Full and final settlement help thread

sourcrates · 27 February 2017 at 6:51PM

What type of debt is it they are collecting ?

Are they acting as Bailiffs, or debt collectors ?

food4thought1 · 27 February 2017 at 6:52PM

just debt collector at the mo

January2015 · 4 March 2017 at 12:37AM

The reason I originally put that you were 'happy to accept that default back in 2012' was because you wrote

jaydj79 wrote: »

......I came across a debt management company called Baines & Ernst. They kindly took on my debt (for a small monthly fee) and dealt with Lloyds on my behalf. My monthly payment went from £480 per month down to £280. Great. In 2012 I contacted Lloyds once more as I wished to clear my outstanding debt. Myself and the advisor agreed upon an amount that would be satisfactory for both parties and ultimately close my account, so I paid it and that was that. About a month later I received a letter stating that my payment would be classed as 'partial payment' and my account will be shown as 'Defaulted' for the next 6 years.

Let's break that down

You got a debt management company to deal with your debt for less than the contracted monthly payment
In 2012 you and your debt adviser agreed to a reduced settlement amount with Lloyds
One month later you received a default letter.

So - you did default the account, and as you have not raised the subject until now I assumed, obviously incorrectly, that you were happy to accept that default - otherwise you would have challenged it at the point of receiving the default letter.

The thing is, everyone on this forum who is dealing with their debts through some form of debt management plan is keen to obtain defaults as quickly as possible. If you read many of the threads (and especially the DMP Mutual Support thread) you will see people eagerly chasing defaults on their accounts. Some stop paying altogether, and some pay only token £1 payments until the original creditor defaults them. I am saying 'everyone' because I am confident everyone on this forum on a DMP wants defaults asap. As you had been in a DMP, that is the reason I assumed you were happy to accept the default.

I began the sentence with "I'm not an expert, but in my opinion" because I wanted to make it clear to you that this was my view of your situation, rather than any view of a legal option (or not). That does not make me "an idiot, plain and simple"

Once again.....thank you for your kind words.....and welcome to the forum:beer:

Oh...was I being condescending ?????

sourcrates · 4 March 2017 at 1:03AM

jaydj79 wrote: »

I came across a debt management company called Baines & Ernst. They kindly took on my debt (for a small monthly fee) and dealt with Lloyds on my behalf..

Next time may I recommend using stepchange, payplan, or CAB who will all set up a debt management plan for free.

Alternativly you could of self managed your debt, again for free.

We don't really recomend using fee charging debt management companies as they will end up taking quiet a lot of money from you over time, so in effect you paid much more than you should of done, thus prolonging the time you were in debt.

fatbelly · 4 March 2017 at 8:08AM

jaydj posted 2 months ago about a default that had only been applied after a dmp and a F&F settlement. He got replies (same day) from 3 of us. The replies weren't identical, because this is a forum.

But if you read the replies it is clear that we feel he has an argument with the lender that the default marker should have been applied at the usual 3-6 months of arrears point. He was given the ICO guidance that he should not have been placed in a worse position than someone who made no effort to pay.

It was confirmed that lenders can and do change default dates. He needs to argue this with the lender and if necessary complain to the ICO.

January2015 · 4 March 2017 at 9:39AM

fatbelly wrote: »

jaydj posted 2 months ago about a default that had only been applied after a dmp and a F&F settlement. He got replies (same day) from 3 of us. The replies weren't identical, because this is a forum.

But if you read the replies it is clear that we feel he has an argument with the lender that the default marker should have been applied at the usual 3-6 months of arrears point. He was given the ICO guidance that he should not have been placed in a worse position than someone who made no effort to pay.

It was confirmed that lenders can and do change default dates. He needs to argue this with the lender and if necessary complain to the ICO.

Hi Fatbelly

I did read the original post and subsequent responses. I totally understand he has been advised he has an argument and may be able to get the default removed.

My point in my above post was that I did make it clear it was my view only in my original post and to point out that in general people on DMPs chase default markers. My response was the first response to the OP original post. Offering my view was never intended to be condescending -in the original response.

I'm normally an easy going laid back type of person and don't usually bite back at anything. It was late last night - I have no excuse for the second response. I'll happily delete or edit it if necessary. :beer:

somuchindebt · 6 March 2017 at 2:01PM

Hello, I have received letter accepting full and final settlement but they do not call it as "full and final settlement", they say, "partial settlement". They say that if payment is made with accordance to this letter, neither them nor their client will take any further steps in relation to recovery of the remaining balance. Is it safe to pay? They don't mention that they wouldn't sell it on though.They are acting as DCA and not the owner of the debt.

sourcrates · 6 March 2017 at 2:14PM

somuchindebt wrote: »

Hello, I have received letter accepting full and final settlement but they do not call it as "full and final settlement", they say, "partial settlement". They say that if payment is made with accordance to this letter, neither them nor their client will take any further steps in relation to recovery of the remaining balance. Is it safe to pay? They don't mention that they wouldn't sell it on though.They are acting as DCA and not the owner of the debt.

Partial settlement is correct, as thats what your doing.

Sounds ok to me, a further step in relation to recovery action would be to sell it on, as they say they won't take further steps, I would be happy with that.

somuchindebt · 6 March 2017 at 2:17PM

Thank you Sourcrates, helpful as always. I had this letter on email but as PDF attachment is it ok or I do wait for postal copy?

National_Debtline · 6 March 2017 at 4:02PM

somuchindebt wrote: »

Thank you Sourcrates, helpful as always. I had this letter on email but as PDF attachment is it ok or I do wait for postal copy?

Hi there

Do you mean they have simply scanned the letter and attached it to an email as opposed to posting it out to you? Ultimately you can insist on confirmation in writing if that is what you want, but in principle this email they have sent you sounds very clear and if they or anyone else were to do a U-turn and try to collect the "full" debt at a later stage, that email would serve as very strong evidence in your favour.

Dennis
@natdebtline

Full and final settlement help thread

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