Full and final settlement help thread

fatbelly

rabialiones wrote: »

hi , could you let me know how you managed to get over 40% with cabot /mortimer clarke, as they are only accepting 40% from me and adding costs onto it,
thanks

The poster says they settled the debts with Cabot at between 44.96% and 61.78% of the balance figure.

If you are saying that they are offering to settle at 60% then you are in the same range.

If you are being offered a 40% settlement then you may want to accept it!

rabialiones

they are accepting 40% but adding court costs onto it.
are they allowed to do this?

zenshi

I have a debt for overpayment of tax credits to which I'm paying a collection agency for. I'm unsure wether they have bought the debt or just acting but my question is.....will this kind of debt accept a reduced settlement figure? As it was a government debt to start with?. At the current rate I'm paying it back, it will take around 9 years to clear

sourcrates

zenshi wrote: »

I have a debt for overpayment of tax credits to which I'm paying a collection agency for. I'm unsure wether they have bought the debt or just acting but my question is.....will this kind of debt accept a reduced settlement figure? As it was a government debt to start with?. At the current rate I'm paying it back, it will take around 9 years to clear

Hi,


Normally these kind of debts will be assigned to the DCA, and they will be looking for the full amount, the problem with debts owed to HMRC or other Government depts. is that they can take any money you owe them, from any future benefit you may claim, such as a state pension or other benefit.


However, they can only do this for a period of 20 years from the original overpayment, you could try and offer a lesser amount to settle, but even if accepted, there's nothing to stop the government clawing it back sometime in the future.

zenshi

Thanks sourcrates! Funny thing is, they took nearly 5 years to chase me for it and have never attempted to take any of it from any benefits I claim

sourcrates

zenshi wrote: »

Thanks sourcrates! Funny thing is, they took nearly 5 years to chase me for it and have never attempted to take any of it from any benefits I claim

HMRC are in a bit of turmoil just now, they just cant cope with doing everything the Government demands of them, so they have to prioritise.


So many people have been overpaid, the system reached breaking point, and they had to recruit more staff to cope, so its no wonder they are going about this !!!! about face.

NewcastlePaul

NewcastlePaul wrote: »

Offered...............................Accepted
30%...................................No One
40%...................................Marlin (3.7k acc)
50%...................................Marlin (4.4k acc)

Only sent 50% offers last week and only other reply is a refusal from Lloyds.

Creditors have advised they would accept....

60% - Asset Link . Will pay that as £1664 (offered £1387)
65% - Lloyds - Biggest creditor but dont want to jump quickly
71% - Barclays - 2nd biggest creditor. As above
75% - BOS, Barclaycard (1.4k acc)
80% - Barclaycard (2.3k acc)
90% - Assetlink
100% - Idem, Benficial *

* Beneficial is under £456 now and as monthly payment is £44
then they probably unlikely to accept anything so that account I may just not send further offers and let it pay off naturally.

Idem just respond that they are not prepared to take a reduced settlement. Bearing in mind they get less than Beneficial a month yet the balance is 15 times greater i thought they may have been willing to accept a F&F.


Looks like still a way to go. Should have responses to rest of written 50% offers in the next week or two. Will then take it from there and decide to keep nudging up or accept (esp Lloyds)

start of F&F was
Debt was 49k and funds were 25k

after asset link payment
Debt will be 38k with 19.6k funds left

Will keep you updated

40%...................................Marlin (3.7k acc)
50%...................................Marlin (4.4k acc)
60%...................................Link Financial (2.7k)
60%...................................Barclays (9.3k)
65%.................................. Lloyds (13.1k)

Got rid of 33k worth of debt for 19.6k
That with a few months of Stepchange payments mean debt is down to £15k and I still have 5.3k left


That leaves me with...

Idem (7.3k) they wrote asking for details when i offered 50%
BoS (2.2k) not heard anything yet
Bcard 1 (2.2k) now won't entertain F&F. Comp says no
Bcard 2 (1.3k) as above
Asset Link (1.3k) not heard anything
Beneficial (0.4k) Will let it run down

Barclaycard are the strange ones. When I offered 40% they said they would take 70% on one and 75% on the other. Yet now every department I talk to says no

LL83

Hi, I'm new to this forum and just wondered if anyone could offer me any advice?

I am currently on maternity leave and due to having a 3rd child, I'm unable to return to this job, so from September I will have a reduction in income.

I'm now in situation where I need to contact the 2 credit card companies I owe money to....Halifax £7,000 and Tesco £3250. Even whilst working I could only afford to make the minimum payment each month, so going forward I won't be able to make this.

My personal financial situation is unlikely to change for at least 2 years until my 3rd child goes into
Childcare.

If I can secure 3rd party funding, would it be likely that either of these would accept a full and final settlement offer? Bearing in mind that that I have never missed a payment?

If not, then what is the likely outcome of me offering £1 per month token payments for 2 years?

Kind regards,

fatbelly

LL83 wrote: »

Hi, I'm new to this forum and just wondered if anyone could offer me any advice?

I am currently on maternity leave and due to having a 3rd child, I'm unable to return to this job, so from September I will have a reduction in income.

I'm now in situation where I need to contact the 2 credit card companies I owe money to....Halifax £7,000 and Tesco £3250. Even whilst working I could only afford to make the minimum payment each month, so going forward I won't be able to make this.

My personal financial situation is unlikely to change for at least 2 years until my 3rd child goes into
Childcare.

If I can secure 3rd party funding, would it be likely that either of these would accept a full and final settlement offer? Bearing in mind that that I have never missed a payment?

If not, then what is the likely outcome of me offering £1 per month token payments for 2 years?

Kind regards,

As things stand it's highly unlikely you would get any sort of discount.

However, pay them £1 for 6 months or more (justified by a financial statement showing that that is all you can afford) and their attitude should
change.

So in the short term you are going to need a debt management plan, either self-managed or through Payplan/Stepchange.

Alternatively, depending on a few other criteria you might qualify for a Debt Relief Order. Now's the time to weigh up the options.

billybob8111

Hi folks, some great advice in this thread many thanks. I have managed to agree a 30% settlement but just want to check the wording of the email we have received from the debt company, to make sure this will release me from future liabilty and chasing. Any advice would be much appreciated. The payment will be made over the phone by a third party

The email reads:

We are writing in regards to the settlement of your accounts.

We are pleased to confirm that we will accept £xxx as final settlement of your accounts, payment to be received no later than 30.07.15

We would respectfully request that you contact us prior to the agreed settlement date, to confirm acceptance of the approved settlement offer. You can either call us on the number provided below, email or alternatively write to us.

Where applicable the relevant Credit Reference Bureaux will be updated to show that this account has a zero balance and is partially settled with us. Please bear in mind that this can take up to six weeks from the clearance of your payment. If for any reason your payment is not received by this date, the arrangement will be cancelled and the full balance will become due for payment.

We trust that this is sufficient for your records and look forward to your reply.