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 DAS Full and final settlement
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DASdude
Frequent Contributor

38 Posts

Posted - 15 October 2021 :  08:34:11  Show Profile  Reply with Quote
DAS - Early settlement

Hello folks,

Would you be able to advise me what the process is for settling a DAS early is
Also if I received some money from a relation but say enough to cover 3/4 of the remaining amount would most creditors accept this offer as a full and final settlement? What happens if one creditor refuses? Do you also know cases where creditors have all accepted a reduced amount or not?

Many thanks

DBHA21
Frequent Contributor

31 Posts

Posted - 15 October 2021 :  10:51:49  Show Profile  Reply with Quote
To end a DAS early you would usually be expected to pay the full balance of your debt back, as at the date it started.

There are no early repayment penalties or additional fees to pay, but it would be uncommon to see any additional debt forgiveness (that's not the purpose of a DAS).

Best course of action would be to contact your Money Advisor and discuss your options. They cannot compel you to make additional payments or surrender your lump sum, so there's nothing to lose.
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TDA (Debt Adviser)
Trust Deed Expert



13851 Posts

Posted - 15 October 2021 :  11:00:41  Show Profile  Reply with Quote
Hi DASdude,

How long has your debt arrangement scheme been running for?

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Kevin Mapstone
Trust Deed Expert



4029 Posts

Posted - 15 October 2021 :  11:15:12  Show Profile  Reply with Quote
Hi DASdude

I have been successful in arranging early settlement for a few DAS clients in recent times. The lump sum offer must be made to all creditors by your money adviser, ie they are all offered whatever pence in the pound is available as a final settlement of their debts, which they can agree to accept in return for writing off the remaining unpaid balance.

In my experience many creditors will accept this rather than choose to wait and collect a larger amount over several years. Some probably won't. If that happens then those that have accepted can be paid the agreed lump sum (must be done via your DAS payment distributor) and removed from the payment programme. The other creditors remain in the DAS and your monthly payments will be shared just between those instead, meaning they are repaid more quickly than they would have been otherwise.

Alternatively, if your DAS has been running for 12 years and more than 70% of the debt has been repaid then you have a right to request the remainder be written off under the regulations. Creditors can refuse, but any that don't reply within sufficient time are deemed to accept it and have to write off the remaining debt.

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DASdude
Frequent Contributor

38 Posts

Posted - 16 October 2021 :  00:26:19  Show Profile  Reply with Quote
Thanks for your responses. TDA it has been running for 3+ years. Kevin that's great to hear you have helped arrange early settlements for some of your DAS clients. May I ask in those instances was it roughly 75% or 50% of the debt remaining that an offer was accepted on? I appreciate this would vary as per creditor. In my case a significant amount of the creditors have sold on the debt to other debt collection agencies. My understanding from other forums is that they are more likely to accept a reduced offer if it has been sold on as they bought it cheap.
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TDA (Debt Adviser)
Trust Deed Expert



13851 Posts

Posted - 16 October 2021 :  13:12:22  Show Profile  Reply with Quote
Thanks DASdude.

I was asking the question with the twelve year criteria that Kevin mentioned in mind.

Have you asked your DAS adviser about whether they'd be prepared to make settlement offers to your creditors?

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DASdude
Frequent Contributor

38 Posts

Posted - 16 October 2021 :  14:22:02  Show Profile  Reply with Quote
Hi TDA, I thought that was why you were asking. I plan to approach my advisor shortly to ask this.
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TDA (Debt Adviser)
Trust Deed Expert



13851 Posts

Posted - 17 October 2021 :  18:02:12  Show Profile  Reply with Quote
Good luck with this DASdude.

It would be interesting to hear how you get on.

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Kevin Mapstone
Trust Deed Expert



4029 Posts

Posted - 18 October 2021 :  12:10:45  Show Profile  Reply with Quote
Hi DASdude.

I'd say the majority of creditors would look for more than 50% usually, most are somewhere between 70-85% in my experience. It also depends on your own personal circumstances and whether there are any particular reasons that might persuade them to accept a settlement (eg mental health issues etc)

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DASdude
Frequent Contributor

38 Posts

Posted - 18 October 2021 :  13:37:22  Show Profile  Reply with Quote
Thanks Kevin that's helpful to know.
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