Full and final settlement help thread

RW01 wrote: »

Hi, I currently have 2 debts with Cabot (MBNA loan and NatWest credit card). They're unable to provide cca's for either (they are both for c£3700). They've today sent me a letter confirming that they can't get cca for MBNA loan however they expect me to still pay the outstanding balance. I don't really want to stop my current payments and get into the point where they keep chasing me (partner is unaware of debts). I may be able to make a settlement figure for one of the debts at the end of this month, bearing in mind I know we'll both be fully aware of the fact that whilst wthey want me to carry on paying it's not enforceable (been paying c£80pm for years as part of my DMP), would anyone have any experience of a settlement figure they might accept?

Try 10% for starters. I know there was a poster on here (I think it was January who reported her success:T) who had a 10% offer accepted on an UE debt as she didn't want to just walk away from it completely. Just make it clear when you contact the holder of the UE one that although it is UE they are most unlikely to win in court even if they were to take it that far to recoup the outstanding debt should you choose not to pay anything at all from now on. There's better ways of putting it but I hope you know what I'm getting at. You should also say that you don't feel easy just walking away from the debt completely and, considering all the things mentioned above, you are prepared to make them a F&F settlement offer of 10%. Also, use example letters found in various places online (I think NEDCAB have one) to make sure that the creditor gives you reassurance (IN WRITING) that they will never in the future chase you for the rest of the debt or pass it on to any other parties to do so. Also, that they will mark your credit file appropriately. That usually means being marked as Partially Settled but that's the best we expect to get. The balance should show as zero.


Having said all that though there are people on here and elsewhere who would advise paying absolutely nothing further on a UE debt for the simple reason that although the creditor may badger you they don't stand any chance of a succcessful court action against you to recoup the outstanding balance. The creditors who can't produce the CCAs should have put collection of the debt on hold until they do.


I hope I've not confused you:o. I hope someone else will be along to maybe add to/contradict what I've advised. The advice I've given is that that has been given to me. I haven't put it into practice yet though as I'm just starting making offers on my bigger debts that are definitely enforceable. I feel happy leaving the UE ones for now;). The longer I don't pay anything the lower the settlement figure they may accept eventually;)

Good Luck:beer: