Full and Final Settlement Letter

FieryBlondeScot · 5 October 2008 at 3:57PM

Am finally at the stage of F&F, partly as i am now unemployed. Have been with the CCCS since August 05. Is this the correct letter to send out ? i dont want to screw this up by leaving out something important! I also had the student loans co. in my DMP but as they have refused any negotiation stating it is Govt money, i have left them out of the calculations and it also gives each creditor more money back.
:beer:
Dear Sir/Madam
RE: ACCOUNT NO -**************

WITHOUT PREJUDICE

I write concerning the balance outstanding on the above account.
I am unable to continue to make payment on this account as I have become unemployed due to my contract at work ending (proof can be supplied).
However in order to assist me with this, my grandmother has offered me a lump sum of £1000 to settle my debts (proof can be supplied). I will divide this equally between my creditors.
As you can see from the table below I can pay Barclaycard £35.00 and I offer this amount in full and final settlement of this account.
This offer is made on the understanding that if accepted neither you nor any company associated will take any further action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.
I also request that if any offer is accepted you will mark any entry on any credit reference agency regarding this account as ‘satisfied in full’.
Payment can be made within fourteen days of receiving your written agreement to this offer.
I would also like you to note that since beginning my Debt Management Plan with CCCS in August 2005 that I have made consistent payments and also increased payments where possible on several occasions in order to repay my debts.
I look forward to hearing from you

**********

Table of offers worked out according to following full and final settlement offer formula provided by CCCS: Amount owed to creditor x lump sum available/total owed
Creditor
Calculation
Offer

MBNA
1118.91x1000/1937
577.65

Barclays 1
194.37x1000/1937
100.34

Barclays 2
179.29x1000/1937
92.56

Egg
379x1000/1937
195.66

Barclaycard
67.81x1000/1937
35.00

Total

£1001.21

Deep_In_Debt · 5 October 2008 at 4:26PM

Hi
I used a letter template from the National Debtline website. They also have info on how to work out what to offer.

Good luck with it.

FieryBlondeScot · 5 October 2008 at 4:36PM

Thanks, i have been reading through the board and am now wondering if i may have more chance of them accepting the offers if i let the accounts go to DCA's (scary as that is!) as they seem to accept better offers. i am just not sure! i cancelled the DMP 2 weeks ago and the paymetns are meant to go to the creditors on the 5th of each month i think so i have just missed one payment - do they automatically send it to DCA's?

GeorgeUK · 5 October 2008 at 4:45PM

Looks like a good letter FBS. You have everything covered and are showing that the payment is coming from a 3rd party so you can't just make a partial payment with those funds.

Hope it works and good luck with getting a job.

FieryBlondeScot · 5 October 2008 at 4:55PM

cheers george..sure could do with some luck! :beer:

Deep_In_Debt · 5 October 2008 at 5:05PM

I waited until a couple of my debts were passed to DCA's. They buy the debts for peanuts so you have a better chance of negotiating a decent F&F settlement.

Usually, creditors will pass the debt on after a few months of non payment. I stopped paying one of my creditors as they were lumping on charges and interest and refusing to accept my dmp and I waited until it was passed on to a DCA. Unfortunately, it took them 6 months before they did but at least it left me in a better position in the end.

Good luck.

mr_ice2005 · 7 October 2008 at 12:08PM

i am in a process of writing a letter to a creditor explaining i am being made redundant and will offer them 50% of outstanding balance (by selling my only asset which is a car worth £3000).

If i was to offer them say 35%-40% of outstanding balance will they think i am taking the biscuit? Is there a rule of thumb in this sort of case?

Ofcourse i will provide all the evidence i have (of redundancy and value of car) as my aim is not to pull a fast one on them but to get myself out of debt. I am currently with CCCS with 10k worth of loans (excluding 10k of student loans)

thanks

mr_ice2005 · 7 October 2008 at 2:24PM

i have completed my letter and will be offering them £3000 for £7000 worth of debt

Diana_Prince · 7 October 2008 at 2:30PM

Can I put names of DCA's on here? Just so people might be able to help with what kind of percentage they're likely to take!

FieryBlondeScot · 7 October 2008 at 4:02PM

well i have just phoned them all up to get latest balances and so far barlcays said they would accept £80 on a balance of £126, and MBNA said i have to ring them and do an income/expenditure sheet then they will discuss figures with me. I am just going to send them the same letters i am sending everyone else and dividing as follows

barclays owe 126 will offer 69
barclaycard owe 26 will offer 14
mbna owe 953 will offer 525
egg owe 344 will offer 190

this is based on a lump sum available of 800 pounds - sending by recorded delivery today

mr_ice2005 · 7 October 2008 at 5:26PM

FieryBlondeScot did you do what u were thinkin about waiting til ur debts went to a debt collection agency? Becos i am thinkin of negotiating with Egg directly

Full and Final Settlement Letter

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