Full and final settlement help thread

HairyHandofDartmoor · 9 December 2017 at 10:47PM

carbootcrazy wrote: »

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:T

I've now built up a nice F&F Fighting Fund:j 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.

I sent my creditors letters making full and final offers and then rang them 7 days later to ask if they'd received the letters. They asked me some questions over the phone and then all said yes. I waited until they sent letters to me confirming their acceptance of my offers and then paid.

So a combination of letters and phone calls can speed things up.

CrazyConeLady · 19 December 2017 at 12:20PM

I just registered my accounts online with Lowell, sent an email offering a reduced amount, they replied with some questions. I ignored the ones I wasn't happy about answering - eg my current employment details - as I already had a plan in place with them. A few emails later they accepted my offer!! All completed within a few days. Ive now had confirmation that my accounts are partially satisfied with zero balances. Cant believe how easy it was - might not be the same for everyone though.

Highgreen · 21 December 2017 at 3:36AM

Hi guys.

I only recently found this forum and its great, so keep up the good work.

I have debts with nine creditors which I've been making token payments on for the last 7 years.
Most have been sold on, some several times.

I've recently had these two offers to settle these debts at a substantial discount.

Cabot Financial £9160 70% Discount pay £2748 and save £6412
Debt Managers £5925 70% Discount pay £1777 and save £4147

As I say I'm only making token payments on these every month and in reality they are never going to be paid off so should I jump at this offer or perhaps hang on in the hope that they may come back with an even better offer?
From what I've read on here 70% discount does seem a good offer though and I may not get a better one if I pass this up.
I have a limited time to accept these though as they both expire at the end of December.
I have a relative who has offered to help me out with these.

There's nothing in the Cabot letter about F&F so I'd have to get that sorted first before I make any payments.

I've only just heard of doing a CCA request and as both of these are credit cards I assume the advice would be to do this first but I dont think I have the time!

Also had an offer from Wescot on an old Barclays overdraught to settle at 50% discount
which I dont think is too bad as I've read they can be one of the more difficult.

Any advice appreciated.

Thanks.

fatbelly · 21 December 2017 at 8:09AM

Highgreen

Their 'deadlines' are just to get you to bite quickly. There's no danger of losing the ability to settle. You have to understand that they have a massive book of bad debt bought at a fraction of its headline value - maybe at 6%.

Taking court action has become more difficult since October and, in your case, they accept that it would be throwing good money after bad and so they have made an 'opening offer' to settle.

What you need now is a strategy to get debt-free, and token offers does not do that. You appear to have large debts (over 20k), no surplus income and no capital. Is there a good reason why you should not go bankrupt? Your relative could save over £4000 and just pay the £680 fee.

[Deleted User] · 21 December 2017 at 8:55AM

Highgreen wrote: »

Hi guys.

I only recently found this forum and its great, so keep up the good work.

I have debts with nine creditors which I've been making token payments on for the last 7 years.
Most have been sold on, some several times.

I've recently had these two offers to settle these debts at a substantial discount.

Cabot Financial £9160 70% Discount pay £2748 and save £6412
Debt Managers £5925 70% Discount pay £1777 and save £4147

As I say I'm only making token payments on these every month and in reality they are never going to be paid off so should I jump at this offer or perhaps hang on in the hope that they may come back with an even better offer?
From what I've read on here 70% discount does seem a good offer though and I may not get a better one if I pass this up.
I have a limited time to accept these though as they both expire at the end of December.
I have a relative who has offered to help me out with these.

There's nothing in the Cabot letter about F&F so I'd have to get that sorted first before I make any payments.

I've only just heard of doing a CCA request and as both of these are credit cards I assume the advice would be to do this first but I dont think I have the time!

Also had an offer from Wescot on an old Barclays overdraught to settle at 50% discount
which I dont think is too bad as I've read they can be one of the more difficult.

Any advice appreciated.

Thanks.

Welcome to the thread:hello:. I was very late to twig that such an option as F&Fs existed:doh: but once I discovered the really helpful advice on here I felt so much more relaxed about finally becoming debt-free. If there's anything you need to know please ask.

I see fatbelly has replied to you and suggested Bankruptcy. You may have valid reasons for not taking that route (I never seriously considered it myself even with initial debts of almost £57000) but I would urge you to definitely send off CCA requests. As fatbelly says, the creditors are trying to rush you into making a final payment, that's one of the devious tactics they use:mad:.

I assume these are long-standing debts so there is a good chance they could be unenforceable especially if they date from before 2007. Sometimes even newer debts are unenforceable too. Give it a go, there are various letter templates you can use to request the info you need. Well worth a try for a small cost (£! per account if my memory serves me correctly).

Good Luck:beer:

Highgreen · 22 December 2017 at 2:24AM

Hi fatbelly,

thanks for your reply,
so what happened in October to make taking court action more difficult?

I am a home owner so bankruptcy is not an option for me!

You're right I do have large debts £70k, but I may be in a position to clear them with the help
of a family member if I can get them all to accept around 30% F&F's like Cabot and Debt Managers have offered.
Some of these debts are quite old so I really need to send off CCA requests for them.
I assume I need to send a £1 uncrossed postal order to each creditor?

I'm just worried that sending these off may get their backs up and they may withdraw their settlement offers, or am I just being silly?

And hi carbootcrazy, thanks for your welcome and advice also.

Thanks again guys. :beer:

fatbelly · 22 December 2017 at 9:20AM

There was a pre-action protocol brought in for debt claims. If you know what you are doing you can tie them up for months. Advice on Debt Camel is very good.

I understand why your options are limited - it sounds like now is a good time for you to try this.

Yes, if these are credit cards your first move should be formal requests under s77-79 CCA. See what comes back.

Can't see any downside to that.

sourcrates · 22 December 2017 at 9:52AM

Highgreen wrote: »

Hi fatbelly,

thanks for your reply,
so what happened in October to make taking court action more difficult?

I am a home owner so bankruptcy is not an option for me!

You're right I do have large debts £70k, but I may be in a position to clear them with the help
of a family member if I can get them all to accept around 30% F&F's like Cabot and Debt Managers have offered.
Some of these debts are quite old so I really need to send off CCA requests for them.
I assume I need to send a £1 uncrossed postal order to each creditor?

I'm just worried that sending these off may get their backs up and they may withdraw their settlement offers, or am I just being silly?

And hi carbootcrazy, thanks for your welcome and advice also.

Thanks again guys. :beer:

You would not believe how inept some creditors are at keeping paperwork, I have had creditors unable to comply with a CCA request from a 3 year old debt, so there is a good chance yours may struggle to comply.

As Fatbelly says, there is no downside to this strategy, it’s your right under the terms of the consumer credit act to ask for information regarding your account.

bluemonday3 · 22 December 2017 at 11:25AM

Good morning, as advised I have written to my creditors asking for CCA's prior to offering full & final settlements.
Cabot Financial have responded by saying that I requested this information in 2013 and have just sent a copy of the letter they sent me then and they say they can enforce the debt.
Am I to accept this and just put in my offer? the debt outstanding relatively small now, being £201.
I feel kind of nervous of the process so any advice would be greatly appreciated.

sourcrates · 22 December 2017 at 12:24PM

bluemonday3 wrote: »

Good morning, as advised I have written to my creditors asking for CCA's prior to offering full & final settlements.
Cabot Financial have responded by saying that I requested this information in 2013 and have just sent a copy of the letter they sent me then and they say they can enforce the debt.
Am I to accept this and just put in my offer? the debt outstanding relatively small now, being £201.
I feel kind of nervous of the process so any advice would be greatly appreciated.

Hi,

Don`t feel nervous, what is it you think Cabot can do ?

Makes no difference how many times you request information from a creditor, they have a duty to respond, as long as a balance is still outstanding on the account.

So Cabot have now shot themselves in the foot, you made a request for information under sec 77/79 consumer credit act 1978 and they have said no basically, they have inadvertently made your debt with them unenforceable now until they do comply.

Congratulations, your debt of £201 to Cabot is now unenforceable in court.

Full and final settlement help thread

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