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  • FIRST POST
    • Weggy
    • By Weggy 19th Nov 05, 10:20 AM
    • 463Posts
    • 98Thanks
    Weggy
    Full and final settlement help thread
    • #1
    • 19th Nov 05, 10:20 AM
    Full and final settlement help thread 19th Nov 05 at 10:20 AM
    Hi all

    Am currently trying to negotiate with debt collection agencies, to get them to accept a full and final settlement figure. Does anyone have any tips on persuading them to lower their demands?

    Thanks

    Last edited by MSE Archna; 21-06-2006 at 7:41 AM.
Page 102
    • RW01
    • By RW01 19th Nov 17, 12:00 PM
    • 3 Posts
    • 12 Thanks
    RW01
    Carbootcrazy, they have confirmed they no longer intend to pursue the debts, they've said the debt still legally remains and if it's under 6 years will still show on my credit file (but my credit rating is already shot so I'm just happy to get rid of the debt). Also some are over 6 years so off my credit rating already. They have said it's not to be confused with writing off the debt but in essence that's what they've done if they're no longer pursuing it. I've only had a response from 3 of 8 of far, would be lovely to get another one or two more but think that may be too optimistic!!! Can blame me for hoping though!
    • slm6002
    • By slm6002 19th Nov 17, 2:50 PM
    • 1,772 Posts
    • 4,804 Thanks
    slm6002
    Hi, sorry if I am about to ask a stupid question (I have read many pages on this thread but couldn't read it all, and tried searing for my answer before asking) What is a CCA, and is there a template letter (I know there sometimes is) I can use please. I am in the process of looking at f&f payments so came here for ideas and support. If I can remove more before I start that would be great. Thanks in advance
    Me,OH, DD 12, DS 10, DD 7
    DFW Nerd 1103
    • sourcrates
    • By sourcrates 19th Nov 17, 6:16 PM
    • 12,723 Posts
    • 12,064 Thanks
    sourcrates
    Hi, sorry if I am about to ask a stupid question (I have read many pages on this thread but couldn't read it all, and tried searing for my answer before asking) What is a CCA, and is there a template letter (I know there sometimes is) I can use please. I am in the process of looking at f&f payments so came here for ideas and support. If I can remove more before I start that would be great. Thanks in advance
    Originally posted by slm6002
    Hi,

    Been covered 1000 times, but latest would be a while back now.

    Template letter here :

    https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-(sole-name).aspx

    Info here on what it is, how to send one, what to expect back, and penalty for a creditor for non compliance :

    https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • slm6002
    • By slm6002 19th Nov 17, 6:33 PM
    • 1,772 Posts
    • 4,804 Thanks
    slm6002
    Thank you for that - as I say I wasn't able to read the whole thread but have read a fair amount. I will have a read and fingers crossed
    Me,OH, DD 12, DS 10, DD 7
    DFW Nerd 1103
    • carbootcrazy
    • By carbootcrazy 20th Nov 17, 12:28 PM
    • 4,158 Posts
    • 23,317 Thanks
    carbootcrazy
    Please can someone answer my query about who to make F&Fs to, the original creditor, the DCA who are managing it or the company it has recently been sold to? Apologies if this kind of question has been asked and answered before.


    This particular account is an old Mint CC, part of RBS. It has been collected by Wescot since 2014 and has recently been sold to Cabot. Wescot are still managing payments though. Confusing or what?


    It is an enforceable debt () of £2400. Is 30% a reasonable amount to offer them or should I start lower? I've been paying £1 a month for the past 5 months and planned to continue doing so for a few months longer.
    Make £10 A Day Challenge 2017. Jan-Oct: £4500 ish
    Signing off for 2017, already smashed my year's target
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £12411
    . Getting there.
    • sourcrates
    • By sourcrates 20th Nov 17, 5:33 PM
    • 12,723 Posts
    • 12,064 Thanks
    sourcrates
    Please can someone answer my query about who to make F&Fs to, the original creditor, the DCA who are managing it or the company it has recently been sold to? Apologies if this kind of question has been asked and answered before.


    This particular account is an old Mint CC, part of RBS. It has been collected by Wescot since 2014 and has recently been sold to Cabot. Wescot are still managing payments though. Confusing or what?

    It is an enforceable debt () of £2400. Is 30% a reasonable amount to offer them or should I start lower? I've been paying £1 a month for the past 5 months and planned to continue doing so for a few months longer.
    Originally posted by carbootcrazy
    In this case you could make the offer directly to Cabot, Wescot would only have to refer back to them anyway
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • carbootcrazy
    • By carbootcrazy 20th Nov 17, 8:19 PM
    • 4,158 Posts
    • 23,317 Thanks
    carbootcrazy
    In this case you could make the offer directly to Cabot, Wescot would only have to refer back to them anyway
    Originally posted by sourcrates
    Thanks, sourcrates. I'll take your advice.

    Do you think there'd be any hope of a 25% settlement? I don't want to start too high. As it's been sold on now I wonder whether they might be glad to be rid of it. Does anyone know what Cabot are like to deal with for F&Fs?
    Make £10 A Day Challenge 2017. Jan-Oct: £4500 ish
    Signing off for 2017, already smashed my year's target
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £12411
    . Getting there.
    • Smevchenko
    • By Smevchenko 21st Nov 17, 9:50 AM
    • 24 Posts
    • 8 Thanks
    Smevchenko
    Thanks, sourcrates. I'll take your advice.

    Do you think there'd be any hope of a 25% settlement? I don't want to start too high. As it's been sold on now I wonder whether they might be glad to be rid of it. Does anyone know what Cabot are like to deal with for F&Fs?
    Originally posted by carbootcrazy
    I recently had a 50% settlement with Cabot for a debt of £1292, paid the £646 over 3 months which was reasonable of them i thought. Maybe If I had more money available to pay in one go, they might have accepted lower. I was happy enough with 50% though.

    The only issue I am having, is that the last payment was paid 8 weeks ago, and despite a few phone calls since and their insistence that they have updated things on their end, I am yet to see the debt updated as 'partially settled' with a balance of 0 on any credit report. Somewhat frustrating, but the default was for 27/12/2011, so should drop off entirely soon anyway.
    • carbootcrazy
    • By carbootcrazy 21st Nov 17, 10:50 AM
    • 4,158 Posts
    • 23,317 Thanks
    carbootcrazy
    I recently had a 50% settlement with Cabot for a debt of £1292, paid the £646 over 3 months which was reasonable of them i thought. Maybe If I had more money available to pay in one go, they might have accepted lower. I was happy enough with 50% though.

    The only issue I am having, is that the last payment was paid 8 weeks ago, and despite a few phone calls since and their insistence that they have updated things on their end, I am yet to see the debt updated as 'partially settled' with a balance of 0 on any credit report. Somewhat frustrating, but the default was for 27/12/2011, so should drop off entirely soon anyway.
    Originally posted by Smevchenko

    Thanks very much for the reply, Smevchenko.

    Sorry your situation is still causing frustration especially as you paid the final instalment 2 months ago. I suspect it's just a reporting delay on the CRA websites. One of the ones that I check my balances on hasn't been updated since September and I've paid 2 more months since then. For now I'd just take Cabot at their word but if things aren't sorted to your satisfaction by the end of the year I'd definitely chase again.


    Great to hear that your account will disappear from your credit file anyway very soon. It must be a great feeling

    Congratulations too on getting a settlement with Cabot. I think being able to pay it off over 3 months was very reasonable of them. Now I've managed to get enough money together for a couple of F&Fs I was intending to pay in one go just to get things done and dusted. I'm so tired of having debts hanging over me. I was hoping for less than a 50% figure though as I've heard that lots of other companies that have bought debts settle for much less. I hadn't heard anything about Cabot though, that's why I posted my question in the first place. Your experience of them is very useful. Thank you.


    I think I'll contact them today with a cheeky offer. The worst they can do is say no
    Make £10 A Day Challenge 2017. Jan-Oct: £4500 ish
    Signing off for 2017, already smashed my year's target
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £12411
    . Getting there.
    • Smevchenko
    • By Smevchenko 21st Nov 17, 12:00 PM
    • 24 Posts
    • 8 Thanks
    Smevchenko
    Thanks very much for the reply, Smevchenko.

    Sorry your situation is still causing frustration especially as you paid the final instalment 2 months ago. I suspect it's just a reporting delay on the CRA websites. One of the ones that I check my balances on hasn't been updated since September and I've paid 2 more months since then. For now I'd just take Cabot at their word but if things aren't sorted to your satisfaction by the end of the year I'd definitely chase again.


    Great to hear that your account will disappear from your credit file anyway very soon. It must be a great feeling

    Congratulations too on getting a settlement with Cabot. I think being able to pay it off over 3 months was very reasonable of them. Now I've managed to get enough money together for a couple of F&Fs I was intending to pay in one go just to get things done and dusted. I'm so tired of having debts hanging over me. I was hoping for less than a 50% figure though as I've heard that lots of other companies that have bought debts settle for much less. I hadn't heard anything about Cabot though, that's why I posted my question in the first place. Your experience of them is very useful. Thank you.


    I think I'll contact them today with a cheeky offer. The worst they can do is say no
    Originally posted by carbootcrazy

    I have one more outstanding with Cabot, which is the last adverse debt I have after a period of over 15 years, been a long road to sorting my finances out, and knowing I'm a few months from being debt free is a great feeling. It is not reported on Equifax or Call Credit (I have used Clear Score and Noddle), and have tried to use MSE Credit Club, but they won't verify me so not able to see the current status of the debt. I owe about 3k, and currently pay a token £10 a month, they were happy with this as my wife is on maternity.

    I am going to speak to them in the new year when my wife is earning again and hopefully come to a settlement figure, 30% would be affordable in one lump sum.
    Last edited by Smevchenko; 21-11-2017 at 12:06 PM. Reason: more detail
    • ehdx
    • By ehdx 21st Nov 17, 2:58 PM
    • 18 Posts
    • 9 Thanks
    ehdx
    I am in 17k worth of debt and almost can't afford my minimum payments every month, however I am up to date and haven't yet missed a payment. Does this stop me from being able to make an f&f settlement? Would they still consider it?


    The payments each month are only coming out of my overdraft so I'm not really on top of any of it!
    • fatbelly
    • By fatbelly 21st Nov 17, 6:23 PM
    • 11,653 Posts
    • 8,788 Thanks
    fatbelly
    I am in 17k worth of debt and almost can't afford my minimum payments every month, however I am up to date and haven't yet missed a payment. Does this stop me from being able to make an f&f settlement? Would they still consider it?


    The payments each month are only coming out of my overdraft so I'm not really on top of any of it!
    Originally posted by ehdx
    You've got an overdraft and can't afford your minimum payments every month. Yet you have a lump sum?

    The answer to your question is no. If your debts are not defaulted you will need to make payments in full. Pay off the highest interest debt first. That may well be your overdraft in practice.
    • RioDeJaneiro
    • By RioDeJaneiro 21st Nov 17, 6:51 PM
    • 2 Posts
    • 1 Thanks
    RioDeJaneiro
    I've recently offered Lowell 25% of a debt which they obtained a CCJ for and have accepted. The letter has the standard wording "Once you account has been closed, we will contact all credit file referencing agencies and amend the balance on this default to show as partially satisfied. The default will be amended to show as partially satisfied due to the discount negotiated with the settlement figure previously mentioned. Please be assured that this status does not imply that any further payment will be required on this account."

    My question is, is this enough to get the CCJ marked as satisfied? I understand that a CCJ can not be shown as partially satisfied.
    • barmcakebird
    • By barmcakebird 5th Dec 17, 1:16 PM
    • 39 Posts
    • 5 Thanks
    barmcakebird
    Paying off a Debt from a DMP
    Hello

    We have a mortgage shortfall and have agreed an amount to pay it off, with a letter from the mortgage company saying the debt would be cleared when payment is received.

    We are currently on a DMP and working our way through the debts trying to negotiate a F & F for each debt, but the largest one is the mortgage shortfall which we have negotiated down to a tiny amount of the balance.

    We have been unexpectedly gifted some money by a relative randomly which is now in our savings account and we intend to use this to pay this off.

    Stepchange have advised treating all creditors the same and we fully intend to address them all shortly but this is the priority for us at the moment, they have been supportive and know we are trying to address everything sensibly.

    We told the mortgage company that we had a non repayable gift from a relative and this is how we are managing to pay off the mortgage shortfall debt, as we wanted to assure them that we weren't borrowing to pay off this debt.

    I have read that it is advisable to ask a relative or company to pay the money on your behalf as its more secure to use a third party (not sure why) so we asked a sibling, who has also received the same gift to transfer this money or write a cheque to our mortgage company and we could reimburse them - would this work and is this ok ?

    We could of course just pay them ourselves from the money we recieved which would be easier but not sure if this is the same ? The mortgage shortfall is with a high street lender who has quite clearly stated that the balance will be fully cleared upon receipt of these funds and this is in writing. The debt was never passed to a debt company and we have been servicing it for just under six years now, it is due to drop off in June and was defaulted in 2012.

    Can anyone advise as to why we need to use a third party or should we just pay it ourselves ?

    many thanks
    • fatbelly
    • By fatbelly 5th Dec 17, 6:22 PM
    • 11,653 Posts
    • 8,788 Thanks
    fatbelly
    Hello

    We have a mortgage shortfall and have agreed an amount to pay it off, with a letter from the mortgage company saying the debt would be cleared when payment is received.

    We are currently on a DMP and working our way through the debts trying to negotiate a F & F for each debt, but the largest one is the mortgage shortfall which we have negotiated down to a tiny amount of the balance.

    We have been unexpectedly gifted some money by a relative randomly which is now in our savings account and we intend to use this to pay this off.

    Stepchange have advised treating all creditors the same and we fully intend to address them all shortly but this is the priority for us at the moment, they have been supportive and know we are trying to address everything sensibly.

    We told the mortgage company that we had a non repayable gift from a relative and this is how we are managing to pay off the mortgage shortfall debt, as we wanted to assure them that we weren't borrowing to pay off this debt.

    I have read that it is advisable to ask a relative or company to pay the money on your behalf as its more secure to use a third party (not sure why) so we asked a sibling, who has also received the same gift to transfer this money or write a cheque to our mortgage company and we could reimburse them - would this work and is this ok ?

    We could of course just pay them ourselves from the money we recieved which would be easier but not sure if this is the same ? The mortgage shortfall is with a high street lender who has quite clearly stated that the balance will be fully cleared upon receipt of these funds and this is in writing. The debt was never passed to a debt company and we have been servicing it for just under six years now, it is due to drop off in June and was defaulted in 2012.

    Can anyone advise as to why we need to use a third party or should we just pay it ourselves ?

    many thanks
    Originally posted by barmcakebird
    It sounds to me like you're doing everything perfectly.

    Paying through a third party is a bit of a technicality. This is what NEDCAB say:

    There will be a legally binding agreement if either
    •an arrangement is made with all your unsecured creditors: or
    •the funds are made available by a third party (for example, a relative) and the offer is made by him / her: or
    •the agreement is embodied in a formal document known as a 'deed' The services of a solicitor will be required if you want a deed drawing up - for example, if you have any doubts as to the trustworthiness of any particular creditor
    Don't worry too much about Stepchange's objections. If you're going to end up going bankrupt you don't want to be treating creditors differently. But you seem quite confident that you will be clearing your debts without insolvency
    • barmcakebird
    • By barmcakebird 6th Dec 17, 9:25 AM
    • 39 Posts
    • 5 Thanks
    barmcakebird
    Thanks for the reply. I have written to them this morning on email asking for written confirmation that our paying the agreed amount to remedy the shortfall is the end of the matter completely and this cannot be pursued by them or anyone else.

    They usually respond to emails with a letter. Relative is going to transfer the money to them once they write to us with this formal written reassurance.

    Just don't want to pay this and then get asked for more a year down the line. Want an end to the matter once and for all and a clean slate.

    Hopefully we will get this settled by the end of 2017 then onto the other small debts and hopefully a debt free 2018!
    Last edited by barmcakebird; 06-12-2017 at 9:28 AM.
    • CrazyConeLady
    • By CrazyConeLady 7th Dec 17, 9:29 AM
    • 1 Posts
    • 1 Thanks
    CrazyConeLady
    Never posted before but I'm so excited I just had to register so I could lol - I came across this thread by total accident yesterday, had a quick read and decided to contact Lowell where I have 2 of my debt plans in place - Went low and offered 30 % of the total, expecting them to haggle it back up and 2 emails later to confirm some details and they accepted!!! I've just written off approx £5000. I am absolutely delighted!!! One very easy step closer to my debt free day
    • Max and sasha
    • By Max and sasha 7th Dec 17, 8:36 PM
    • 77 Posts
    • 58 Thanks
    Max and sasha
    Hi crazycone

    Did you request your cca?
    • carbootcrazy
    • By carbootcrazy 8th Dec 17, 10:52 AM
    • 4,158 Posts
    • 23,317 Thanks
    carbootcrazy
    Just a quick query while I have the chance to get on here as I need to dash off somewhere in a mo. I hope someone is around to help. Thanks in advance


    I've now built up a nice F&F Fighting Fund and wonder whether it's OK to make an initial settlement offer to a creditor over the phone? I realise that it's best to get everything in writing as there's no record of what's said in phone calls (at my end anyway) but I was thinking just to test the water and see if they are amenable to offers at the outset. Obviously, I'd follow up with a letter and request the same from creditors.
    Make £10 A Day Challenge 2017. Jan-Oct: £4500 ish
    Signing off for 2017, already smashed my year's target
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £12411
    . Getting there.
    • sourcrates
    • By sourcrates 8th Dec 17, 12:08 PM
    • 12,723 Posts
    • 12,064 Thanks
    sourcrates
    Just a quick query while I have the chance to get on here as I need to dash off somewhere in a mo. I hope someone is around to help. Thanks in advance


    I've now built up a nice F&F Fighting Fund and wonder whether it's OK to make an initial settlement offer to a creditor over the phone? I realise that it's best to get everything in writing as there's no record of what's said in phone calls (at my end anyway) but I was thinking just to test the water and see if they are amenable to offers at the outset. Obviously, I'd follow up with a letter and request the same from creditors.
    Originally posted by carbootcrazy

    The problem with that, is that when you call one of these creditors/debt collectors, you get the call handler, who will only be authorized to deal to a certain number, and no more.

    What you should really do is write with the proposal, using the national debtline template letter, this will then be passed on to the correct dept who will have a lot more discretion in decision making, than a call handler will.

    It might take longer, and be a bit of a faff, but it could save you a lot of money.
    Last edited by sourcrates; 08-12-2017 at 12:10 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
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