Full and final settlement help thread

sourcrates

Parkie93 wrote: »

When making a F&FS offer, should I let each creditor know how much I owe to each of the others, so that they know I'm making a fair offer - pro rata to the debt I owe each company? Or should I just offer an amount and not let them know?

Personally I wouldn't tell them anything they didn't need to know, people will tell you you should be fair to each creditor, well I'm a firm believer in looking out for your self, in my book that would mean settling each one for as little as possible, you can dress this up anyway you choose, business is business.

Parkie93

This is a really good forum and all of the help here is greatly appreciated! I've been in a Debt Management Plan with Payplan since September 2008, when I had a total debt of £28522.63 amongst nine creditors. I've not missed a payment and I've paid off £11364.29 leaving a balance of £17158.34. My monthly payments have been up and down according to my circumstances but at the moment I'm just paying £44 a month. I have a small income but I will be 64 next and at 65 will really only have the state pension plus about £250 a month from a small private one, so it's very unlikely I'll ever be able to increase my monthly payments. With some help from relatives though, I now find myself in the position that I can probably make a full and final settlement offer and reading the forums 40% seems to be about the right starting point? Also I've read a couple of post where it says I should ask for CCA's before offering anything? I don't really understand this, so I'd be really grateful for any advice. I'm just scared of not doing things correctly.

sourcrates

CCA request is a request for a copy of the original agreement, in a nutshell, if they can't provide it, they can't obtain judgement against you in court, therefore you could choose not to pay, and they can't do anything about it.
If your accounts are fairly old ones, you should do this first, if they are recent, and/or taken out online, different rules apply, so would not really be of any benefit to you.

You could choose to make really low offers on accounts with no paperwork, as they would rather take something off you, than get nothing.

west_country_guy

I'm a newbie having only joined today but have learnt so much already so thanks all.
Has anyone had any success with negotiating a F&F settlement with Idem Servicing? They hold the biggest chunk of my debt at £17.3k. I am paying via a DMP at £161 per month with 9 years left to pay. Been paying since 2010 but they have recently purchased the debt from the original lender Barclaycard. If I can cut a reasonable deal with them it would be hugely beneficial to my overall situation.

Parkie93

I'm a bit confused about lenders having to supply copies of the original CCAs. I know the legislation was changed around 2008/9? I got into difficulties at the end of 2008 and I have been paying into a DMP with Payplan since then. I'd actually originally applied for and used the credit cards between 1995 and 2000 though and had until then kept up payments without a problem. So because I applied for them so long ago, do the new same rules apply, inasmuch as the lenders only have to supply a 'reconstituted copy' or do the old rules apply? If I do decide to send some requests for copies of the CCAs to some of my creditors (in the hope that I might be able to negotiate a more favourable final settlement figure),is there a template somewhere I can copy? I want to make sure I word the letters correctly. I also read somewhere not to sign but to print my signature on the letters and to send £1 postal orders? Is that correct. Any advice appreciated. Thanks.

Machiaveli

Hi all,

Just after some clarification regarding full and final settlement and its impact on your credit file. I currently have two outstanding credit card debts. One originally with MBNA and the other with Lloyds TSB. Both accounts were in default and passed to DCA's (PRA and Capquest) I'm in arrangements with both from around 2011and pay £100 per month on one with a current balance of £5400 and £50 per month on the other with a balance of £9400. I might be in the position shortly of having a lump sum of around £8000. If I'm able to agree a FFP with the agencies and my credit file is marked partial payment with zero balance outstanding rather than if I paid both off in full and had them marked as satisfied is there any real difference in the impact on my credit score/ability to gain future credit (mortgage) as presumably with either option it will be pretty much bottomed out for the six years it will take either entry to drop off.

Any guidance/advice greatly appreciated.

manicmoron

Hi All,


I've read through most (but not all) of the many pages in this thread and though I have gleened some very useful information on other matters I'm a little confused!


I started a DMP with Payplan some 8 years ago and have been maintaining payments ever since. I have cut my overall debts from £29k to £7k with 2 years left to run.


I have an opportunity to 'borrow' approx. £5k


1. Is it worth it, at this stage with less than 2 years to go, to offer F&F Settlements to my Creditors to clear the debts?


2. With less than 2 years to run and having maintained a good DMP payment history are my Creditors likely to accept a F&F at this stage or will they look to keep the Plan going for the next two years?


3. Looking at my Credit Files non of my existing Creditors are seen - does this therefore mean that my 'defaults' are no longer on file and consequently my Credit Score is in a much better position?


Thanks guys for all the good info

bennyhill_2

manicmoron wrote: »

Hi All,


I've read through most (but not all) of the many pages in this thread and though I have gleened some very useful information on other matters I'm a little confused!


I started a DMP with Payplan some 8 years ago and have been maintaining payments ever since. I have cut my overall debts from £29k to £7k with 2 years left to run.


I have an opportunity to 'borrow' approx. £5k


1. Is it worth it, at this stage with less than 2 years to go, to offer F&F Settlements to my Creditors to clear the debts?


2. With less than 2 years to run and having maintained a good DMP payment history are my Creditors likely to accept a F&F at this stage or will they look to keep the Plan going for the next two years?


3. Looking at my Credit Files non of my existing Creditors are seen - does this therefore mean that my 'defaults' are no longer on file and consequently my Credit Score is in a much better position?


Thanks guys for all the good info

The default markers would (should!) have dropped off after 6 years (assuming you are in England).

Given the age of the debts I'd start with very low offers and go from there. The effect of partially settling won't ever be known, by which I mean they won't adversely affect you.

Think of it as a game of poker - you don't want to reveal your hand (ie: how much you can potentially get your hands on to use for settlement). Go in low, anything you save is a bonus really

Parkie93

I sent a CCA request letter to Capital One bank and reading some advice on here, I printed my signature at the bottom of the letter.
I've just had a reply back which says-
'the signature you have provided with your letter doesn't match what we have on our records. Therefore , we require a copy of a document showing your current signature (this could be a drivers licence or passport). Please arrange for this documentation to be forwarded to us and we will be happy to assist you further.'
Do I have to comply and is it wise to do so? Thanks.

sourcrates

Parkie93 wrote: »

I sent a CCA request letter to Capital One bank and reading some advice on here, I printed my signature at the bottom of the letter.
I've just had a reply back which says-
'the signature you have provided with your letter doesn't match what we have on our records. Therefore , we require a copy of a document showing your current signature (this could be a drivers licence or passport). Please arrange for this documentation to be forwarded to us and we will be happy to assist you further.'
Do I have to comply and is it wise to do so? Thanks.

Hi,
This is a common stalling tactic, there is no requirement under sec 78 consumer credit act, for you to provide a signature on a CCA request, you can either write back and tell them that, or provide what they are asking for.
But that runs the risk of a copy an paste job on any agreement they may eventually provide you with.