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Full and Final Settlement Letter
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# 1
FieryBlondeScot
Old 05-10-2008, 3:57 PM
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Default Full and Final Settlement Letter

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





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# 2
Deep In Debt
Old 05-10-2008, 4:26 PM
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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 free 1st July 2013!
Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
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# 3
FieryBlondeScot
Old 05-10-2008, 4:36 PM
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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:
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# 4
GeorgeUK
Old 05-10-2008, 4:45 PM
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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
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# 5
FieryBlondeScot
Old 05-10-2008, 4:55 PM
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cheers george..sure could do with some luck!
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# 6
Deep In Debt
Old 05-10-2008, 5:05 PM
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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.
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Final mortgage payment made on 9.4.2014.
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# 7
mr_ice2005
Old 07-10-2008, 12:08 PM
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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.
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# 8
mr_ice2005
Old 07-10-2008, 2:24 PM
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i have completed my letter and will be offering them £3000 for £7000 worth of debt
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# 9
Diana Prince
Old 07-10-2008, 2:30 PM
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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...
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# 10
FieryBlondeScot
Old 07-10-2008, 4:02 PM
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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
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# 11
mr_ice2005
Old 07-10-2008, 5:26 PM
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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
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# 12
Deep In Debt
Old 07-10-2008, 5:46 PM
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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.
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Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
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# 13
Deep In Debt
Old 07-10-2008, 5:52 PM
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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 free 1st July 2013!
Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
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# 14
mr_ice2005
Old 07-10-2008, 6:36 PM
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Quote:
Originally Posted by Deep In Debt View Post
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.
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?
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# 15
FieryBlondeScot
Old 21-10-2008, 8:34 PM
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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
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# 16
Deep In Debt
Old 21-10-2008, 9:16 PM
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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.
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# 17
Deep In Debt
Old 21-10-2008, 9:23 PM
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Quote:
Originally Posted by mr_ice2005 View Post
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?
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 free 1st July 2013!
Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
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# 18
FieryBlondeScot
Old 22-10-2008, 7:10 PM
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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
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# 19
Hodgehappy
Old 22-10-2008, 7:29 PM
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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
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# 20
Deep In Debt
Old 22-10-2008, 7:37 PM
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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 free 1st July 2013!
Unsecured debts January 2008 - 31k.
Final mortgage payment made on 9.4.2014.
Mortgage free.

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