Who told you the price they sold your property for was fair? How much were similar properties sold for at the time.
5. If the figure has always been consistent, but the completion statement is 2 grand more, why have you not questioned it?
I understand that you just want this cleared up, but if you don't question the Halifax and you agree with their figures, why should they take a settlement figure lower than the shortfall they have already claimed?
To give you an idea, the Halifax said I owed them £30K from a voluntary repo in 1995. I had already paid them £640 in monthly instalments "to get them off my back", but had always refuted their claim and would not accept any liability for it. When I started to ask questions and ask for proof, they settled for 500 quid in a lump sum, but that's because they were not willing to prove they were entitled to what they were asking from me.
I'm sorry if I sound a bit terse, but the Halifax are NOT going to just turn around and say "OK we made it up, give us 50 quid and let's call it a day". If you don't question what they are asking for, and you offer a settlement, you are in effect accepting the shortfall to be true. When they say they are willing to accept an offer, expect it to be £10K in a lump sum or £14K if you want to pay by instalments.
If you do offer a settlement and it is accepted, make sure you get in writing from the Halifax that it is full and final and also covers the Insurance company (if there is one involved), and that you will not be contacted again by any means at all, or by any other persons in relation to this matter.
-- One Angry Mother (email@example.com), December 11, 2002.