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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 88
    • January2015
    • By January2015 17th May 17, 9:47 AM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    Okay, thanks January. My DMP is managed my Stepchange, so perhaps I should just ask the creditor to contact them for the information?
    Originally posted by DrWatson1
    I wouldn't bother. Just say there has been no change to your I&E since they were last provided with a copy by SC and confirm this offer is being gifted by a relative and only available to you if accepted by your creditor.
    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
  • National Debtline
    Hi DrWatson


    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

    Stepchange might be able and willing to negotiate this on your behalf if you ask them. These creditors ought to already know a reasonable amount about your general circumstances and the other debts that you owe based on the correspondence that will already have taken place between them and Stepchange, so I'm not sure why one has written asking for this info all over again - it could simply be that they have sent you a generic template response.


    Dennis
    @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
    • DrWatson1
    • By DrWatson1 17th May 17, 10:39 AM
    • 114 Posts
    • 67 Thanks
    DrWatson1
    I'd prefer to negotiate settlements with them directly. I'm considering going self-managed, and depending how I get on dealing with them directly on this will have a bearing on my decision.

    My settlement offer was made with the "gift from a relative" caveat, and I only wrote to the smaller creditors initially to get a feel for the process before I consider making settlement offers to the larger creditors.

    The letter they sent does feel like a generic letter - it's from Wescott - I don't know if it's just part of their process to fish for further information?
  • National Debtline
    Hi again


    I'd prefer to negotiate settlements with them directly. I'm considering going self-managed, and depending how I get on dealing with them directly on this will have a bearing on my decision.

    My settlement offer was made with the "gift from a relative" caveat, and I only wrote to the smaller creditors initially to get a feel for the process before I consider making settlement offers to the larger creditors.

    The letter they sent does feel like a generic letter - it's from Wescott - I don't know if it's just part of their process to fish for further information?
    Originally posted by DrWatson1

    There's nothing wrong with handling the negotiations yourself if that is your preferred approach.


    The most likely reason for what appears to be a generic letter from Wescot is that it's simply the easiest, cheapest way for the creditor to respond at this stage. You may find you have to reiterate your offer more than once before you get more tailored replies. Setting a deadline for them to agree to the offer after which your relative will withdraw it can often be a useful way of getting their attention - though with that approach you need to be prepared to act on any ultimatum you give the creditor.


    Dennis
    @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
    • redux
    • By redux 17th May 17, 11:06 AM
    • 17,524 Posts
    • 22,385 Thanks
    redux
    One reason for asking for an update to your circumstances might be that nowadays they are obliged, or they say they are, not to unfairly force you into making offers you can't afford, and things like mortgage or rent and utilities are deemed to have priority.

    That said, if they already have information, and you say things are pretty similar, there doesn't seem much point in them insisting.

    What I said in the first paragraph about rules or practice would probably also be why firms seem very resistant to accepting large payment by new credit card, even if the payer insists it has a long 0% balance transfer offer, as this could ultimately be just running people back into more interest-bearing debt.
    Last edited by redux; 17-05-2017 at 11:10 AM.
    • Austinhead
    • By Austinhead 24th May 17, 11:37 PM
    • 157 Posts
    • 107 Thanks
    Austinhead
    I have debt with 2 credit cards and 2 overdrafts, total is around 7k. I have been paying them all back at a much reduced rate with frozen interest for 5 years, my file shows a late payment from June 2011(ish) with the first defaults around 12 months later.
    I now have some money, enough to cover the debts and would like to negotiate a f&f settlement. Does this need to be done in writing? I did speak to both credit card companies around 18 months ago, they offered slightly reduced amounts but said it wouldn't be f&f.
    Is it worth insisting on f&f given the age of the debt? Does the debt go from my file at the point of the initial late payment or the first default?
    Thanks in advance.
    • fatbelly
    • By fatbelly 24th May 17, 11:55 PM
    • 11,541 Posts
    • 8,676 Thanks
    fatbelly
    The entry on your credit file disappears 6 years after the default date.

    Creditors refer to f&f as 'partial settlement' and that is how the file is marked, if the entry still appears.

    Yes, make an offer in writing and see what comes back.
    • Austinhead
    • By Austinhead 25th May 17, 7:38 AM
    • 157 Posts
    • 107 Thanks
    Austinhead
    What difference does it make paying in full or a partial? I'm guessing either way this will be gone in another 12 months?. Or does that piece of information stay on file?

    I am looking to take on the mortgage after a recent separation, and whilst my affordability is fine, I don't want my credit to affect this where possible.
    • fatbelly
    • By fatbelly 25th May 17, 8:02 AM
    • 11,541 Posts
    • 8,676 Thanks
    fatbelly
    What difference does it make paying in full or a partial? I'm guessing either way this will be gone in another 12 months?. Or does that piece of information stay on file?

    I am looking to take on the mortgage after a recent separation, and whilst my affordability is fine, I don't want my credit to affect this where possible.
    Originally posted by Austinhead
    When the entry is gone, it's gone.

    So the advantage of full over partial - not much.
    • carbootcrazy
    • By carbootcrazy 25th May 17, 8:31 AM
    • 4,143 Posts
    • 23,269 Thanks
    carbootcrazy
    fatbelly can you just clarify please whether the account disappears from the credit files 6 years after the date of default or 6 years after the F&F. My defaults date from early summer 2013 but F&Fs ( with a bit of luck that I can get them really low) might not be until around Christmas this year.

    Thanks
    Make 10 A Day Challenge 2017. Jan-Oct: 4500 ish
    Signing off for 2017, already smashed my year's target
    3-6 Months Emergency Fund Challenge #12: 3733.00/5000.

    Original Debt: 56804 (@ LBM 02/13). Balance now: 15841
    . Getting there. Balance so out of date, must update asap!
    • Austinhead
    • By Austinhead 25th May 17, 11:47 AM
    • 157 Posts
    • 107 Thanks
    Austinhead
    From my understanding, it is the date of the first default on the account.
    • carbootcrazy
    • By carbootcrazy 25th May 17, 12:24 PM
    • 4,143 Posts
    • 23,269 Thanks
    carbootcrazy
    From my understanding, it is the date of the first default on the account.
    Originally posted by Austinhead
    Thank you, that's what I'd hoped. Only 2 more years to go then
    Make 10 A Day Challenge 2017. Jan-Oct: 4500 ish
    Signing off for 2017, already smashed my year's target
    3-6 Months Emergency Fund Challenge #12: 3733.00/5000.

    Original Debt: 56804 (@ LBM 02/13). Balance now: 15841
    . Getting there. Balance so out of date, must update asap!
    • fatbelly
    • By fatbelly 25th May 17, 6:19 PM
    • 11,541 Posts
    • 8,676 Thanks
    fatbelly
    fatbelly can you just clarify please whether the account disappears from the credit files 6 years after the date of default or 6 years after the F&F. My defaults date from early summer 2013 but F&Fs ( with a bit of luck that I can get them really low) might not be until around Christmas this year.

    Thanks
    Originally posted by carbootcrazy
    The entries drop off in summer 2019 in your case
    • funkyfish586
    • By funkyfish586 21st Jun 17, 5:32 PM
    • 547 Posts
    • 4,065 Thanks
    funkyfish586
    Hi all, just looking for some advice. Myself and husband have been on a DMP for 6 years with payplan. We have just under 12000 left between us to pay. All but 1 of the defaults have dropped off our credit file with the last one dropping off in December. A family member has genuinely offered to loan us the money to clear it ASAP so we sent off F&F's to all 9 creditors at an offer of 30%. We have received rejections this week from everyone of them. I'm a bit upset as I foolishly thought they would accept given how long we have been making reduced payments to them and the default dates etc but it seems not. Do you think we have left it too late in the journey to offer as there's only 2 years left to pay and whilst reduced payments we have never missed one. Is it worth sending a counter offer? Any help would be greatly received.

    Thank you.
    "Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."
    • sourcrates
    • By sourcrates 21st Jun 17, 5:49 PM
    • 12,472 Posts
    • 11,865 Thanks
    sourcrates
    Hi all, just looking for some advice. Myself and husband have been on a DMP for 6 years with payplan. We have just under 12000 left between us to pay. All but 1 of the defaults have dropped off our credit file with the last one dropping off in December. A family member has genuinely offered to loan us the money to clear it ASAP so we sent off F&F's to all 9 creditors at an offer of 30%. We have received rejections this week from everyone of them. I'm a bit upset as I foolishly thought they would accept given how long we have been making reduced payments to them and the default dates etc but it seems not. Do you think we have left it too late in the journey to offer as there's only 2 years left to pay and whilst reduced payments we have never missed one. Is it worth sending a counter offer? Any help would be greatly received.

    Thank you.
    Originally posted by funkyfish586
    I would CCA them all first.

    See who has compliant paperwork, and who dosent.

    Then when i had those results, i would try again, some may be unenforceable, you wont know if you dont ask.

    You might save your family member some cash.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    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/
    • funkyfish586
    • By funkyfish586 21st Jun 17, 5:57 PM
    • 547 Posts
    • 4,065 Thanks
    funkyfish586
    I would CCA them all first.

    See who has compliant paperwork, and who dosent.

    Then when i had those results, i would try again, some may be unenforceable, you wont know if you dont ask.

    You might save your family member some cash.
    Originally posted by sourcrates
    Thank you Sourcrates. I think that is a good idea! Just to be sure I understand correctly. I just need to send off the CCA template with a 1 postal order for all and do not sign the letter?

    Thank you!
    "Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."
    • fatbelly
    • By fatbelly 21st Jun 17, 6:22 PM
    • 11,541 Posts
    • 8,676 Thanks
    fatbelly
    Thank you Sourcrates. I think that is a good idea! Just to be sure I understand correctly. I just need to send off the CCA template with a 1 postal order for all and do not sign the letter?

    Thank you!
    Originally posted by funkyfish586
    For it to be a legitimate s77-9 request, it has to be accompanied by 1, that's right.

    But I would sign the letter. They don't need to 'lift' your signature to comply with the request so I think the worry about it is overdone.
    • funkyfish586
    • By funkyfish586 21st Jun 17, 9:07 PM
    • 547 Posts
    • 4,065 Thanks
    funkyfish586
    For it to be a legitimate s77-9 request, it has to be accompanied by 1, that's right.

    But I would sign the letter. They don't need to 'lift' your signature to comply with the request so I think the worry about it is overdone.
    Originally posted by fatbelly
    Thank you. I know this is a silly question but are there any repercussions of asking for the CCA's etc? I am so worried about rocking the boat as we haven't had any problems with creditors at all and my main aim is to debt free and i wouldn't want them to pull out of the DMP etc.
    "Knowledge is knowing that a tomato is a fruit, but Wisdom is knowing not to put it in a fruit salad."
    • sourcrates
    • By sourcrates 21st Jun 17, 9:37 PM
    • 12,472 Posts
    • 11,865 Thanks
    sourcrates
    Thank you. I know this is a silly question but are there any repercussions of asking for the CCA's etc? I am so worried about rocking the boat as we haven't had any problems with creditors at all and my main aim is to debt free and i wouldn't want them to pull out of the DMP etc.
    Originally posted by funkyfish586
    Lots of people ask this very question.

    It's your democratic right under the consumer credit act to ask for information about your credit agreement, it's written into law, they cannot refuse, they cannot do anything to you because of this.

    There's no rocking of any boat, they must comply with the act end of !!!!
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    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/
    • fatbelly
    • By fatbelly 21st Jun 17, 9:38 PM
    • 11,541 Posts
    • 8,676 Thanks
    fatbelly
    Thank you. I know this is a silly question but are there any repercussions of asking for the CCA's etc? I am so worried about rocking the boat as we haven't had any problems with creditors at all and my main aim is to debt free and i wouldn't want them to pull out of the DMP etc.
    Originally posted by funkyfish586
    No, it's a right you have for all Consumer Credit Act debts.

    So that's credit cards, loans catalogues, HP...

    But not overdrafts, mortgage shortfalls or mobile phones.
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