Full and Final Settlement

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  • somuchindebt
    somuchindebt Posts: 102 Forumite
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    Thank you sourcrates
  • Gazza1964
    Gazza1964 Posts: 320 Forumite
    Debt-free and Proud!
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    Hi,

    Hope you don't mind me asking my question here but it is related to full and final settlement.

    I have been with Stepchange since July 2012 and my DMP is due to end in April 2018 with me currently owing around 5.5K not including this months payment.

    My debts are broken down like this
    A: 3460
    B: 740
    C: 672
    D: 576

    I have spoken to Stepchange about f&f but they require the money upfront which is a problem as I am getting it from a family member and they are only willing to help me if it makes me debt free. Stepchange cant guarantee that the amount provided which is 4k will clear my debt as some companies may not accept f&f on a reduced amount. This is understandable from Stepchange and I am in no way saying anything bad about them they have been truly great over the last 4 years.

    So what I want to know is what do I do?

    I cant give the 4k to Stepchange only to find out that my debts are not cleared especially as I don't know for 100% that interest wont be added by one of these companies at the end of my DMP - which I have read has happened before.

    Would I be best taking matters into my own hands and offering f&f payments to these companies myself and if so what should I offer -

    Thanks for any advice - Garth
  • sourcrates
    sourcrates Posts: 28,924 Ambassador
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    Gazza1964 wrote: »

    Would I be best taking matters into my own hands and offering f&f payments to these companies myself and if so what should I offer -

    Thanks for any advice - Garth

    You have answered your own question.

    Always best doing this yourself, the kind of settlement you can expect depends on a number of factors, how old the accounts are, are they with original creditors, or debt collectors.

    You must always get a settlement agreed in writing, the National Debtline template letter is good for this purpose, but there's no harm ringing up and negoatiating a bit on the phone first, if your lucky enough to get someone who you can have a little banter with, get a bit Of rapour going, in other words, soften them up a bit, then the chances of a good settlement are much higher.

    It's all about negoatiating a good deal that's right for you, you can always back out if they won't budge.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Gazza1964
    Gazza1964 Posts: 320 Forumite
    Debt-free and Proud!
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    Thanks - I have just finishing writing letters to them all using the template and have asked them to give me a figure they would accept.

    See what happens
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Gazza1964 wrote: »
    Thanks - I have just finishing writing letters to them all using the template and have asked them to give me a figure they would accept.

    No matter what figure they come back with you've got £4k max. If they want more there's no harm in you telling them this is a one time offer and suggesting a figure as the maximum you can stretch to.

    James
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • Dorsetdave
    Dorsetdave Posts: 13 Forumite
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    I've recently received a near identical letter from Cabot. Offering me a chance to clear £8363.12 with a £2508.94 payment (I make that 30% of the debt).

    Discussing it with my Mum she sent me a cheque, God bless her, but before excepting the offer I thought I'd check it out with you guys. Slightly concerned now as there's few conflicting opinions on this post concerning the best thing to do.

    Like the original poster I'm on a DMP with Stepchange so I'm puzzled at their attitude to clearing a chunk of any debt (with a good discount).

    I have 3 other debts "Owned" by Cabot:
    £7256.54
    £2080.53
    £886.41

    Plus 1 with Moorgate
    £1986.80

    I think they'd have a hard case of accusing me of discriminating in this case (as it'd be against themselves)!

    What's the main drawback of having an account updated with "Partially Settled" if it has a "Nil Balance Outstanding"? These DCA seem VERY reticent at applying "Full & Final Payment" from what I've read on this forum.

    Cheers.
  • Marktheshark
    Marktheshark Posts: 5,841 Forumite
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    Have you done the step 1 :
    Request all CCA agreements + deed of assignment (signed) .

    We have seen £25,000 reduced to £0 in one letter when they admitted they had neither the CCA documents or the deed of assignment.
    I do Contracts, all day every day.
  • fatbelly
    fatbelly Posts: 20,580 Forumite
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    Dorsetdave wrote: »
    I've recently received a near identical letter from Cabot. Offering me a chance to clear £8363.12 with a £2508.94 payment (I make that 30% of the debt).

    Discussing it with my Mum she sent me a cheque, God bless her, but before excepting the offer I thought I'd check it out with you guys. Slightly concerned now as there's few conflicting opinions on this post concerning the best thing to do.

    Like the original poster I'm on a DMP with Stepchange so I'm puzzled at their attitude to clearing a chunk of any debt (with a good discount).

    I have 3 other debts "Owned" by Cabot:
    £7256.54
    £2080.53
    £886.41

    Plus 1 with Moorgate
    £1986.80

    I think they'd have a hard case of accusing me of discriminating in this case (as it'd be against themselves)!

    What's the main drawback of having an account updated with "Partially Settled" if it has a "Nil Balance Outstanding"? These DCA seem VERY reticent at applying "Full & Final Payment" from what I've read on this forum.

    Cheers.

    That's quite a lot of debt. £20573 before the deal, £12210 after. How long is it going to take to clear the other debts?
  • Dorsetdave
    Dorsetdave Posts: 13 Forumite
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    Hi Fatbelly

    Estimated Debt Free Oct 2027! The debt is a lot but unfortunately I didn't spend it all on fast women, drink & cars. Had a business and it got hit by the Financial crash, sold it at a £60-70K loss and moved at the same time taking another hit of £25-30K on the house. Just to put the icing on the cake when I moved my Full Time Contract was "Down-sized" to a 20 hour contract! Not a good year.

    I was getting Mega stressed by all the DCA letters etc so turned to SC (who I have nothing but respect for) they put me on a DMP and you can only afford so much can't you? I've recently started paying an extra £50 a month due to a Review, SC has suggested I may now be suitable for an IVA. Don't know why they didn't suggest this in the first place?

    As a layman (and with hindsight) I'd have thought I'd have been better off with an IVA when I started this DMP about 7 years ago? I'm very concerned that an IVA at this stage would trash my Credit as I'm looking at trying to get a mortgage next year, at least at present I've only got a borderline "Poor" rating with not Major Flags. Basically I resigned to chip away at the debt, and get on with a loan free life.
  • Dorsetdave
    Dorsetdave Posts: 13 Forumite
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    Marktheshark wrote: »
    Have you done the step 1 :
    Request all CCA agreements + deed of assignment (signed) .

    We have seen £25,000 reduced to £0 in one letter when they admitted they had neither the CCA documents or the deed of assignment.

    Hi Marktheshark

    I haven't done this. I take it I've not checked a certain forum for info? Do you have a link? These debts are genuine, I'll put my hands up to that, they're all loans or overdrafts.

    I'm on a DMP with SC. I would have thought they'd checked out any legal angles? All advice appreciated.
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