Full and final settlement help thread

pip10 · 15 April 2015 at 12:31PM

[FONT=&quot]Hi all,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I’m looking for thoughts/advice please.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Background: I’m in a DMP and now have about 11k left to pay. I could make some full and final offers as my parents can lend me 7k to use against the debt. I have been in my plan for a few years now. Initially, I was hounded by the creditors; calls, letters etc. Eventually, this stopped and the interest was frozen. I’ve not heard much from the creditors now for the last couple of years and I pay what I can afford, which is usually around £100 a month.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]My concern is: If I make settlement offers, and they refuse them, is there a possibility anything can change regarding the interest being frozen? I wonder whether I should just carry on paying each month rather than make the offers as I’m concerned about them getting refused. Has anybody any experience with this please?[/FONT]

sourcrates · 15 April 2015 at 12:46PM

Woodypuddy wrote: »

Hi
Could I just check out something on CCA's which I have seen mentioned a lot. If my account was after April 2007 is it pointless me asking for a copy? Was it just accounts prior to this date that different rules applied to. I am on a DMP and if/when I ever have enough to offer F&F thought i had better find out if it possibly applied to me or not.
Many thanks

Hi,
You can CCA any relevant account, no matter when it was opened.

If the other party can't provide the correct paperwork it can still render an account unenforceable (although temporary) until they do produce it.
So always worth doing.

fatbelly · 15 April 2015 at 6:46PM

pip10 wrote: »

[FONT=&quot]Hi all,[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I’m looking for thoughts/advice please.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Background: I’m in a DMP and now have about 11k left to pay. I could make some full and final offers as my parents can lend me 7k to use against the debt. I have been in my plan for a few years now. Initially, I was hounded by the creditors; calls, letters etc. Eventually, this stopped and the interest was frozen. I’ve not heard much from the creditors now for the last couple of years and I pay what I can afford, which is usually around £100 a month.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]My concern is: If I make settlement offers, and they refuse them, is there a possibility anything can change regarding the interest being frozen? I wonder whether I should just carry on paying each month rather than make the offers as I’m concerned about them getting refused. Has anybody any experience with this please?[/FONT]

11k at 100 per month would mean there is still about nine years to go on your plan, which is a long time.

If you borrowed 7k to try F&F there is no guarantee this would be successful. You would then take nearly six years to repay that debt.

As you do not have any money of your own you should explore the insolvency options in the first instance.

The creditors should not reinstate interest whatever you choose

neilneedshelp · 16 April 2015 at 10:15PM

Really good thread and very helpful indeed. I am just a little confused and could do with something clearing up please.

I am currently on a DMP and have been for a few years and I am now about to start paying £200 to 3 creditors up from £150.

12k NRAM
2.2K 1st Credit (Black Horse)
£500 to Moorcroft (Argos)

The problem I have is due to the difference in money owed to NRAM I am making over payments through my DMP and im actually up to date with that debt, they are now charging interest as the money being paid is now more then original agreement. On my credit file this account shows as upto date with a nice green dot.

I am possibly in the position to offer Full and Final at 100% to moorcroft and 1st Credit which are both showing defaulted on my credit report. My plan is to offer full and final to the 2 lower debts then come out of my DMP and over pay my NRAM loan to become debt free quicker.

So my question is I want my accounts with Moorcroft and 1st credit to be fully settled on my report not partially or is there no point as they have defaulted? Do I offer full 100% or go in slightly lower in the hope it becomes settled not partial. They have been defaulted for around 2 years. Once settled does it disapear from your file or stay there for the full 6 years. Im not after credit anymore and I dont want to have it again I just dont like my credit report being RED as I have struggled for long enough.

Sorry for the long essay but im really starting to see the light at the end of a dark dark tunnel and I want to make sure I get it right.

Space182 · 17 April 2015 at 4:51PM

lorraine_9 wrote: »

I've just negociated a full and final with Wescot, had a £9600 balance and got them down to £5000, with further persuasion on my part eventually got them down to £4800 so I was happy with 50% off to be honest. :j

I dealt with a lady called Jayne in Collections, really nice andnot pushy at all if you speak calmly and don't use and aggressive tactic (which I have done before) :mad:

If anyone wants her number at Wescot just email me.

Good luck to everyone, (M&S don't want to know about F&Fs they were VERY rude to me just in case anyone is using them)

Lorraine

Hi lorraine_9,
Nice work. I am going through the same process now and fairly new to all this. Do you know whether you'll get a default notice when you partially settle?

NewcastlePaul · 18 April 2015 at 1:42PM

NewcastlePaul wrote: »

Originally £108k in Debt
10 years of a Stepchange DMP has seen that come down to just over £50k
I applied last year with all my creditors to reclaim PPI and received back over £29k. £4k of that was balance reduction however surprisingly £25k of it was sent in cheques which i put in a bank account.

I have written to all my creditors with an opening offer of 30%
and I have received my first reply today.

Marlin have said they won't accept the offer but will accept the following offers on accounts..

£2,296 (Balance is £4,592) so 50%
£1,527 (Balance is £3,817) so 40%

They also rather than F&F they will report it as
"Partially Settled" with a "Nil" balance outstanding.

Does this seem like a good deal or should I pay the 40% and then offer 40% for the other one or should I increase the offer if they take it as F&F. Also the money is in my mothers account so the signed cheque will be from her bank.

I rent a council flat and have no assets.
I have managed my budget and DMP over the years and not needed or thought about credit and don't plan to ever get any.
That said you never know when your washing machine or fridge is going to pack up so never say never.

I expect to still be on a DMP a maximum of 4 more years.
(less if more creditors take a lower %) . My PPI refunds have effectively meant I'm going to be out of debt 6 years earlier than when I started the claim

What is the implications of Partially Settled with Nil Balance
How long will it stay on my file and how do I word any reply when I send payment and whats to stop them cashing cheque, reducing balance and denying Partial Settlement.

Sent a 30% offer to everyone and it was rejected by all.
should I go back in with 35% (even though the minimum anyone would accept is 40%)

sourcrates · 18 April 2015 at 1:59PM

NewcastlePaul wrote: »

Sent a 30% offer to everyone and it was rejected by all.
should I go back in with 35% (even though the minimum anyone would accept is 40%)

If they will take 40% then go with that, that's a reasonable deal, you will just waste a round of stamps playing letter tennis over this.

Have they all confirmed they will accept 40% to settle ?

NewcastlePaul · 18 April 2015 at 2:56PM

2 x 40%
1 x 50%
1 x 60%
1 x 70%
1 x 90%

Rest just declined

Mamamutz2 · 18 April 2015 at 3:50PM

sourcrates wrote: »

Hi,
You would be best advised to go the CCA request route first, not to would be madness.
If they all produce the paperwork, all well and good, if they don't, then that would put you in a much better position to offer settlement.

As you must be aware, problems with paperwork can still work in your favor, and can lead to a creditor been unable to gain judgement against you in court, always do CCA requests before you make any kind of offer to them.

When you are satisfied you have the best deal, it makes little difference on your method of payment, just make sure you have it in writing that the offer you make is made in full and final settlement, and that you will not be chased for any shortfall.

Hiya. Just wanted a bit more advice if possible.

I already had a CCA from Tesco from when I tried to do a PPI claim. So I went for it.

I owed them - £2107.77 so I phoned and explained my circumstances to them.

Offered £500 (cheeky), after referring they came back and happy to settle for £531!!

I asked for the letter to state full and final etc, nobody else to chase etc.

They have sent this back and Im not sure if it is okay.

Settling your account
We confirm that £531.00 is acceptable to us as full and final settlement of your account, Please make payment within 21 days from the date of this letter.

Once payment has been made the default held against your credit file will be updated to report 'partially satisfied'. This reports that there is no longer an outstanding balance remaining on your account and that the debt has been partially satisfied.

The default will remain on your credit file for 6 years from date of registration.
Etc..Etc..

Im assuming its okay because it says they are accepting as f&f and no longer an outstanding balance. so no one can chase me in future?

Please let me know if this is okay and I can pay it. Also was defaulted over 6 years ago so will this really show up again on my credit file as it has previously dropped off?

Got a bit overconfident then and rang Barclaycard for debt of £798 and offered 200. They said no and would only be able to take £508. Said could never do that only had £200.

Moorcroft also refused my cheeky offer of £1000.00 for a £3746 debt. Didnt say if could take any less, just 'no'.

Only one I havent tried is Robinson Way for £5800.00 debt..Have heard terrible things about them and Im scared :embarasse

Thank you xx

sourcrates · 18 April 2015 at 5:29PM

Mamamutz2 wrote: »

Im assuming its okay because it says they are accepting as f&f and no longer an outstanding balance. so no one can chase me in future?

Please let me know if this is okay and I can pay it. Also was defaulted over 6 years ago so will this really show up again on my credit file as it has previously dropped off?
Thank you xx

Hi,
That looks fine, it will say partially settled, if the debt has fallen off your file, then it will not show up again.
If it did, you would need to complain to have the entry removed.

Good result, well done !!!!

Full and final settlement help thread

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