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  • FIRST POST
    FieryBlondeScot
    Full and Final Settlement Letter
    • #1
    • 5th Oct 08, 3:57 PM
    Full and Final Settlement Letter 5th Oct 08 at 3:57 PM
    Am finally at the stage of F&F, partly as i am now unemployed. Have been with the CCCS since August 05. Is this the correct letter to send out ? i dont want to screw this up by leaving out something important! I also had the student loans co. in my DMP but as they have refused any negotiation stating it is Govt money, i have left them out of the calculations and it also gives each creditor more money back.

    Dear Sir/Madam
    RE: ACCOUNT NO -**************
    WITHOUT PREJUDICE
    I write concerning the balance outstanding on the above account.
    I am unable to continue to make payment on this account as I have become unemployed due to my contract at work ending (proof can be supplied).
    However in order to assist me with this, my grandmother has offered me a lump sum of 1000 to settle my debts (proof can be supplied). I will divide this equally between my creditors.
    As you can see from the table below I can pay Barclaycard 35.00 and I offer this amount in full and final settlement of this account.
    This offer is made on the understanding that if accepted neither you nor any company associated will take any further action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.
    I also request that if any offer is accepted you will mark any entry on any credit reference agency regarding this account as satisfied in full.
    Payment can be made within fourteen days of receiving your written agreement to this offer.
    I would also like you to note that since beginning my Debt Management Plan with CCCS in August 2005 that I have made consistent payments and also increased payments where possible on several occasions in order to repay my debts.
    I look forward to hearing from you

    **********

    Table of offers worked out according to following full and final settlement offer formula provided by CCCS: Amount owed to creditor x lump sum available/total owed
    Creditor
    Calculation
    Offer




    MBNA
    1118.91x1000/1937
    577.65




    Barclays 1
    194.37x1000/1937
    100.34




    Barclays 2
    179.29x1000/1937
    92.56




    Egg
    379x1000/1937
    195.66




    Barclaycard
    67.81x1000/1937
    35.00




    Total

    1001.21





Page 1
    • Deep In Debt
    • By Deep In Debt 5th Oct 08, 4:26 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    • #2
    • 5th Oct 08, 4:26 PM
    • #2
    • 5th Oct 08, 4:26 PM
    Hi
    I used a letter template from the National Debtline website. They also have info on how to work out what to offer.

    Good luck with it.
    Debt at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
  • FieryBlondeScot
    • #3
    • 5th Oct 08, 4:36 PM
    • #3
    • 5th Oct 08, 4:36 PM
    Thanks, i have been reading through the board and am now wondering if i may have more chance of them accepting the offers if i let the accounts go to DCA's (scary as that is!) as they seem to accept better offers. i am just not sure! i cancelled the DMP 2 weeks ago and the paymetns are meant to go to the creditors on the 5th of each month i think so i have just missed one payment - do they automatically send it to DCA's? :confused:
  • GeorgeUK
    • #4
    • 5th Oct 08, 4:45 PM
    • #4
    • 5th Oct 08, 4:45 PM
    Looks like a good letter FBS. You have everything covered and are showing that the payment is coming from a 3rd party so you can't just make a partial payment with those funds.

    Hope it works and good luck with getting a job.
    After falling off the gambling wagon (twice): 33,600 (24,000+ 9,600) - Original CC Debt: 7,885.91

    Dad Gift 6k Savings & Inv Tst: 2,500
    Loan 10k: 0 Dad 5.5k: 2,270 LTSB: 0 RBS: 0 Virgin 0 Egg 0

    Total Owed: 2,270 (+6k) 11/08/2011
  • FieryBlondeScot
    • #5
    • 5th Oct 08, 4:55 PM
    • #5
    • 5th Oct 08, 4:55 PM
    cheers george..sure could do with some luck!
    • Deep In Debt
    • By Deep In Debt 5th Oct 08, 5:05 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    • #6
    • 5th Oct 08, 5:05 PM
    • #6
    • 5th Oct 08, 5:05 PM
    I waited until a couple of my debts were passed to DCA's. They buy the debts for peanuts so you have a better chance of negotiating a decent F&F settlement.

    Usually, creditors will pass the debt on after a few months of non payment. I stopped paying one of my creditors as they were lumping on charges and interest and refusing to accept my dmp and I waited until it was passed on to a DCA. Unfortunately, it took them 6 months before they did but at least it left me in a better position in the end.

    Good luck.
    Debt at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
  • mr_ice2005
    • #7
    • 7th Oct 08, 12:08 PM
    • #7
    • 7th Oct 08, 12:08 PM
    i am in a process of writing a letter to a creditor explaining i am being made redundant and will offer them 50% of outstanding balance (by selling my only asset which is a car worth £3000).

    If i was to offer them say 35%-40% of outstanding balance will they think i am taking the biscuit? Is there a rule of thumb in this sort of case?

    Ofcourse i will provide all the evidence i have (of redundancy and value of car) as my aim is not to pull a fast one on them but to get myself out of debt. I am currently with CCCS with 10k worth of loans (excluding 10k of student loans)

    thanks
    Last edited by mr_ice2005; 07-10-2008 at 12:21 PM.
  • mr_ice2005
    • #8
    • 7th Oct 08, 2:24 PM
    • #8
    • 7th Oct 08, 2:24 PM
    i have completed my letter and will be offering them 3000 for 7000 worth of debt
  • Diana Prince
    • #9
    • 7th Oct 08, 2:30 PM
    • #9
    • 7th Oct 08, 2:30 PM
    Can I put names of DCA's on here? Just so people might be able to help with what kind of percentage they're likely to take!
    Shoot for the moon. If you miss, you'll land among the stars...
    Oct NSD 2/5
  • FieryBlondeScot
    well i have just phoned them all up to get latest balances and so far barlcays said they would accept 80 on a balance of 126, and MBNA said i have to ring them and do an income/expenditure sheet then they will discuss figures with me. I am just going to send them the same letters i am sending everyone else and dividing as follows

    barclays owe 126 will offer 69
    barclaycard owe 26 will offer 14
    mbna owe 953 will offer 525
    egg owe 344 will offer 190

    this is based on a lump sum available of 800 pounds - sending by recorded delivery today
  • mr_ice2005
    FieryBlondeScot did you do what u were thinkin about waiting til ur debts went to a debt collection agency? Becos i am thinkin of negotiating with Egg directly
    • Deep In Debt
    • By Deep In Debt 7th Oct 08, 5:46 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    Hi
    I waited until my debts were passed onto DCA's. The original creditors would accept nothing less than 70% but I cleared 2 debts that had been passed to DCA's at 45% and 55%. DCA's buy debts for peanuts so they are easier to negotiate with and get better deals.

    Please make sure that you get the offers in writing before sending any money and that your credit file will be marked as "satisfied" and that neither they nor any third party or associate will chase you for the remainder at a later date and that you are released from any further liaibilty. This is important. I had my fingers burnt on this one a couple of years back.

    Good luck.
    Debt at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
    • Deep In Debt
    • By Deep In Debt 7th Oct 08, 5:52 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    Mr_ice,
    I personally wouldn't let creditors know how much money you have available as they will want the whole lot. Just say that you have some money available and can offer xxxx.

    I got made redundant also after 12 years at my company and got a lump sum payment. however it wasn't enough to clear my debts in full so I have offered F&F on my debts. I have not told creditors how much lump sum I have got.

    Good luck with it.
    Debt at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
  • mr_ice2005
    Mr_ice,
    I personally wouldn't let creditors know how much money you have available as they will want the whole lot. Just say that you have some money available and can offer xxxx.

    I got made redundant also after 12 years at my company and got a lump sum payment. however it wasn't enough to clear my debts in full so I have offered F&F on my debts. I have not told creditors how much lump sum I have got.

    Good luck with it.
    Originally posted by Deep In Debt
    Hey deep-in-debt

    I am only telling them i have a 3k worth car and that is all i have to give (once sold). I figured if i be as honest and truthful to them then they might just accept my offer. Wouldnt you agree?

    When people say let it go to a debt collecting agency. This happens if i completely stop paying the creditors right? Wont i need to stop the CCCS Debt management Plan i have with them? If it goes to a DCA wont this have an even worse effect on my credit file?
  • FieryBlondeScot
    so 2 weeks on i have today recieved acknoweldgemnt of my letter to barclaycard offering F&F, and they ask that i ring them to discuss.....

    1. i thought they would write and say they accept/dont accept
    2. does anyone know how best i should handle the said phone call?

    no replies as yet from barclays or mbna or egg
    • Deep In Debt
    • By Deep In Debt 21st Oct 08, 9:16 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    Hi
    Just again from personal experience - don't ring them.

    Write to them again re stating your offer is F&F and that if they are not prepared to accept it, you will offer it to another creditor and say you only have the money for a limited time (or words to that affect). If you phone them, they will try and get more.
    Debt at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
    • Deep In Debt
    • By Deep In Debt 21st Oct 08, 9:23 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    Hey deep-in-debt

    I am only telling them i have a 3k worth car and that is all i have to give (once sold). I figured if i be as honest and truthful to them then they might just accept my offer. Wouldnt you agree?

    When people say let it go to a debt collecting agency. This happens if i completely stop paying the creditors right? Wont i need to stop the CCCS Debt management Plan i have with them? If it goes to a DCA wont this have an even worse effect on my credit file?
    Originally posted by mr_ice2005
    Sorry, I didn't reply mr_ice.

    I still wouldn't tell them! Believe me, they will still want you to pay the full amount. Creditors have no morals and don't care about honesty. They are not honest with you, so why should you be with them?

    No it doesn't happen if you completely stop paying. Many creditors will pass debts on to DCA's because it costs them more to collect the debt than you are paying and creditors like to "get rid" of bad debts from their books. The effect will be no worse on your credit file if it goes to a DCA - if you are on a dmp, your credit is shot regardless of who chases it. So, no don't stop the CCCS payments.
    Debt at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
  • FieryBlondeScot
    thanks for reply! i think i will write to them all again stating that acceptance must be in writing to me and hope for the best
  • Hodgehappy
    I've been on a dmp with payplan for 6 mths MBNA have been wanting me to pay more (as expected) they have offered me to settle (on 2 C/cards I owe them 22k) 10k to clear both debts so slightly more than 50% that they said they will accept off me. Only wish I could pay this, sounds a great deal from them
    • Deep In Debt
    • By Deep In Debt 22nd Oct 08, 7:37 PM
    • 6,813 Posts
    • 8,231 Thanks
    Deep In Debt
    Hodge
    Why not write to them and offer them what you can afford (45%) and take it from there? What have you got to lose by trying?

    Say that it is all you can afford and you have been lent the money for a limited time for the purpose of clearing the debt and if they are not willing to accept it then then you offer it to another creditor or that the money will be withdrawn. Give them say, 21 days to accept? Might be worth a try?

    After all, they try it on with us - why not try it back?

    From what I have learnt, MBNA are in a bit of a financial pickle at the moment so I wouldn't be surprised if they accept your offer.

    Good luck.
    Debt at start of journey in 2008- 31,000
    Finally debt free July 2013.
    Still enjoy budgeting and saving money as much as I can
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