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    • Indebtandwanttobefree
    • By Indebtandwanttobefree 1st Aug 16, 6:46 PM
    • 1Posts
    • 0Thanks
    Indebtandwanttobefree
    Full and Final Settlement
    • #1
    • 1st Aug 16, 6:46 PM
    Full and Final Settlement 1st Aug 16 at 6:46 PM
    I have got a query that I would like some advice for. I have an overall debt of £10,895.41, owed to 4 creditors (2 of which are Cabot). I have been paying them back at £1.00 per month each for the last 5 years. I am in no financial situation to increase the payments for the foreseeable future. My debts are as follows -
    £2373.11 - Cabot (Lloyds Credit Card)
    £2063.49 - Apex (Lloyds O/D)
    £4652.46 - Cabot(Lloyds loan)
    £1806.35 -Arc Europe (MBNA Credit Card)

    Recently Cabot wrote to me offering me to pay 30% of my debt of £2373.11 to them, to update my record as 'partially settled' with a nil balance outstanding. Once I have made the payment they will send me a letter of confirmation that the account has been cleared - this offer was for 14 days running from 16th July - 30th July 2016.

    I contacted Step Change for advice to ask for advice and they said I was eligible for a debt relief order. I replied that I would rather offer all debts a Full and Final Settlement as a relative has offered to loan me £2500 - £3000 to clear my debts. The response was that that amount was not enough to offer for F and F settlements, only option is DRO. I then asked about accepting Cabot's offer of 30%. They replied saying that it was not good as it would show me to be discriminatory against my other creditors. I thought that it would be good to at least get rid of one of my debts.

    I then rang up Cabot asking whether they would consider 30% of my loan, as a F and F, they said no but they would accept 80% or if I sent a financial statement maybe more. I then said about the 30% offered that I couldn't raise it before the deadline. They said that this was ok and that it could be extended. But I am worried what situation it will lead me to. After agreeing to payoff one of the debts out of 2 owed to the same creditor? Are they going to backtrack saying that the offer has expired and money is taken to just pay off some of the debt owed not clearing the balance? I am tying myself in knots with this.

    Do I -

    1. Do I accept the 30% offer, would this be counted as discriminatory - if so what would happen?
    2. Should I then write to the other creditors offering 15% to all i.e. start low
    3. Should I write to all creditors including Cabot who made me an offer, asking them for a 15% amount.

    Please any advice on what I should do, would be very appreciated
Page 2
    • Dorsetdave
    • By Dorsetdave 30th Nov 16, 10:00 AM
    • 13 Posts
    • 3 Thanks
    Dorsetdave
    Have you done the step 1 :
    Request all CCA agreements + deed of assignment (signed) .

    We have seen £25,000 reduced to £0 in one letter when they admitted they had neither the CCA documents or the deed of assignment.
    Originally posted by Marktheshark
    Hi Marktheshark

    I haven't done this. I take it I've not checked a certain forum for info? Do you have a link? These debts are genuine, I'll put my hands up to that, they're all loans or overdrafts.

    I'm on a DMP with SC. I would have thought they'd checked out any legal angles? All advice appreciated.
    • StevenHendy94
    • By StevenHendy94 30th Nov 16, 11:11 AM
    • 19 Posts
    • 4 Thanks
    StevenHendy94
    From my experience (I'm no expert) I would F&F what you can and use the money saved in repayements to repay the others.

    However, i would say if you are good at it and lucky, you could settle all your debts in the region of 25-35% so say roughly the amount you have. the key is to be persistent. Write and call them, again dont agree till it is in writing though.

    Also a tip that worked for me was, say you can't make the repayment (cause if its too much you actually can't) then ask for them to remove your telephone number etc. They will panic and send out a lower settlement offer after a week or two, trust me!

    But don't go for the other options. they can have longer effects on your credit file. Where possible, I'd say always f&F!

    I have example off my F&F Settlements on my thread to give you an idea of the settlements that are possible....
    http://forums.moneysavingexpert.com/showthread.php?p=71692647&posted=1#post71692647


    Hope this helps!

    And I am aware that my tactics are not exactly the most offical or ethical. But Needs must!
    • Dorsetdave
    • By Dorsetdave 30th Nov 16, 11:34 AM
    • 13 Posts
    • 3 Thanks
    Dorsetdave
    Thanks for the advice. I've had a look at your link and I'll follow it a bit further later on. I take it you chased all these payments yourself? I'm with SC and it's just a bit annoying that they don't seem to like people making one off payments. However I think I may now try and settle them all myself (as you suggest).

    Sometimes when the crap hits the fan you don't have enough "Energy" to solve these problems, a few years down the line and I feel a lot more confident to start communicating with these people. One of my accounts has just been sold on, Again, do you know if this effects how much the new DCA will accept? I've read that the longer you have the debt the less they expect to receive for it?

    Thanks for the support.
    • fatbelly
    • By fatbelly 30th Nov 16, 6:38 PM
    • 11,773 Posts
    • 8,867 Thanks
    fatbelly
    £20573 of debt and 11 years to pay off, so approx. £150 per month.

    Is F&F an option? I got the impression you did not have a lump sum available and were reliant on your mum.

    An IVA is an option at that level of payments (for 5 years if non-homeowner, 6 years if homeowner).

    Or, if not a homeowner, maybe bankruptcy where you would get an IPO of £150 x 36 months?

    Both options would affect your credit, and really should have been done earlier when the defaults were fresh.
    • sourcrates
    • By sourcrates 30th Nov 16, 7:35 PM
    • 13,034 Posts
    • 12,342 Thanks
    sourcrates
    And I am aware that my tactics are not exactly the most offical or ethical. But Needs must!
    Originally posted by StevenHendy94
    I disagree, negoatiion, bartering, call it what you will, is common place in most countries of the world.

    You never pay the advertised price, as we all know there's always some wiggle room.

    In some Arab countries they take offence if you do not barter.

    What you are doing is applying common sense, nothing more !!
    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/
    • StevenHendy94
    • By StevenHendy94 1st Dec 16, 10:37 AM
    • 19 Posts
    • 4 Thanks
    StevenHendy94
    Thanks for the advice. I've had a look at your link and I'll follow it a bit further later on. I take it you chased all these payments yourself? I'm with SC and it's just a bit annoying that they don't seem to like people making one off payments. However I think I may now try and settle them all myself (as you suggest).

    Sometimes when the crap hits the fan you don't have enough "Energy" to solve these problems, a few years down the line and I feel a lot more confident to start communicating with these people. One of my accounts has just been sold on, Again, do you know if this effects how much the new DCA will accept? I've read that the longer you have the debt the less they expect to receive for it?

    Thanks for the support.
    Originally posted by Dorsetdave
    Paying off debts is much more stressful than being in debt i found! as strange as it sounds! Trying to hunt down who owns the debt, then if you have all the paperwork to make the payment. I was so eager to get everything paid off, I twas a nightmare having to wait for everything to get sorted. I'm still waiting for a new DCA contacting me, its been 8 weeks since it was moved on and i have no idea who too still!

    I chased them all myself, I was looking into step change but i feel they are too eithical, wanting a repayment of the full amount, or as close to it. For me that would have meant many more years of debt which i wasn't willing to do. Totally agree with you. But go for it yourself! You can do it!

    Thats good news for you, more it gets sold and passed on the better. Make sure it is sold and not just collected on behalf off. Cause if it has been actually "Sold" you could settle for crazy low amount - they only pennies in the pound for your debt so are just wanting an easy profit.


    All the best of luck to you! you can do it! sit down with a coffee, a note pad, and your computer/phone and get cracking.

    You might even start to enjoy it in a weird way, its like a hobby, gives you that rush every time you pay one off!

    • Dorsetdave
    • By Dorsetdave 1st Dec 16, 7:13 PM
    • 13 Posts
    • 3 Thanks
    Dorsetdave
    Your sums are correct Fatbelly my DMP is for £151 per month. I too wondered why SC hadn't recommended either bankruptcy or IVA at the initial start of my DMP. Now I'm about 8 years down the line I don't really want to totally trash my credit rating at this stage of the game. Initially my payments were only £100 per month perhaps that had something to do with it?

    I've done a few sums and could get about £6000 together. Four of my accounts are with Cabot (who offered me a 30% deal on one of them). The last ones just been sold on by Cabot. If they'd accept a similar offer on the other accounts I might be able to get a Partially Paid deal on them all. I understand F&F requires the total owed amount to be repaid.

    Another reason for not wanting the IVA or Bankruptcy is that I'm looking to try and get a mortgage next year.
    • Dorsetdave
    • By Dorsetdave 1st Dec 16, 7:24 PM
    • 13 Posts
    • 3 Thanks
    Dorsetdave
    Thanks for the positive advice SH. Agree about SC and their ethical approach. They certainly helped keep the DCA from hassling me at the beginning and have my utter respect. BUT..... sometimes they do make some strange suggestions.

    One advantage of being with SC is that I do know who owns all my debts and I'll seriously consider your advice to negotiate with them. I may be able to get £6000 together and doing the sums it works out at a 30% offer on all the accounts.

    Congratulations on managing to sort your debts out. I can appreciate the Buzz that must have given you.
    • StevenHendy94
    • By StevenHendy94 7th Dec 16, 1:11 PM
    • 19 Posts
    • 4 Thanks
    StevenHendy94
    Best of luck, keep us updated!
    • fjimmy007
    • By fjimmy007 4th Jan 18, 7:12 PM
    • 5 Posts
    • 1 Thanks
    fjimmy007
    full and final settlement after default
    Hi, I need some help here from expert debt adviser, I am in debt with 10 different creditors 2 loans and 7 credit cards and one store card, worth total of 38k , i am paying one pound a month as a token payment since 2010 , now currently I do have one ccj with mbna(ARC) which was awarded early 2017, all the other accounts have default , interesting thing is that only one default is showing on my credit file (Noddle) which was awarded by link barclay credit card, as my credit file already damaged and most of the default is not showing on my credit file , but still i am paying £1 each to my debt collection agencies , apart from ccj which i am not paying since august 2016,
    My question is that if i go for full and final settlement even though some of my defaults are not coming up on my credit file, if they settled through full and final settlement process, will they show again on my credit file as a partially settled or settled whichever is .Can I do full and final settlement on ccj , if not what will happen after 6 years of ccj, will my credit file updated and start fresh, please answer on both issue, Thanks in advance
    • fatbelly
    • By fatbelly 4th Jan 18, 7:45 PM
    • 11,773 Posts
    • 8,867 Thanks
    fatbelly
    Hi, I need some help here from expert debt adviser, I am in debt with 10 different creditors 2 loans and 7 credit cards and one store card, worth total of 38k , i am paying one pound a month as a token payment since 2010 , now currently I do have one ccj with mbna(ARC) which was awarded early 2017, all the other accounts have default , interesting thing is that only one default is showing on my credit file (Noddle) which was awarded by link barclay credit card, as my credit file already damaged and most of the default is not showing on my credit file , but still i am paying £1 each to my debt collection agencies , apart from ccj which i am not paying since august 2016,
    My question is that if i go for full and final settlement even though some of my defaults are not coming up on my credit file, if they settled through full and final settlement process, will they show again on my credit file as a partially settled or settled whichever is .Can I do full and final settlement on ccj , if not what will happen after 6 years of ccj, will my credit file updated and start fresh, please answer on both issue, Thanks in advance
    Originally posted by fjimmy007
    I don't like token offers but it seems odd that you are making them to all creditors except the one with a ccj!

    In answer to your question - no. Once a default is issued the whole entry will drop off in 6 years' time, regardless of what happens. A ccj however creates its own fresh entry which stays 6 years from the date of judgement.

    And yes you can get a settlement deal on a ccj but it is not likely to be a very good one as the creditor has enforcement options if you are not paying what the court ordered.
    • betweenarockandhardplace
    • By betweenarockandhardplace 5th Jan 18, 1:56 PM
    • 15 Posts
    • 2 Thanks
    betweenarockandhardplace
    need some advise please

    i have a credit card debt with lowell for £974 which defaulted in october 2016

    i have a payment plan of £1 a month set up with lowell at the moment

    ive read this thread and thought il try my luck and offer a settlement for £350

    they emailed me back this morning saying they will not accept any settlement offer and want the full balance

    any advise on next steps?
    • fatbelly
    • By fatbelly 5th Jan 18, 1:58 PM
    • 11,773 Posts
    • 8,867 Thanks
    fatbelly
    need some advise please

    i have a credit card debt with lowell for £974 which defaulted in october 2016

    i have a payment plan of £1 a month set up with lowell at the moment

    ive read this thread and thought il try my luck and offer a settlement for £350

    they emailed me back this morning saying they will not accept any settlement offer and want the full balance

    any advise on next steps?
    Originally posted by betweenarockandhardplace
    Try again in 6 months?
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