Full and final settlement help thread

fatbelly

It swings a bit more towards bankruptcy if the 25k (or the major part of it) isn't his. I guess there might be a car in the situation too.

I have found it more difficult to get full & finals recently, but seem to get the best results with an initial letter, then get on the phone to get agreement, then get it confirmed in writing.

It seems most of them are prepared to move some way to settle but think that they can hold out for more than 40%.

NewcastlePaul

fatbelly wrote: »

It swings a bit more towards bankruptcy if the 25k (or the major part of it) isn't his. I guess there might be a car in the situation too.

I have found it more difficult to get full & finals recently, but seem to get the best results with an initial letter, then get on the phone to get agreement, then get it confirmed in writing.

It seems most of them are prepared to move some way to settle but think that they can hold out for more than 40%.

Majority is mine from PPI refunds. Despite me owing creditors and having balances reduced as compensation I actually received cheques from my 3 biggest creditors so they will know what they paid me so probably think I'm being cheeky to offer that cash as a 40% f&f offer

£9,262 Cheque Received (Lloyds Tsb)
£8,190 Cheque Received (Barclays)
£1,679 Cheque Received (Barclaycard)

No assets apart from car and that's 11 years old and according to AA and buy any car Sites valued about 550 pound


Looking at figures I might get rid of 10k for 5k.
Worst case scenario I get rid of 26th worth of debt for 15ish

Leaves me 23k in debt with 10 in the bank but paying nearly 6k a year through Stepchange so it's more likely to be 2018 as debt free rather than 9 years

spiffyiffy

Hi all,

I've been on a DMP since Nov/Dec but i had a few questions:

• If I have a bit of money given to me or lent to me; do I just tell the creditors that it is from friends or family etc?
• If possible who are the best to respond to F&F's?
• I'm guessing if you partially pay your creditors and you clear your debt with them, it goes on your credit report but does anyone know how long that would stay on there for?
• And lastly where can I find templates for letters for F&F's?

Thanks

jen34

I have been in a dmp with payplan for the last 6 years and have paid £8000 of my debts and still have around £4000 left in it. I have a bit of money coming that will clear my priority debts and leave me with around 3500 left to clear my debts.

What is the best way to clear these and will it affect my future credit if I pay a lower amount to settle the debt.

Am I better going to the creditors myself or should I let payplan make an offer of settlement?

NewcastlePaul

NewcastlePaul wrote: »

Was originally £108k in debt.
10 years of Stepchange have got that down to £49k

A bit of PPI reclaiming and an offer of help from my mother means I have £25k to offer as F&F settlement offer

Creditor.....Outstanding......Stepchange Payment
Lloyds.......£13.3k..............£101
Barclays....£9.4k................£82
Idem.........£7.4k................£42
Marlin........£3.7k................£28
Marlin........£4.4k................£55
Link...........£2.7k................£33
B/card........£2.3k...............£28
BoS...........£2.4k................£25
B/card........£1.4k...............£17
Asset Link....£1.4k..............£14
Beneficial......£0.5k.............£44

(Figures rounded up)


Offered them all 30% in March and got refused by everyone.
Explained that i was on a Stepchange DMP and would be for another 9 years
enclosed photocopies of.

DMP budget plan
stepchange list of outstanding creditors
rent statement for flat

Rather than go in with 5% increases. I figured I would just go straight in for 40% offers. The letter was worded as shown...

** 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 **



Sent them last week and already got majority of them replying saying no.


Lloyds, BoS, Idem say make another offer

Beneficail say same but they are a low amount with a payment that means its paid off in 12 months so they are unlikely to accept

Barclaycard say 70% on 1 card, 75% on the rest

Barclays want 80%. They actually said 70% when I offered 30%

Link said they would take 60% when I offered 30%

The 2 Marlin accounts replied to my 30% offers saying they would take 40% and 50% so if they come back with similar I will get my mother to write the cheque there and then.

I am happy to accept F&F settlement terms that say it will stay on record for 6 years as I have more than that on DMP and I just want rid of the debt.

Has anyone had any experience of more favourable settlements with the firms above. Do you think the lack of acceptance may be because they know I claimed PPI of them ?

Also has anyone had any experience of F&F settlements with Marlin. Are they likely to try and come back in the future even though I worded my original letter like the Debtline template

I didn't expect to get away with my debt but 10 years into a 19 year DMP i thought I might have at least had 1 bite at 40 %

cheers for reading.
All comments, advice welcome

Had a reply from Marlin today and they are willing to accept 40% and 50% respectively so going to clear 8.5k for paying off 3.7k

Both letters are worded as such.....

We will accept payment from you of the reduced amount of £1,493.46 in full and final settlement of the monies outstanding on this account, providing all of your priority bills including rent/mortgage, council tax, gas, electricity, water, court fines and child support are upto date and that we receive your payment by the 30.06.2015.

If there has been a change in your financial circumstances, m please tell us about this on/before making the payment.

Once we have received this reduced amount, we will arrange for your credit file to be updated so it records the account as having been satisfied (partially settled)

Please quote our reference number on all correspondence and payment to us.
Your account will be closed pending clearancestors of this payment.

If you wish to discuss the account further thenotice please contact one of our customer consultants on telephone number 0333 *** ****.
Our opening hours are 8:00am to 5:00 Monday to Friday.

We look forward to hearing from you further regarding settlement.

Yours sincerely

Cabot Financial (Marlin)


Is the letter a guarantee that they won't come back for more or try and sell the debt. No one is named and there is no signature but it is on headed note paper.
I will be sending a cheque from my mother's current account (read 3rd party transactions safer)

Should I put in letter "as per your letter I enclose said amount
By cashing this cheque you accept that it is full and final settlement etc or is that a bit tot ?

Excited to get my first reply. Been a massiveven journey and now I can see light at the end of the tunnel

cmc_entertainment

anyone had recent successes with Moorcroft full and final settlement?

Is it a good idea to email an offer just copy/paste and follow up with a letter as a copy ie Cabot have an email address/form to fill in a final settlement offer?

mtia

fatbelly

NewcastlePaul wrote: »

Had a reply from Marlin today and they are willing to accept 40% and 50% respectively so going to clear 8.5k for paying off 3.7k

Both letters are worded as such.....

We will accept payment from you of the reduced amount of £1,493.46 in full and final settlement of the monies outstanding on this account, providing all of your priority bills including rent/mortgage, council tax, gas, electricity, water, court fines and child support are upto date and that we receive your payment by the 30.06.2015.

If there has been a change in your financial circumstances, m please tell us about this on/before making the payment.

Once we have received this reduced amount, we will arrange for your credit file to be updated so it records the account as having been satisfied (partially settled)

Please quote our reference number on all correspondence and payment to us.
Your account will be closed pending clearancestors of this payment.

If you wish to discuss the account further thenotice please contact one of our customer consultants on telephone number 0333 *** ****.
Our opening hours are 8:00am to 5:00 Monday to Friday.

We look forward to hearing from you further regarding settlement.

Yours sincerely

Cabot Financial (Marlin)


Is the letter a guarantee that they won't come back for more or try and sell the debt. No one is named and there is no signature but it is on headed note paper.
I will be sending a cheque from my mother's current account (read 3rd party transactions safer)

Should I put in letter "as per your letter I enclose said amount
By cashing this cheque you accept that it is full and final settlement etc or is that a bit tot ?

Excited to get my first reply. Been a massiveven journey and now I can see light at the end of the tunnel

well done

Their letter is your evidence of the arrangement. No harm in referring them back to it when you make your payment but do keep it safe for 6 years in case they accidentally sell your account to someone else.

fatbelly

cmc_entertainment wrote: »

anyone had recent successes with Moorcroft full and final settlement?

Is it a good idea to email an offer just copy/paste and follow up with a letter as a copy ie Cabot have an email address/form to fill in a final settlement offer?

mtia

Moorcroft don't generally own debt - they act as collectors. So when you make an offer they have to refer that to their 'client'

The process doesn't matter too much as long as you end up with something on creditor's letterheaded paper setting the deal out clearly.

NewcastlePaul

fatbelly wrote: »

well done

Their letter is your evidence of the arrangement. No harm in referring them back to it when you make your payment but do keep it safe for 6 years in case they accidentally sell your account to someone else.

** Name and Address **
03/06/2015

!

Reference Number! ** No **

!

Dear Sir / Madam.

I refer to your previous letter, a copy of which I have enclosed.

I enclose a Cheque from my Mothers bank account for the amount of ** Balance ** which you said you would accept in full and final settlement of the monies outstanding on this account.

You also said that once you received the amount that you would arrange for my credit file to be updated so it records the account as having been satisfied

This cheque payment 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 shall also keep a copy of all correspondence for 6 years .

I would finally like to thank you for the professional and sincere way that your company has acted with my account over the years.


Yours Sincerely

**Name , Signature and Date **

Is that ok ?

fatbelly

Seems fine. Well done