Full and Final Settlement Letter

Deep_In_Debt · 7 October 2008 at 5:46PM

Hi
I waited until my debts were passed onto DCA's. The original creditors would accept nothing less than 70% but I cleared 2 debts that had been passed to DCA's at 45% and 55%. DCA's buy debts for peanuts so they are easier to negotiate with and get better deals.

Please make sure that you get the offers in writing before sending any money and that your credit file will be marked as "satisfied" and that neither they nor any third party or associate will chase you for the remainder at a later date and that you are released from any further liaibilty. This is important. I had my fingers burnt on this one a couple of years back.

Good luck.

Deep_In_Debt · 7 October 2008 at 5:52PM

Mr_ice,
I personally wouldn't let creditors know how much money you have available as they will want the whole lot. Just say that you have some money available and can offer xxxx.

I got made redundant also after 12 years at my company and got a lump sum payment. however it wasn't enough to clear my debts in full so I have offered F&F on my debts. I have not told creditors how much lump sum I have got.

Good luck with it.

mr_ice2005 · 7 October 2008 at 6:36PM

Deep_In_Debt wrote: »

Mr_ice,
I personally wouldn't let creditors know how much money you have available as they will want the whole lot. Just say that you have some money available and can offer xxxx.

I got made redundant also after 12 years at my company and got a lump sum payment. however it wasn't enough to clear my debts in full so I have offered F&F on my debts. I have not told creditors how much lump sum I have got.

Good luck with it.

Hey deep-in-debt

I am only telling them i have a 3k worth car and that is all i have to give (once sold). I figured if i be as honest and truthful to them then they might just accept my offer. Wouldnt you agree?

When people say let it go to a debt collecting agency. This happens if i completely stop paying the creditors right? Wont i need to stop the CCCS Debt management Plan i have with them? If it goes to a DCA wont this have an even worse effect on my credit file?

FieryBlondeScot · 21 October 2008 at 8:34PM

so 2 weeks on i have today recieved acknoweldgemnt of my letter to barclaycard offering F&F, and they ask that i ring them to discuss.....

1. i thought they would write and say they accept/dont accept
2. does anyone know how best i should handle the said phone call?

no replies as yet from barclays or mbna or egg

Deep_In_Debt · 21 October 2008 at 9:16PM

Hi
Just again from personal experience - don't ring them.

Write to them again re stating your offer is F&F and that if they are not prepared to accept it, you will offer it to another creditor and say you only have the money for a limited time (or words to that affect). If you phone them, they will try and get more.

Deep_In_Debt · 21 October 2008 at 9:23PM

mr_ice2005 wrote: »

Hey deep-in-debt

I am only telling them i have a 3k worth car and that is all i have to give (once sold). I figured if i be as honest and truthful to them then they might just accept my offer. Wouldnt you agree?

When people say let it go to a debt collecting agency. This happens if i completely stop paying the creditors right? Wont i need to stop the CCCS Debt management Plan i have with them? If it goes to a DCA wont this have an even worse effect on my credit file?

Sorry, I didn't reply mr_ice.

I still wouldn't tell them! Believe me, they will still want you to pay the full amount. Creditors have no morals and don't care about honesty. They are not honest with you, so why should you be with them?

No it doesn't happen if you completely stop paying. Many creditors will pass debts on to DCA's because it costs them more to collect the debt than you are paying and creditors like to "get rid" of bad debts from their books. The effect will be no worse on your credit file if it goes to a DCA - if you are on a dmp, your credit is shot regardless of who chases it. So, no don't stop the CCCS payments.

FieryBlondeScot · 22 October 2008 at 7:10PM

thanks for reply! i think i will write to them all again stating that acceptance must be in writing to me and hope for the best :beer:

Hodgehappy · 22 October 2008 at 7:29PM

I've been on a dmp with payplan for 6 mths MBNA have been wanting me to pay more (as expected) they have offered me to settle (on 2 C/cards I owe them 22k) 10k to clear both debts so slightly more than 50% that they said they will accept off me. Only wish I could pay this, sounds a great deal from them

Deep_In_Debt · 22 October 2008 at 7:37PM

Hodge
Why not write to them and offer them what you can afford (45%) and take it from there? What have you got to lose by trying?

Say that it is all you can afford and you have been lent the money for a limited time for the purpose of clearing the debt and if they are not willing to accept it then then you offer it to another creditor or that the money will be withdrawn. Give them say, 21 days to accept? Might be worth a try?

After all, they try it on with us - why not try it back?

From what I have learnt, MBNA are in a bit of a financial pickle at the moment so I wouldn't be surprised if they accept your offer.

Good luck.

Deep_In_Debt · 22 October 2008 at 7:42PM

FieryBlondeScot wrote: »

thanks for reply! i think i will write to them all again stating that acceptance must be in writing to me and hope for the best :beer:

Good luck with it. I know how much of a pain in the bum it is but believe me, it's worth the perservence in the end! I think I peed one of the DCA's so much that they accepted my offer just to get rid of me!

Keep us posted!

Full and Final Settlement Letter

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