Will Bank settle for less?

[Omega]

A member of my family has been made redundant and has an outstanding loan of approx. €3k (which includes future interest payments) with HFC bank. This bank has recently closed its Irish operation.
I advised him to contact the bank and ask if they would settle for a smaller sum if he pays it all now - while he still has some of his redundancy lump sum left.
What is the likelihood of the bank settling - and what should he offer them?
Any opinions greatly appreciated! Many Thanks.....

 

[redbhoy]

As Mammy always says, If you dont ask you dont get .
Each situtation is different but Id say they'd jump at the chance of a reduced sum as there is always the chance that this loan may never be paid seeing as your relation is now out of work and the job prospects arent looking good for the unemployed for the next while.

 

[twofor1]

Any opinions greatly appreciated! Many Thanks.....

If they did agree to a lesser amount, I think this would then appear as ‘’A/c settled for less than the full amount’’ for the next 5 years on his ICB credit report.

Assuming he has a good record to date and will again want finance at a later date, a small saving to day might cost him dearly in the future.

Might be worth checking this with the lender, if they do agree to a lesser amount.

 

[redbhoy]

an outstanding loan of approx. €3k (which includes future interest payments) with HFC bank.

Just thinking there (dangerous I know), but if the loan is variable interest then there is no penalty for clearing it early and the amount will be less than the full €3K so should be a few hundred cheaper anyhow.