Full and final settlement to clear accounts - Advice needed please

KevinM

Hopefully, I am on the final leg of my marathon debt clearing which has been on going for the past 6 years or so.

Basically, I have 4 accounts which I am paying off, and they are at the final 12 months of payments.

I have 2 accounts with Blair Oliver & Scott, and 2 accounts with Linc Financial, and all 4 are due to be paid off by August 2009.

I have made the agreed payments to these accounts regularly for the past 6 years, and the current balance total is just about £3000 (for all of them). Roughly £450, £1300, £600 & £650.

Anyway, I have come into a small amount of cash and I would like to clear these debts off once and for all. Unfortunately, it is not enough to clear them all completely as it is only £2200, but I would really appreciate any advice on whether it is possible to offer a reduced amount to these 2 companies as a full and final settlement to clear the accounts.

Are companies usually receptive to offers like this?
Does anyone know if these particular companies are particularly receptive?
Are these things better done via mail or over the phone, making the offer to pay there and then with a debit card?

Any advice on the best way to proceed would be much appreciated, even if the advice is "don't bother", at lest I would know not to waste my (and their) time.

Many thanks,
Kevin.

deccie

Don't have any experience with the companies you mentioned, but my husband made an offer to Abbey National years ago, in full and final settlement of a loan. They accepted his offer, but his credit rating was adversely effected as a result... not something he'd realised would happen!

bargainbetty

Congrats on being so close to debt-free!!

OK, if you want to offer a full and final, I would call them and tell them you have come into a smaller amount of money, wish you wish to use to make them an offer - so tell the £450 creditor you've got £300 etc. Ask them if they would accept a full and final settlement.

If they agree, ask them to send you a letter agreeing to it. Make sure it says full and final, and that the debt will be considered as finished. No sneaky coming back....

If you can get that agreement in writing, then go for it. If not, pay off the highest interest debt first, and just carry on, knowing you are so much closer!!

Good luck x

bargainbetty

Worth checking out Deccie's comment with them too - make sure they categorise the loan as satisfied, not default in ANY way.

Sneaking in...

deccie

My husband did have a letter from Abbey stating that the offer was accepted in full and final settlement. When he realised his rating had been effected he complained to Abbey. Their response was that they had a legal obligation to register the details, even though the debt was discharged to their satisfaction.

Don't know whether that is true?

stapeley

Be very very careful dealing with DCA , are they acting as agents or do they OWN the debt . I personally would carry on as you are , keep money in save place for emergencies . Are they still adding interest ? If not carry on for the next 12 months .

stapeley

Be very very careful dealing with DCA , are they acting as agents or do they OWN the debt . I personally would carry on as you are , keep money in save place for emergencies . Are they still adding interest ? If not carry on for the next 12 months . Oh and don,t take out new debt . good luck