Full and final settlement help thread

Delete33

So you can not pay the loan back? just the interest. Sounds like a bad deal to me Sourcrates.

merrydance

Hi Delete - It's like an interest only mortgage - only we are too old to get one lol!

Delete33

So you can pay off the original loan with overpayments like an IO Mortgage, as I am doing now with my IO Mortgage.

merrydance

Yes you can but only 10 percent on the product we've taken out. With most lenders you have to be 60 or above. If you do not pay the interest and let it compound it rolls up horrendously. For us we could either sell outright and downsize which isn't convenient at the moment, or remortgage, which we couldn't do because of age/debts. It just gives us a breathing space for a few years. Early repayment fee is 5 per cent of the loan, if you pay it back before 9 years, a lot of companies charge 20 per cent or higher. So it's best to get specialist advice on this type of product or you could lose a lot of money.

Delete33

Understand now, merrydance, thanks for replying.

whambam

Is there a limit to how long you can make token payments to a bank or loan provider?

Same question to a Debt collection agency?

Will both do checks to see if your circumstances improve?

Example:-

I am owed money but the person will take 5 years to give it to me approx maybe more i don't know I will then use that money to come to a settlement over my existing debt at that time. In the meantime I have went from unemployed to working part time minimum wage, however I am unable to make £400 worth of repayments per month this is my salary per month working part time looking to do more hours.

Can I make token payments of £1 until I receive the money which I am owed? Will this need to be sent to the bank or debt collection agency in writing?

Thanks.

sourcrates

whambam wrote: »

Is there a limit to how long you can make token payments to a bank or loan provider?

Same question to a Debt collection agency?

Will both do checks to see if your circumstances improve?

Example:-

I am owed money but the person will take 5 years to give it to me approx maybe more i don't know I will then use that money to come to a settlement over my existing debt at that time. In the meantime I have went from unemployed to working part time minimum wage, however I am unable to make £400 worth of repayments per month this is my salary per month working part time looking to do more hours.

Can I make token payments of £1 until I receive the money which I am owed? Will this need to be sent to the bank or debt collection agency in writing?

Thanks.

There are no rules in debt collection, only guidelines.

You offer what you can afford, that's it, no amount of persuasion or legal action can make you pay more than you can afford, if it's £1 a month, then so be it, no one and nothing can make you pay any more.

pip10

Hi, what sort of percentage have people offered first for full and final?

whambam

well pip the banks and loan providers sell the debt to debt collection agencies for 20-30% max 35% i think. Request a freedom for information request how much say LTSB sold the debt to say Cabot financial they have to tell you under regulations FOI laws. Then once you have this send it with a letter for a full and final settlement and do it for that amount or keep paying token payments then say 3-6 months later ask them again and again until they accept they will see your previous requests they declined and it will be obvious that the customer will keep paying token payments until we accept their offer. You could offer them 5% or more of what they sold it on for, but I wouldn't unless its a low amount under 1K.

January2015

whambam wrote: »

well pip the banks and loan providers sell the debt to debt collection agencies for 20-30% max 35% i think. Request a freedom for information request how much say LTSB sold the debt to say Cabot financial they have to tell you under regulations FOI laws. Then once you have this send it with a letter for a full and final settlement and do it for that amount or keep paying token payments then say 3-6 months later ask them again and again until they accept they will see your previous requests they declined and it will be obvious that the customer will keep paying token payments until we accept their offer. You could offer them 5% or more of what they sold it on for, but I wouldn't unless its a low amount under 1K.

Freedom of information act only gives people the right to access information from public sector organisations. Banks, credit companies and DCAs are not public sector organisations. Therefore people cannot use the freedom of information act to request information.

The amount a creditor sells a debt to DCA for is a matter between creditor and DCA only. The information which must be available to the debtor is the account information, payments, charges, fees, interest rates etc. and who the debt has been assigned to. The debtor has no right to information on how much debts are sold for.