Full and final settlement help thread

mandyh42 · 8 June 2015 at 1:38PM

We have been on a DMP for the last 5/6 years with Stepchange. We got in touch with a mortgage broker last august and have just moved house, its been a long process, the rates a lot higher because of our situation. We have signed to say that we are going to clear our debts with some of the proceeds of the sale. It is our plan to renegotiate a better mortgage once our debts are clear. We have owed my mum and dad £35000 going back 20+ years which we never thought we would be able to payback .... im so pleased we can. Our debts total 31000 and we want to make !!!!!! to the vaule of 18000. So we have 53000 split between parents and creditors. Will our creditors want to take the money we are paying my parents ??? Any advise would be really appreciated, thankyou

bennyhill_2 · 8 June 2015 at 6:20PM

mandyh42 wrote: »

<snip> So we have 53000 split between parents and creditors. Will our creditors want to take the money we are paying my parents ??? Any advise would be really appreciated, thankyou

They will I believe - that is, if you tell them (surely it would be considered preferential treatment of the creditors). Personally if you have £18k for the 'commercial debt' I would just pro-rata offer them a proportionate amount of this £18k and see what they say.

fatbelly · 8 June 2015 at 6:23PM

mandyh42 wrote: »

We have been on a DMP for the last 5/6 years with Stepchange. We got in touch with a mortgage broker last august and have just moved house, its been a long process, the rates a lot higher because of our situation. We have signed to say that we are going to clear our debts with some of the proceeds of the sale. It is our plan to renegotiate a better mortgage once our debts are clear. We have owed my mum and dad £35000 going back 20+ years which we never thought we would be able to payback .... im so pleased we can. Our debts total 31000 and we want to make !!!!!! to the vaule of 18000. So we have 53000 split between parents and creditors. Will our creditors want to take the money we are paying my parents ??? Any advise would be really appreciated, thankyou

You're going to pay your parents 35k then try to settle 31k debts using 18k. That's do-able. Start lower to give room to negotiate. Just tell them you can offer say 35% and see what they come back with. You don't have to let them know the fine detail.

Are you keeping the dmp going in the meantime?

mandyh42 · 8 June 2015 at 10:25PM

Yeah were keeping the DMP going, havent missed any payments from Day 1. Thought a bout asking stepchanges f&f dept to do it for us .....but not sure how they will react to mum and dads payment !

mandyh42 · 9 June 2015 at 1:11PM

fatbelly wrote: »

You're going to pay your parents 35k then try to settle 31k debts using 18k. That's do-able. Start lower to give room to negotiate. Just tell them you can offer say 35% and see what they come back with. You don't have to let them know the fine detail.

Are you keeping the dmp going in the meantime?

Yes were keeping the DMP going. Do you think stepchange will deal with this for us in their full and final dept ??

fatbelly · 9 June 2015 at 3:23PM

mandyh42 wrote: »

Yes were keeping the DMP going. Do you think stepchange will deal with this for us in their full and final dept ??

Not sure they're going to be happy and I think you'd be better keeping in control of the process.

cmc_entertainment · 25 June 2015 at 12:03AM

For an update on full and final settlements offers

Vanquish via Moorcroft : Settled at 40%
Capital One : Settled at 60% (higher due to ppls experiences of 55%+)

More to come but a great start

dobbollah · 9 July 2015 at 6:18PM

Looking for a litlte advice on this....maybe just to be told to be patient but i'm wound up...

situation.....Had an account with halifax credit card and they sent a letter giving a settlement figure, 2 days later they sell the debt to a DCA.

After waiting 2 weeks for the DCA to look at the offer the tell me they want a full settlement....after a moan they have now contacted Halifax to discuss the original letter, even though they told me we they bought the account and Halifax have nothing to do with it !

I want to settle but feel like telling them what to do and settle another account even though that one isnt the same level of discount....

NewcastlePaul · 14 July 2015 at 10:08AM

NewcastlePaul wrote: »

Was originally £108k in debt.
10 years of Stepchange have got that down to £49k

A bit of PPI reclaiming and an offer of help from my mother means I have £25k to offer as F&F settlement offer

Creditor.....Outstanding......Stepchange Payment
Lloyds.......£13.3k..............£101
Barclays....£9.4k................£82
Idem.........£7.4k................£42
Marlin........£3.7k................£28
Marlin........£4.4k................£55
Link...........£2.7k................£33
B/card........£2.3k...............£28
BoS...........£2.4k................£25
B/card........£1.4k...............£17
Asset Link....£1.4k..............£14
Beneficial......£0.5k.............£44

(Figures rounded up)

Offered...............................Accepted
30%...................................No One
40%...................................Marlin (3.7k acc)
50%...................................Marlin (4.4k acc)

Only sent 50% offers last week and only other reply is a refusal from Lloyds.

Creditors have advised they would accept....

60% - Asset Link . Will pay that as £1664 (offered £1387)
65% - Lloyds - Biggest creditor but dont want to jump quickly
71% - Barclays - 2nd biggest creditor. As above
75% - BOS, Barclaycard (1.4k acc)
80% - Barclaycard (2.3k acc)
90% - Assetlink
100% - Idem, Benficial *

* Beneficial is under £456 now and as monthly payment is £44
then they probably unlikely to accept anything so that account I may just not send further offers and let it pay off naturally.

Idem just respond that they are not prepared to take a reduced settlement. Bearing in mind they get less than Beneficial a month yet the balance is 15 times greater i thought they may have been willing to accept a F&F.

Looks like still a way to go. Should have responses to rest of written 50% offers in the next week or two. Will then take it from there and decide to keep nudging up or accept (esp Lloyds)

start of F&F was
Debt was 49k and funds were 25k

after asset link payment
Debt will be 38k with 19.6k funds left

Will keep you updated

Wockywocky · 16 July 2015 at 12:26AM

I have a DMP through Payplan, which is due to end in 5 months. My lowest creditor, Idem Servicing, is owed £140. Trying to contact them and Payplan, is like trying to get blood out of a stone. My total debt owed is now £2900, through 7 creditors. I was hoping to try to end a couple of months early, but although Ive asked Payplan for the point of contact at Idem, Payplan just deletes my messages and refuses to help. I have tried several means to contact Idem, to no avail. Surely, Payplan should assist more than this. I have never missed one payment in 7 years and a third of my income goes to the DMP, so that I can end it asap.

Can someone offer advice please.

Full and final settlement help thread

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