Full and final settlement help thread

kessik

I have a default against me on my Experian credit file with Lloyds Bank. I think I'm right in saying that the default will stay on my file for six years whether I pay it in full or negotiate a full and final payment, the only difference being it will say 'paid in full' or 'partial settlement' (but please correct me if I'm wrong). Bearing this in mind, and that the original debt is £525, do I have anything to lose by offering Lloyds about £250 as f&f payment? I know there was a DCA involved but I can't remember who (Westcott sounds familiar) so should I just contact Lloyds? And where might I find their Debt Recovery section address?
Thanks in advance!

Laura2000

Hi, We recently negotiated a Full & Final settlement offer with our creditor. We received their written confirmation today and we want to make sure there is nothing in the letter that would cause us problem in the future and we'd really appreciate your expert advice. Our creditor is called Arrow Global and their external agents who we have been dealing with is Fidelite Credit management, previously known as Scotcall. We have copied their letter for your consideration bellow. This is a joint debt and Scotcall was a little iffy about including both our names in the letter and the letter is addressed only as dear Mr....... We've never heard of the term "FOA" in a letter before. Is FOA of Mr.... &Mrs..... sufficient enough to show that both of us will be resealed from any liability? Also they say that the remaining balance will show as unpaid, should it not be zero? and does it mean that they could sell the rest of the debt to another creditor who could pursue it in the future. The letter is only signed by an Agents name. There is no actual signature or stamp.

FOA of Mr...... & Mrs......

Our Account number:.....
Client account number.......
Current balance........

Dear Mr........,
We can advice that our client Arrow global will accept a settlement of £........ for the HSBC account that they own. Can we please that when making a settlement payment and where your credit file is updated by our client this will show as partially settled/satisfied as oppose to showing as settled/satisfied if you paid the balance in full. This means that while you will not be perused for the remaining balance this amount will show as unpaid on your credit file.

Thank you very much in advance for your advice.

sourcrates

Hi,
The important phrase is "you will not be pursued for the remaining balance", as long as you have that in writing, you will have a responce to anyone who may pursue you in the future, which is unlikely.

It is correct that a balance will remain showing, as you have partially settled the debt, it would only show as zero if it had been settled in full.

Thrugelmir

Laura2000 wrote: »

Also they say that the remaining balance will show as unpaid, should it not be zero?

This is to warn any other user of your credit history of this fact. So yes there is a consequence to partial settlement.

getmefree

Hi all,

I have three old debts (over 10 years old) that I have been paying monthly via a DMP. They are all with DCA's.

These are all off of my credit report now as it is over 6 years since I defaulted. I am now in a position to offer a F&F on these, but i was wondering if in doing so I risk a 're-entry' onto my credit report?

Any advice greatly received.

sourcrates

getmefree wrote: »

Hi all,

I have three old debts (over 10 years old) that I have been paying monthly via a DMP. They are all with DCA's.

These are all off of my credit report now as it is over 6 years since I defaulted. I am now in a position to offer a F&F on these, but i was wondering if in doing so I risk a 're-entry' onto my credit report?

Any advice greatly received.

No, once a debt has gone from your file, it can't come back.

What you should do first, if the accounts were loans, credit cards, or other accounts covered by the consumer credit act, is make CCA requests.
Little chance they will still have the paperwork now.

getmefree

Thanks. Sorry for my ignorance - what is a CCA request and why do I need one?

Thanks again

fatbelly

It's a formal request, under s77-79 of the Consumer Credit Act, for a copy of your credit agreement.

The account becomes unenforceable until they comply.

If they can only send a reconstruction then there is an argument (s127(3)) for pre-2007 accounts that the account is irredeemably unenforceable.

getmefree

fatbelly wrote: »

It's a formal request, under s77-79 of the Consumer Credit Act, for a copy of your credit agreement.

The account becomes unenforceable until they comply.

If they can only send a reconstruction then there is an argument (s127(3)) for pre-2007 accounts that the account is irredeemably unenforceable.

Thanks very much. Is it likely that DCA's will have these though seeing as though the debts were passed on from the original lenders?

And if they don't what can i do?

sourcrates

getmefree wrote: »

Thanks very much. Is it likely that DCA's will have these though seeing as though the debts were passed on from the original lenders?

And if they don't what can i do?

The DCA's will not have them, they will put your accounts on hold until they have gone back to the original creditor with your request.

This usually takes up to 8 weeks, or longer, if they can't produce a coherent credit agreement, you may not have to pay, or you may be able to settle for less than normal.

If no agreement can be produced, there's a good argument that they can't take court action to make you pay.