Full & Final Settlement

Evilyn_Waugh

This may have been asked before but I couldn't find it.

I have been three months in arrears on my loan payments to HSBC for over a year. I have approx 5k to pay over the next 15 months.

I am abuot to lodge a claim for 1ks worth of bank charges so that can start filtering through the system.

In this situation, might HSBC offer a deal for full and final settlement?

I guess I can knock off 8% interest from this.... With the bank charges etc, I would hope to strike a favourable deal. What woudl the chances of this be?

Also, how would this look on my credit file?

laguna_1

if you're in defualt and been on a dmp for a while, this should work to your favour...

also if its with orginal creditor, the norm tends to be 50 - 70%, whereas if its been passed onto a debt colelcton agency, some people have managed to get offers as low as 25% in full and final settlement from what ive read.

rules of thumb are make sure its all done in writing and the fact the payment is in full and final settlement and that your credit file is marked as fully satisfied.

worth having a go...!!!

edit...just npticed your with original creditor, are u in default.if not they will push down the normal channels so u wont get a super low rate but worth a try anyway...just make sure u say in letter that money is coming froma third party etc.

armitada

I am in a similar situation and did not think about doing this. I owe £5000 to HSBC, I have not yet missed a payment but have been using the overdraft facility for the past 12 months to make the monthly payments. I was going to try and reclaim the charges back from HSBC for the overdraft as well but not sure if I can do this as it was an authorised overdraft.

How much are you going to offer?

Many thanks
:rolleyes: