Full and final settlement help thread

Zekko

happy_bunny wrote: »

I think full and final settlement is ok.

Most companies wont say this and say 'Partially settled', in which case the points about setting the balance to zero and not selling on are more important.

HB

Thanks.

The only bit that makes me nervous is they haven't confirmed the debt won't be chased by anyone else.
I suppose that the "full and final settlement" statement implies that this won't happen?

happy_bunny_2

Zekko wrote: »

Thanks.

The only bit that makes me nervous is they haven't confirmed the debt won't be chased by anyone else.
I suppose that the "full and final settlement" statement implies that this won't happen?

Yep, that's the way I read it. If in doubt, why not give national debtline a quick call to see what they think?

trying-very-trying

Sorry if this has already been covered, but I couldn't find it. I am about to receive a settlement figure from the sale of our house and divorce.
I phoned Stepchange who are handling my dmp, and they would like me to pay my debt in full. I have a total of £25000 of which I feel a need to spend £18000 on a LEVO standing wheelchair. I was very fortunate to be able to buy a used LEVO Combi chair from ebay. The chair is brilliant, but about 15years old. I have been in a wheelchair since Oct 2013, and have only had the LEVO since late last year, but the difference it has made to my mental health and physical abilities leaves me scared at the thought of being without it. I am under 65, so I have to contribute to my care. I will never have this amount of money in my lifetime and I can never have more than £16000 in savings without having to use any extra towards the cost of my care package.
Stepchange want me to pay the full £15000 to clear my debt, and they do not consider this chair to be a neccessity. I don't even know where all my debt is owed. I had though of contacting the firms direct, hoping to reach a lower F&F payment, but right now I feel like just getting the chair and keep making the debt payments based on my weekly benefits. Can anyone give an opinion of how I can get my chair and hopefully clear the debt with the remaining £7000?
TIA for any advice, t-v-t. Many apologies if this is in the wrong place.

happy_bunny_2

trying-very-trying wrote: »

Sorry if this has already been covered, but I couldn't find it. I am about to receive a settlement figure from the sale of our house and divorce.
I phoned Stepchange who are handling my dmp, and they would like me to pay my debt in full. I have a total of £25000 of which I feel a need to spend £18000 on a LEVO standing wheelchair. I was very fortunate to be able to buy a used LEVO Combi chair from ebay. The chair is brilliant, but about 15years old. I have been in a wheelchair since Oct 2013, and have only had the LEVO since late last year, but the difference it has made to my mental health and physical abilities leaves me scared at the thought of being without it. I am under 65, so I have to contribute to my care. I will never have this amount of money in my lifetime and I can never have more than £16000 in savings without having to use any extra towards the cost of my care package.
Stepchange want me to pay the full £15000 to clear my debt, and they do not consider this chair to be a neccessity. I don't even know where all my debt is owed. I had though of contacting the firms direct, hoping to reach a lower F&F payment, but right now I feel like just getting the chair and keep making the debt payments based on my weekly benefits. Can anyone give an opinion of how I can get my chair and hopefully clear the debt with the remaining £7000?
TIA for any advice, t-v-t. Many apologies if this is in the wrong place.

I guess Stepchange are advising you from a purely financial perspective and not from a quality of life perspective. Will they stop helping you if you don't pay it off in full?

What income do you have? How much are you paying per month on the DMP?

How will that 25k affect the 16K saving ceiling relating to care contributions? Or is it just applicable to savings rather than receiving the lump sum (no idea, just asking).

NewcastlePaul

Is the wording of this letter ok please ?

** Name & Address **

5th May 2015

Dear Sir / Madam.
Without Prejudice
Account Number :

I write with reference to the money which you are claiming on the above account.
I can confirm that I am unable to pay the money which I owe in full.
As you will no doubt be aware I have been on a Debt Management Plan through Stepchange for nearly 10 years and whilst I have man aged to half my debt there is still a large amount outstanding (Copy of all creditor and outstanding balances enclosed)
This has been a tough time, but despite owning no assets and renting a council flat, I did want to try and pay it off without taking an easier way out.
Having just done my annual review with Stepchange (Copy enclosed) I estimate I have about another 9 years on this DMP. I finally came clean to my family and after discussion and some soul searching my mother has offered to help me try and reduce my debt. She did say I should go Bankrupt but as stated earlier I wish to try and pay what I can.
The amount is not finate so in trying to be fair to all creditors
I am offering the same Percentage.
Having worked out who I owe what to I can raise £ **40% Amount ** and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other 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 accepted, you make an entry on my credit reference agency files relating to the above account as having being paid and the account closed.
Payment will be made in the form of a cheque from my Mother’s current account within 30 days of receiving your written agreement of this offer.
I look forward to hearing from you presently.

Yours faithfully

** Name **

sourcrates

NewcastlePaul wrote: »

Is the wording of this letter ok please ?

** Name & Address **
5th May 2015

Dear Sir / Madam.
Without Prejudice
Account Number :

I write with reference to the money which you are claiming on the above account.
I can confirm that I am unable to pay the money which I owe in full.
As you will no doubt be aware I have been on a Debt Management Plan through Stepchange for nearly 10 years and whilst I have man aged to half my debt there is still a large amount outstanding (Copy of all creditor and outstanding balances enclosed)
This has been a tough time, but despite owning no assets and renting a council flat, I did want to try and pay it off without taking an easier way out.
Having just done my annual review with Stepchange (Copy enclosed) I estimate I have about another 9 years on this DMP. I finally came clean to my family and after discussion and some soul searching my mother has offered to help me try and reduce my debt. She did say I should go Bankrupt but as stated earlier I wish to try and pay what I can.
The amount is not finate so in trying to be fair to all creditors
I am offering the same Percentage.
Having worked out who I owe what to I can raise £ **40% Amount ** and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other 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 accepted, you make an entry on my credit reference agency files relating to the above account as having being paid and the account closed.
Payment will be made in the form of a cheque from my Mother’s current account within 30 days of receiving your written agreement of this offer.
I look forward to hearing from you presently.

Yours faithfully

** Name **

Yes looks good to me, shows the creditor that you are serious, and your offer represents the best return for them, in the shortest time.

trying-very-trying

Thanks happy bunny. Stepchange haven't actually said that they will stop helping me, but they won't try to get me a reduced settlement while they think I should pay it off in full.
Any amount I have over 16000 will be considered in full towards the care cost. At the moment I have no savings and pay only what they reckon I can afford from my benefits. There's another story: I was overpaid when I was in hospital for 17months. Apparently I shouldn't have been paying the mortgage and other bills while I was in hospital. I did phone them when I came out of hospital and I was told it only mattered after a year. I was in hosp originally for 4months, but I was only home for 5weeks before I had to go into respite care. It seems that the information I had been given when I called DWP after first stay was wrong! Now I owe them over £3000!
Stepchange would consider repayment of benefits as a necessary cost. I just feel that everybody wants their share of this money, and I'm not going to be able to afford to decorate this house or anything else for my own benefit and I'll never have money like this again:-(

trying-very-trying

Happy bunny, sorry I didn't say, but I only have state benefits and am currently paying somewhere around £67 a month.

sourcrates

trying-very-trying wrote: »

Happy bunny, sorry I didn't say, but I only have state benefits and am currently paying somewhere around £67 a month.

You can make settlement offers to your creditors yourself, you do not need to involve stepchange at all.
They will base there advice on what you may be expected to do, doesn't mean you have to, no one can force you.

See if you can do it yourself, may take a little legwork, and effort, but should be worth it for you.

It's all a matter of negotiation.

trying-very-trying

Sourcrates, thanks for reading my plight. The problem I would have is finding out who I owe the money to. I don't get monthly statement from them all and most of my original debt has been sold on. I haven't received any offers to settle, so I only know that I owe Tesco £170. Don't know where the rest goes.