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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 93
    • fatbelly
    • By fatbelly 24th Aug 17, 6:34 PM
    • 11,234 Posts
    • 8,400 Thanks
    fatbelly
    I'm after a little advice please.

    I have been paying my debts off via a DMP and have paid off one debt, an overdraft, in that time. I started the DMP at the end of 2012 and am currently left with £3000 of debt, paying £200 a month, and have paid off £16000.

    I am about to get some money and was wondering if I am better off just paying the debt off in full or should i make F&F offers on the remaining debt.

    With the money I am about to get I am hoping to use the remainder towards a deposit for a mortgage. Will making F&F offers damage my chances of getting a mortgage more than settleing in full?

    For info one of the debts shows as defaulted 06/13 and the other 06/15. This is despite me entering the DMP in 2012.
    Originally posted by Radar_UK
    From a money point of view, it's better to do F&Fs but the partially settled mark might be viewed less favourably than fully settled.

    You might be able to persuade the creditors to backdate the default as part of the deal. If you can't do that the latest default will show until 2021 and that will definitely have an impact on your mortgage applications.
    • carbootcrazy
    • By carbootcrazy 24th Aug 17, 6:51 PM
    • 4,085 Posts
    • 22,949 Thanks
    carbootcrazy
    fatbelly, you're always able to answer everyone's queries and worries and I wonder if you can give me a bit of advice with one of mine please.

    Currently I have a basic bank account as I'm on a DMP and it's all I could get when I needed to open a 'clean' bank account at its outset. I'm hoping to have a full bank account once the DMP is over and my credit file is healthy and I wondered what steps I could take towards the likelihood of being accepted.


    My worry is one debt I have with AP markers on. They have never defaulted and I'm now down to the last £900 still owing. When I was with Stepchange over 4 years this creditor never put AP markers on, just this last few months when I am self-managing, even though the payment they are getting each month is exactly the same as they were getting before. I could pay this debt off in full today but I suspect the AP markers will stay for another 6 years regardless. Do you think that one blot on a, hopefully, blemish free record when my defaults all fall off my other accounts at the end of 2019/early 2020 will prevent banks viewing me as a desirable bank account holder please?
    Make £10 A Day Challenge 2017. Jan-Aug: £4112.05 Sept: £139.86
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £15841
    . Getting there
    • Max and sasha
    • By Max and sasha 24th Aug 17, 9:55 PM
    • 53 Posts
    • 34 Thanks
    Max and sasha
    Hi carbootcrazy

    I did have one creditor marking my file with AP but I can't remember who but I phoned them up and explained to them that I should have been defaulted and luckily they did I was only paying them £5 pm. I think you should, if you are going to offer full and final settlement make that part of the deal that they remove the ap marking on your credit file, if you don't ask you don't get and if they are desperate for the money hopefully they will.

    Remember to get it in writing that the account will be closed and no one else will pursue you for that money, good luck

    Max
    • fatbelly
    • By fatbelly 24th Aug 17, 10:44 PM
    • 11,234 Posts
    • 8,400 Thanks
    fatbelly
    Currently I have a basic bank account as I'm on a DMP and it's all I could get when I needed to open a 'clean' bank account at its outset. I'm hoping to have a full bank account once the DMP is over and my credit file is healthy and I wondered what steps I could take towards the likelihood of being accepted.
    Originally posted by carbootcrazy
    I'm not sure what extra facility you are looking for over and above a basic account. I don't think I really use any facility over and above what a basic account would have.

    But it's a good ambition to be debt-free and have a clean file.

    To that end, Max's answer is good. Apart from that it's just a case of being on thee electoral roll, having a stable address history and having some product that shows you can manage credit.

    Occasionally, you need to dip your toe into the water and see who will allow you to sign up for the sort of account you want. I'd suggest leaving 6 months between applications though.
    • sourcrates
    • By sourcrates 24th Aug 17, 11:37 PM
    • 11,972 Posts
    • 11,454 Thanks
    sourcrates
    Only real difference between a basic account and a normal current account, is the fact they provide you with an overdraught with a current account, and we all know what bad news they can be !!!!
    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/
    • carbootcrazy
    • By carbootcrazy 25th Aug 17, 7:34 AM
    • 4,085 Posts
    • 22,949 Thanks
    carbootcrazy
    I'm not sure what extra facility you are looking for over and above a basic account. I don't think I really use any facility over and above what a basic account would have.

    But it's a good ambition to be debt-free and have a clean file.

    To that end, Max's answer is good. Apart from that it's just a case of being on thee electoral roll, having a stable address history and having some product that shows you can manage credit.

    Occasionally, you need to dip your toe into the water and see who will allow you to sign up for the sort of account you want. I'd suggest leaving 6 months between applications though.
    Originally posted by fatbelly
    Thanks for the reply, fatbelly

    I fulfil those requirements. Have been on the electoral roll at the same address for 40 years

    Also, I checked Noddle for cards I might be eligible for in an attempt to start rebuilding my credit worthiness. I was given one last December with a credit limit of £500 (a far cry from the bad old days when I had £15000+ each on a fistful of cards and we all know where that got me). I just use it to pay for my monthly petrol (which I have to buy anyway) and scrupulously repay in full every month. I'm not tempted to use it for anything else. It will be interesting to see if my good work results in them offering me a higher credit limit after the first year is up. I definitely DON'T want one but it might prove to me that my reliability with money, albeit on a very small scale, is being recognised

    Only real difference between a basic account and a normal current account, is the fact they provide you with an overdraught with a current account, and we all know what bad news they can be !!!!
    Originally posted by sourcrates
    Thanks for the reply, sourcrates

    I certainly DON'T want an overdraft! Been there, done that
    I want an account where they pay interest if a certain amount is deposited each month (not necessarily to be kept there) and some DDs are taken out. In other words an account that I might get something back from. OH has a couple of accounts with banks that pay him a bit of interest each month. Knowing the banking industry though I expect these sort of accounts are on the way out as they are not too profitable for the banks

    Also, my own bank, Nationwide, has some nice saving offers but they are only eligible to people with their 'regular' accounts and not the basic one
    Last edited by carbootcrazy; 25-08-2017 at 9:08 AM.
    Make £10 A Day Challenge 2017. Jan-Aug: £4112.05 Sept: £139.86
    3-6 Months Emergency Fund Challenge #12: £3733.00/£5000.

    Original Debt: £56804 (@ LBM 02/13). Balance now: £15841
    . Getting there
    • fatbelly
    • By fatbelly 25th Aug 17, 9:04 AM
    • 11,234 Posts
    • 8,400 Thanks
    fatbelly

    I certainly DON'T want an overdraft! Been there, done that
    I want an account where they pay interest if a certain amount is deposited each month (not necessarily to be kept there) and some DDs are taken out. In other words an account that I might get something back from. OH has a couple of accounts with banks that pay him a bit of interest each month. Knowing the banking industry though I expect these sort of accounts are on the way out as they are not too profitable for the banks

    Also, my own bank, Nationwide, has some nice saving offers but they are only eligible to people with their 'regular' accounts and not the basic one
    Originally posted by carbootcrazy
    Virgin has a basic account that pays interest. It's only 0.75% but 'every little helps'

    If you're not actually building up savings then one that pays monthly cashback is better. Again it won't be more than a few quid, but most banks do a variant. You shouldn't need a 'perfect' credit file to get one.
    • farmeress
    • By farmeress 26th Aug 17, 3:06 PM
    • 19 Posts
    • 25 Thanks
    farmeress
    I am currently trying to tackle my debts with F&F offers, and am hoping for some advice regarding an overdraft debt with Barclays of £1460. I have offered them £700 (from family member) as F&F but they have rejected this offer, but state they will reconsider if I am prepared to increase my offer. I have previously increased from £600. It seems like a long drawn out game of chess, but I just want to sort my finances and don't know what my next move should be.
    I have debts totalling almost £13k and I am making offers on all of them.

    My question is:
    should I send another letter increasing my offer to 60% (I allowed some bargaining room) and inform them of my other debts and the amount owed to make them aware that all creditors are receiving pro rata offers? Or just wait a while and try again in few months? (although I just want to be debt free asap)

    Any advice will be appreciated... I'm rubbish at negotiating
    • sourcrates
    • By sourcrates 26th Aug 17, 3:22 PM
    • 11,972 Posts
    • 11,454 Thanks
    sourcrates
    I am currently trying to tackle my debts with F&F offers, and am hoping for some advice regarding an overdraft debt with Barclays of £1460. I have offered them £700 (from family member) as F&F but they have rejected this offer, but state they will reconsider if I am prepared to increase my offer. I have previously increased from £600. It seems like a long drawn out game of chess, but I just want to sort my finances and don't know what my next move should be.
    I have debts totalling almost £13k and I am making offers on all of them.

    My question is:
    should I send another letter increasing my offer to 60% (I allowed some bargaining room) and inform them of my other debts and the amount owed to make them aware that all creditors are receiving pro rata offers? Or just wait a while and try again in few months? (although I just want to be debt free asap)

    Any advice will be appreciated... I'm rubbish at negotiating
    Originally posted by farmeress
    Hi,

    The unfortunate problem with making settlement offers, is that its all about negotiation.

    At least they have said they will consider a higher offer, so they are willing to play ball, you may have to abandon the pro-rata arrangement, and go off piste with some creditors to achieve the settlement you want.

    In your letter, try and emphersise why accepting the offer would be a good idea for them, the money from the family member is only available for a short time, the offer of a lump sum now against monthly payments for years, try to sell it to them.

    Lastly, when you have a deal, get it signed off in writing, word it so they wont be able to chase you for the remainder of the debt, National Debtline have a good template letter on there website for just this purpose.
    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/
    • fatbelly
    • By fatbelly 26th Aug 17, 3:45 PM
    • 11,234 Posts
    • 8,400 Thanks
    fatbelly
    I am currently trying to tackle my debts with F&F offers, and am hoping for some advice regarding an overdraft debt with Barclays of £1460. I have offered them £700 (from family member) as F&F but they have rejected this offer, but state they will reconsider if I am prepared to increase my offer. I have previously increased from £600. It seems like a long drawn out game of chess, but I just want to sort my finances and don't know what my next move should be.
    I have debts totalling almost £13k and I am making offers on all of them.

    My question is:
    should I send another letter increasing my offer to 60% (I allowed some bargaining room) and inform them of my other debts and the amount owed to make them aware that all creditors are receiving pro rata offers? Or just wait a while and try again in few months? (although I just want to be debt free asap)

    Any advice will be appreciated... I'm rubbish at negotiating
    Originally posted by farmeress
    This is why I usually say, at this point, try phoning. You can point out that you have already increased your offer once, and ask them what figure they had in mind as they haven't said that yet.

    Have some rough figures, and their percentages on a scrap of paper and see if you can drive them down from their target figure.

    If you can reach agreement, they must confirm it in writing.

    If not, just say you'll be back in touch later in the year.

    Most times you can have a reasonable conversation. If you do get a numptie at the other end then terminate the call.
    • Radar_UK
    • By Radar_UK 28th Aug 17, 10:18 PM
    • 2 Posts
    • 1 Thanks
    Radar_UK
    I'm after a little advice please.

    I have been paying my debts off via a DMP and have paid off one debt, an overdraft, in that time. I started the DMP at the end of 2012 and am currently left with £3000 of debt, paying £200 a month, and have paid off £16000.

    I am about to get some money and was wondering if I am better off just paying the debt off in full or should i make F&F offers on the remaining debt.

    With the money I am about to get I am hoping to use the remainder towards a deposit for a mortgage. Will making F&F offers damage my chances of getting a mortgage more than settleing in full?

    For info one of the debts shows as defaulted 06/13 and the other 06/15. This is despite me entering the DMP in 2012.
    Originally posted by Radar_UK
    Further to this...

    I have been through my paperwork and have a default notice from the debt showing as defaulted on 06/13 dated 10/12. I also have a default notice from the debt listing default as 06/15 from 12/14.

    It's not a massive difference but shouldn't the defaults be listed from the dates the letters were sent to me?

    I am thinking of settling in full the late on and making a f&f on the other as it'll drop of my credit report much quicker. Does this sound like a reasonable idea? I am assuming the impact of a partial settled is a lot worse than settled...
    • nextavailable
    • By nextavailable 29th Aug 17, 11:03 PM
    • 17 Posts
    • 0 Thanks
    nextavailable
    What are Lowell like with F & F? They're claiming I owe £2700 on a mobile phone contract (£707 airtime debt and £2010 for early termination fee which I think is utterly ludicrous - the contract length was 24 months and apparently I was 9 months in to???).
    • fatbelly
    • By fatbelly 29th Aug 17, 11:50 PM
    • 11,234 Posts
    • 8,400 Thanks
    fatbelly
    What are Lowell like with F & F? They're claiming I owe £2700 on a mobile phone contract (£707 airtime debt and £2010 for early termination fee which I think is utterly ludicrous - the contract length was 24 months and apparently I was 9 months in to???).
    Originally posted by nextavailable
    They do them - I've seen them offer to settle at everything between 10 and 90%. For a recent debt, expect them to want the upper end.
    • nextavailable
    • By nextavailable 30th Aug 17, 8:43 AM
    • 17 Posts
    • 0 Thanks
    nextavailable
    They claim the debt is from 2012. They're going to send me paperwork, well they have requested this from Orange. I do want to clear it, I just don't know how aggressive they are. I do think the figures they have broken down is ridiculous though. I'm quite new to this process so I'm unsure as to what I have to do.
    • moomoo73
    • By moomoo73 1st Sep 17, 1:09 PM
    • 2 Posts
    • 0 Thanks
    moomoo73
    Hello there! I currently have £36k in debt, managed by Stepchange. I'm currently paying off £294 a month, which is all I can afford with my current salary and outgoings. However, I will finish paying off my student loan in less than a year, and plan to put that £150 per month into savings along with any workplace bonuses or extra cash from eBaying, selling holiday etc. I can get to go toward a F+F settlement.

    My current debts look like this:
    CARD 1 - sold to DCA - £8700
    CARD 2 - sold to DCA - £7300
    CARD 3 - sold to DCA - £5700
    CARD 4 - sold to DCA - £5000
    CARD 5 - min payments somehow still being covered by DMP - £4100
    CARD 6 - sold to DCA - £3700

    What would be a sensible minimum amount to aim for in terms of a F+F offer, and do I need to go through Stepchange to do this? I don't want to self-manage at this point in time for a number of reasons, but I'm also aware that it will take ten years to clear my debts at the current rate and this is significantly affecting my mental health as well as my general finances. Would it also be worth waiting until some of these debts have been sold on more than once to DCAs? This may well happen whilst I save anyway - but would it give me a better chance of negotiating?

    I can't enter into bankruptcy or any insolvency proceedings to clear the debt as I rent in the private sector and many landlords will not rent to people in these circumstances - it's not even a case of not passing the credit checks, but it's written into the contract in some private rentals. We have a place we like now, and hope to stay there for as long as we can afford, but I'm conscious that having this much debt on my plate will make it harder to look for another place to live if we go through a letting agency - and I'd like to pay off my debt as soon as I can so that I can start saving toward a flat deposit with the money I'm now paying out toward my debt as I wait for my credit file to get better.
    • DrWatson1
    • By DrWatson1 1st Sep 17, 5:34 PM
    • 106 Posts
    • 64 Thanks
    DrWatson1
    Firstly, CCA your debts. Find out which are enforceable, and which are not.

    Secondly, if you want to negotiate better F&F settlements, tell stepchange you have had your hours cut and do a SOA with them showing you can only afford £5pm, per creditor.

    In my opinion and experience, your creditors will be fairly satisfied to be receiving a regular payment that will see them receive 100% within 10 years. This gives them little/no incentive to offer you a significant discount to settle. If they are receiving £5pm, they may well take a different view.

    Save the money you are no longer paying to each creditor, begin negotiating when your student loans run out, and good luck!
    • moomoo73
    • By moomoo73 1st Sep 17, 5:59 PM
    • 2 Posts
    • 0 Thanks
    moomoo73
    They are all enforceable - taken out since 2012.

    So effectively I should be giving Stepchange false information? I'm not sure how that would work - I work full time in a salaried position and they know what my wages are. I don't know how I could realistically cut £295 per month down to £35.

    Some of my creditors are already receiving a fraction of the monthly payment I should be making, contractually speaking, on the cards.
    • DrWatson1
    • By DrWatson1 1st Sep 17, 6:09 PM
    • 106 Posts
    • 64 Thanks
    DrWatson1
    You can always Increase your outgoings at your next budget review. To be fair, I don't lie about my income, but I do err on the higher end of my expenses. I could probably pay £200pm to Stepchange instead of the £40 I currently pay, but to what end? I'm also trying F&F settlements, and money that I save instead of paying to my creditors increases my leverage while decreasing theirs.
    • farmeress
    • By farmeress 6th Sep 17, 8:31 PM
    • 19 Posts
    • 25 Thanks
    farmeress
    In my bid to negotiate F&F's to clear my debts, I have CCA's Barclaycard (I owe them £6000). I took this credit card out in appx 1989 and have today received a reconstituted agreement... now how do i know if it is enforceable? There is no signature on the agreement and no credit limit. Any advice about how I know if it's enforceable or not?

    Thanks in advance.
    • erskineman
    • By erskineman 13th Sep 17, 9:01 PM
    • 27 Posts
    • 10 Thanks
    erskineman
    Has anyone offered or been offered a F&F by Cabot?
    My old Natwest debt has just been sold to Cabot.
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