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  • FIRST POST
    • Weggy
    • By Weggy 19th Nov 05, 10:20 AM
    • 463Posts
    • 98Thanks
    Weggy
    Full and final settlement help thread
    • #1
    • 19th Nov 05, 10:20 AM
    Full and final settlement help thread 19th Nov 05 at 10:20 AM
    Hi all

    Am currently trying to negotiate with debt collection agencies, to get them to accept a full and final settlement figure. Does anyone have any tips on persuading them to lower their demands?

    Thanks

    Last edited by MSE Archna; 21-06-2006 at 7:41 AM.
Page 87
    • January2015
    • By January2015 26th Apr 17, 3:20 PM
    • 1,688 Posts
    • 4,585 Thanks
    January2015
    Hi
    I have posted on the DMP mutual support thread but thought I'd update here as not everyone looking for F&F info reads that thread. We've recently settled an unenforceable MBNA debt for approx 12k for 10%, i.e. For 1.2k. our credit reference files have been updated to show settled in full and all records of default and late payments have been removed. CRA files now show account well managed and all monthly status recording he are lovely and green and marked OK every month
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    Xmas 2017 1 p/day challenge No. 20 - 420/730
    Make 10 p/day Feb 74.31, Mar 664.37 Apr 40
    • Weakmoments
    • By Weakmoments 28th Apr 17, 7:42 AM
    • 32 Posts
    • 26 Thanks
    Weakmoments
    Hi January that's fabulous news. I've received the cca from PRA group and they've said the debt is unenforceable. Did you offer them 10% straight away or did you have to negotiate.
    • Twins
    • By Twins 28th Apr 17, 11:54 AM
    • 201 Posts
    • 737 Thanks
    Twins
    Hello everyone,

    Just wondering, how long does it normally take for creditors to respond to F&F offers? I've sent of 3 and out of them only heard back from 1 which was declined. The letters were sent around 3 weeks ago. Is it normal for them to take their time to reply?

    Thank you!
    LBM April 2011 Debt 30,800 now in DMP land
    Self Managing my DMP May 2017

    Slowly chipping away at my debts: April 17 17,388
    Debt free date: Jan 2023 Dec 2022. I will be free
    2 Savers club #39
    • January2015
    • By January2015 28th Apr 17, 12:01 PM
    • 1,688 Posts
    • 4,585 Thanks
    January2015
    Hello everyone,

    Just wondering, how long does it normally take for creditors to respond to F&F offers? I've sent of 3 and out of them only heard back from 1 which was declined. The letters were sent around 3 weeks ago. Is it normal for them to take their time to reply?

    Thank you!
    Originally posted by Twins
    If you are writing to debt collection agencies who are managing the debt for the original creditor then they have to contact the original creditor with your offer. This can take up to 6 weeks (in my experience). Even getting a response directly from an original creditor can take up to a month - I think your offer gets passed around the department until it reaches someone who can make a decision I can't think why else they take so long to respond to letters but they do.

    It is frustrating, but you just need to sit and wait, you will get a response.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    Xmas 2017 1 p/day challenge No. 20 - 420/730
    Make 10 p/day Feb 74.31, Mar 664.37 Apr 40
    • January2015
    • By January2015 28th Apr 17, 12:03 PM
    • 1,688 Posts
    • 4,585 Thanks
    January2015
    Hi January that's fabulous news. I've received the cca from PRA group and they've said the debt is unenforceable. Did you offer them 10% straight away or did you have to negotiate.
    Originally posted by Weakmoments
    They offered me the 10% - however, if you are happy to settle at 10% then I would write and offer them that and ask the account be marked as settled in full on your credit reference file.

    Of course - you could completely ignore them and not pay anything. The debt is unenforceable - you still owe it, but they cannot make you pay it We chose to settle and get the matter over and done with, but we could have just ignored them and kept our money.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    Xmas 2017 1 p/day challenge No. 20 - 420/730
    Make 10 p/day Feb 74.31, Mar 664.37 Apr 40
    • Learning2Budget
    • By Learning2Budget 30th Apr 17, 9:17 AM
    • 1,092 Posts
    • 4,936 Thanks
    Learning2Budget
    Hi Twins. Took between 4 and 8 weeks for mine to be sorted. 8 weeks is excessive but we complained and they finally accepted. L2B.x
    LBM 2008 45,091.23 eek: now 7889 Debt free date 18/07/2018
    • carbootcrazy
    • By carbootcrazy 1st May 17, 8:56 PM
    • 3,640 Posts
    • 20,263 Thanks
    carbootcrazy
    Hi everyone

    I am on a dmp with baines and ernst and I have finally plucked up the courage to dump them, my wife and I are going to do our own dmp saving us 50 per month that baines and ernst were charging us,

    1, How do I go about ditching them, is there anything specific we should state in the letter?

    2, What should we expect back from them and what reaction do you think we'll get from them?

    3, What should we expect from our creditors, there are 7 of them?

    Thank you and I look forward to any advice we recieve
    Originally posted by Max and sasha

    Welcome, Max and sasha

    I'm not a regular on this thread, I've just wandered over from the DMP Mutual Support thread as I was looking for some specific F&F information.

    There are lots of very helpful and wise people who post on both threads but as your queries are more DMP-related it might be worth your while to repost it on the DMP support thread. Possibly more chance of getting a quick response there.

    There are already about 41 pages of posts on the current DMP Mutual Support thread but this links to the first page. Read it through it all if you have the time, you may find a lot of your worries have been talked about by others who are at a similar stage as you.


    http://forums.moneysavingexpert.com/showthread.php?t=5623951


    Incidentally, although a lot of us are now self-managing our DMPs (thanks to the confidence and strength to do so after the great advice given by other posters) it's not always right for everyone. If you feel you'd still like to still have the help of a company through your DMP journey you could always ditch Baines and Ernst (our advice is NEVER to pay for DMP management) and go with Stepchange or Payplan, both of which are totally FREE.

    I'll maybe see you over on the DMP support thread
    Last edited by carbootcrazy; 01-05-2017 at 9:28 PM.
    Make 10 A Day Challenge 2017. Jan-Apr: 1240.02. May: 380.96
    3-6 Months Emergency Fund Challenge #12: 1200.00/3000. This is such hard going but I will do it.

    Original Debt: 56804 (@ LBM 02/13). Paid : 32316. Balance: 24488
    • Learning2Budget
    • By Learning2Budget 2nd May 17, 3:56 PM
    • 1,092 Posts
    • 4,936 Thanks
    Learning2Budget
    Hurrah. Dmp completed today. I still have 5k of debt but that is owed to a friend. After nearly 10 years i have completed my dmp!
    Now to crack on and pay my last 5k.
    Feeling very happy.
    L2B.x
    LBM 2008 45,091.23 eek: now 7889 Debt free date 18/07/2018
    • gemmacrew
    • By gemmacrew 6th May 17, 2:07 PM
    • 1 Posts
    • 0 Thanks
    gemmacrew
    Should I Settle?
    Hi.
    First post so apologies if I'm not following protocol but I have a question re a settlement offer:

    In 2013 I lost a well paid job having credit card balances of 15k (amex) and 12k (mbna) which I'd been servicing for several years. I got another job paying half the money and arranged payment plans with the 2 card companies of 300pm each. Amex continued to add interest at 180pm and did not record a default. MBNA froze the interest and recorded a default.

    In 2016 after 3 years of payments I again became unable to make the payments so just stopped. MBNA was down to about 4.5k. Amex was still at 11k.

    MBNA occasionally contact me asking if I'm interested in settling. Amex have been making settlement offers of 4,5k and now 3.3k.

    If I take up the Amex offer and pay over 2 years then after 2 years they will record the debt as partially settled and this will then remain on my file for another 6 years. So, 8 years from now my file will be clear.

    My question is: is there any advantage to me agreeing to the settlement offer and locking in 8 years of bad credit - or do I just tell them I'm not paying and lock in 6 years? I don't imagine nor should I be attempting to get credit for the foreseeable future as I'm clearly not capable of managing it!

    I realise morally I should be making the settlement but for the best part of 20 years I ploughed thousands into the Amex coffers on a 30% interest rate and kinda feel a bit pee'd off that they didn't offer to freeze the interest and suspend the account when I initially got into trouble - which would have meant just another 3 years before the defaults leave the credit file.

    Any advice greatly appreciate - and yes I know - it's my fault and I should be paying the debt.
    • sourcrates
    • By sourcrates 6th May 17, 3:20 PM
    • 10,565 Posts
    • 10,350 Thanks
    sourcrates

    My question is: is there any advantage to me agreeing to the settlement offer and locking in 8 years of bad credit - or do I just tell them I'm not paying and lock in 6 years? I don't imagine nor should I be attempting to get credit for the foreseeable future as I'm clearly not capable of managing it!
    .
    Originally posted by gemmacrew
    Your only problem would be if the card companies take legal action action against you, which if you stop paying altogether and ignore them, is quite likely.
    Last edited by sourcrates; 06-05-2017 at 6:25 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • January2015
    • By January2015 6th May 17, 6:10 PM
    • 1,688 Posts
    • 4,585 Thanks
    January2015
    Hi.
    First post so apologies if I'm not following protocol but I have a question re a settlement offer:

    In 2013 I lost a well paid job having credit card balances of 15k (amex) and 12k (mbna) which I'd been servicing for several years. I got another job paying half the money and arranged payment plans with the 2 card companies of 300pm each. Amex continued to add interest at 180pm and did not record a default. MBNA froze the interest and recorded a default.

    In 2016 after 3 years of payments I again became unable to make the payments so just stopped. MBNA was down to about 4.5k. Amex was still at 11k.

    MBNA occasionally contact me asking if I'm interested in settling. Amex have been making settlement offers of 4,5k and now 3.3k.

    If I take up the Amex offer and pay over 2 years then after 2 years they will record the debt as partially settled and this will then remain on my file for another 6 years. So, 8 years from now my file will be clear.

    My question is: is there any advantage to me agreeing to the settlement offer and locking in 8 years of bad credit - or do I just tell them I'm not paying and lock in 6 years? I don't imagine nor should I be attempting to get credit for the foreseeable future as I'm clearly not capable of managing it!

    I realise morally I should be making the settlement but for the best part of 20 years I ploughed thousands into the Amex coffers on a 30% interest rate and kinda feel a bit pee'd off that they didn't offer to freeze the interest and suspend the account when I initially got into trouble - which would have meant just another 3 years before the defaults leave the credit file.

    Any advice greatly appreciate - and yes I know - it's my fault and I should be paying the debt.
    Originally posted by gemmacrew
    Have you sent CCA requests to check whether these debts are unenforceable ? Debts that old are more likely to be unenforceable than more recent (post 2008 debts)
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    Xmas 2017 1 p/day challenge No. 20 - 420/730
    Make 10 p/day Feb 74.31, Mar 664.37 Apr 40
    • vaper
    • By vaper 6th May 17, 8:38 PM
    • 31 Posts
    • 10 Thanks
    vaper
    Hi January, are there any template letters for this? Some of our credit cards are over 20 years old so it might be worth me having a go. Can I still do this after the DMP has been set up though?
    Thanks
    • January2015
    • By January2015 6th May 17, 10:34 PM
    • 1,688 Posts
    • 4,585 Thanks
    January2015
    Hi January, are there any template letters for this? Some of our credit cards are over 20 years old so it might be worth me having a go. Can I still do this after the DMP has been set up though?
    Thanks
    Originally posted by vaper

    Template letter here.

    You can do this at any time - regardless of being in a DMP. We had been in our DMP a year before we took the plunge to CCA our debts. Only one was unenforceable....but that was almost 12k worth
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    Xmas 2017 1 p/day challenge No. 20 - 420/730
    Make 10 p/day Feb 74.31, Mar 664.37 Apr 40
    • Sally-Lou
    • By Sally-Lou 15th May 17, 3:06 PM
    • 7 Posts
    • 9 Thanks
    Sally-Lou
    Hi. This is my first post.
    I owe 25k to 3 creditors. I just have phoned 2 of them for a settlement offer after being on a DMP for 2.5 years. I explained that my brother had offered me a small sum of money if I could clear a whole debt.
    PRA want 11,500 of the 15,500 I owe, and Barclaycard want 8500 of the 9500 I owe... I don't have anywhere near these amounts, ideally I wanted to pay a max of 50% to each.
    Any advice of what to do next? If I wait some time, do they come back with another offer?
    • fatbelly
    • By fatbelly 15th May 17, 6:30 PM
    • 10,674 Posts
    • 7,969 Thanks
    fatbelly
    Hi. This is my first post.
    I owe 25k to 3 creditors. I just have phoned 2 of them for a settlement offer after being on a DMP for 2.5 years. I explained that my brother had offered me a small sum of money if I could clear a whole debt.
    PRA want 11,500 of the 15,500 I owe, and Barclaycard want 8500 of the 9500 I owe... I don't have anywhere near these amounts, ideally I wanted to pay a max of 50% to each.
    Any advice of what to do next? If I wait some time, do they come back with another offer?
    Originally posted by Sally-Lou
    Write using the standard letter in this factsheet

    https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx

    offering 35%, and see what they put in writing.

    They clearly will do a deal, as the 75% and 90% offers show. You're just discussing how much.
    • DrWatson1
    • By DrWatson1 16th May 17, 12:25 PM
    • 90 Posts
    • 54 Thanks
    DrWatson1
    Fairly quick question. I have written to my creditors offering F&F settlements. One has written back asking for Income and expenditure and details of what I owe elsewhere. I owe around 60k to 8 creditors, and am currently paying 5pm to each of them on a DMP.

    Are there any advantages or disadvantages of providing this information - particularly relating to my other debts? Might they be willing to settle for a lower figure if they see how much I owe elsewhere??
    • fatbelly
    • By fatbelly 16th May 17, 6:20 PM
    • 10,674 Posts
    • 7,969 Thanks
    fatbelly
    It depends on what information a full statement is going to reveal.

    They want to check if you could be making more substantial monthly payments, whether you work (attachment to earnings?) or own a house (charging order?)
    • DrWatson1
    • By DrWatson1 17th May 17, 8:39 AM
    • 90 Posts
    • 54 Thanks
    DrWatson1
    As I'm already paying back 5pm, would they go for a court order? I earn around 1200 a month, and while I could "afford" to pay more back, I'm obviously not squirrelling thousands away.

    Also, I've seen general advice offered here where they wouldn't go for a court order if you are paying a reasonable amount back as it costs them money and they don't get any extra in return - is this correct?
    • January2015
    • By January2015 17th May 17, 8:44 AM
    • 1,688 Posts
    • 4,585 Thanks
    January2015
    Fairly quick question. I have written to my creditors offering F&F settlements. One has written back asking for Income and expenditure and details of what I owe elsewhere. I owe around 60k to 8 creditors, and am currently paying 5pm to each of them on a DMP.

    Are there any advantages or disadvantages of providing this information - particularly relating to my other debts? Might they be willing to settle for a lower figure if they see how much I owe elsewhere??
    Originally posted by DrWatson1
    I would just write back and advise that the funds for the F&F are being gifted to you by a relative, and that they will only release the funds to you if the F&F is accepted as they are doing this to support you to clear your debts. I wouldn't send an I&E unless it made it clear you cannot afford more than your low token payment.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    Xmas 2017 1 p/day challenge No. 20 - 420/730
    Make 10 p/day Feb 74.31, Mar 664.37 Apr 40
    • DrWatson1
    • By DrWatson1 17th May 17, 8:56 AM
    • 90 Posts
    • 54 Thanks
    DrWatson1
    Okay, thanks January. My DMP is managed my Stepchange, so perhaps I should just ask the creditor to contact them for the information?
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