Full and final settlement help thread

whambam

willowwispy wrote: »

I have several debts I've been making reduced payments on. Just had a great result with a subsiduary company of Skipton BS. The debt was £5310.79 & they settled for £531!!! in F&F ...90% off great result. Now I can pay off more than I first hoped :-)

What was the original bank or loan company? How did you get it so low?

Thrugelmir

whambam wrote: »

Can you reapply for another LTSB card say years or 6 months later because they have a good interest or promotion offer? Will they look at your previous record? If so how long do they keep your details on their systems?

You could. Yes they will. As long as they wish.

Technology makes record keeping a straightforward task.

The data can also be shared with other Group Companies.

whambam

I remember I applied for a credit card with a good credit score and got declined because I had the same card within the last 2 years that's why I am asking.

What do you mean group companies? Like RBS owns Natwest, etc?

Do any creditors refer your account to DCA's after 3 months or is it usually 6 to 9 months?

Thrugelmir

A possible reason of many.

Yes.

Lenders can use DCA's to collect on their behalf or sell the debt on. Depends on the corporate policy of the lender.

whambam

Hi,

Got a letter today from the Bank of Scotland looking to settle. Asking for the usual income and expenditure form do they look to see how much surplus you have left over before agreeing your final payment?

There also asking about other creditor debts? Is that not illegal? You debt is with that company/creditor alone and not other debts why would they ask that what difference does it make?


Does anyone know how long you have to wait to increase your credit limit on no credit check credit cards such as LUMA and Capital one they provide £1K initial however with regular payments you can request up to £3.5K

Anyone with bad credit been down this road?

leebo87

Hi,

I've just received my first response to my F&F settlement figure from a DCA. It's a bit of a funny arrangement - one DCA bought the debt a while ago, they then passed it on to another DCA who are now acting on the first DCA's behalf.

Anyway their response (paraphrased) is thus...

'We write to confirm that we are unable to accept your partial settlement at this stage. However to assist you further, we would require further information which we can pass onto our client allowing them to consider your partial settlement offer. Therefore please provide us will a full financial statement etc.'

Should I comply and give them a full breakdown of finances? How accurate does this picture need to be? Or should I try and cut DCA2 out of the picture and write directly to DCA1?

Thanks in advance for any advice offered.

fatbelly

whambam wrote: »

Hi,

Got a letter today from the Bank of Scotland looking to settle. Asking for the usual income and expenditure form do they look to see how much surplus you have left over before agreeing your final payment?

There also asking about other creditor debts? Is that not illegal? You debt is with that company/creditor alone and not other debts why would they ask that what difference does it make?


Does anyone know how long you have to wait to increase your credit limit on no credit check credit cards such as LUMA and Capital one they provide £1K initial however with regular payments you can request up to £3.5K

Anyone with bad credit been down this road?

leebo87 wrote: »

Hi,

I've just received my first response to my F&F settlement figure from a DCA. It's a bit of a funny arrangement - one DCA bought the debt a while ago, they then passed it on to another DCA who are now acting on the first DCA's behalf.

Anyway their response (paraphrased) is thus...

'We write to confirm that we are unable to accept your partial settlement at this stage. However to assist you further, we would require further information which we can pass onto our client allowing them to consider your partial settlement offer. Therefore please provide us will a full financial statement etc.'

Should I comply and give them a full breakdown of finances? How accurate does this picture need to be? Or should I try and cut DCA2 out of the picture and write directly to DCA1?

Thanks in advance for any advice offered.

It's the same answer to both - they can ask these questions and you can answer if you want to.

If your answers point to the only other option being payment by instalment over a long period (say over 5 years) as part of a debt management plan, and no house or wages or assets to enforce a court judgement, then they are more likely to accept a payment in full & final (partial) settlement

DrWatson1

I'd like some advice on F&F settlement. I'm a homeowner, and I have been on a DMP for a total of 5 years, paying debts to 8 companies, the total current amount outstanding being around £25k.

Due to financial hardship, for the last 18 months I have been paying a token amount of £5 per month to each company. All but one of these debts has been sold on; two to Cabot, one to Lowell, etc.

I also recently inherited £4k. This now sits in my bank as an emergency fund. I have also recently secured employment that would enable me to increase my monthly DMP. As I see it, my options are:

1, Do nothing. Keep the £4k for an emergency. Keep paying £40 a month and saving whatever I can each month to add to the £4k. Let the DC's keep selling debt at a cheaper rate until the potential for F&F settlement hits rock bottom.

2, Negotiate F&F now. However, I very much doubt the £4k would be enough to get me debt free, and it is reassuring to have an emergency fund.....

If I felt I could clear my debts right now with £4k I'd do it, however I suspect that won't be the case. My gut feeling is to wait until I have 20-25% of the total amount of my debts saved up (around £5-6k), and try then. Plus, I feel if I alert DC's that I have come into some money, they may become more active in trying to collect. At the moment, I feel very much under the radar, and am under no pressure from any companies.

Thoughts?

fatbelly

DrWatson1 wrote: »

I'd like some advice on F&F settlement. I'm a homeowner, and I have been on a DMP for a total of 5 years, paying debts to 8 companies, the total current amount outstanding being around £25k.

Due to financial hardship, for the last 18 months I have been paying a token amount of £5 per month to each company. All but one of these debts has been sold on; two to Cabot, one to Lowell, etc.

I also recently inherited £4k. This now sits in my bank as an emergency fund. I have also recently secured employment that would enable me to increase my monthly DMP. As I see it, my options are:

1, Do nothing. Keep the £4k for an emergency. Keep paying £40 a month and saving whatever I can each month to add to the £4k. Let the DC's keep selling debt at a cheaper rate until the potential for F&F settlement hits rock bottom.

2, Negotiate F&F now. However, I very much doubt the £4k would be enough to get me debt free, and it is reassuring to have an emergency fund.....

If I felt I could clear my debts right now with £4k I'd do it, however I suspect that won't be the case. My gut feeling is to wait until I have 20-25% of the total amount of my debts saved up (around £5-6k), and try then. Plus, I feel if I alert DC's that I have come into some money, they may become more active in trying to collect. At the moment, I feel very much under the radar, and am under no pressure from any companies.

Thoughts?

4k isn't going to clear your debts - I'd keep your powder dry for now. Keep the money away from anyone connected to your debts and get a bit of interest on it if you can. The ability to pay a lump sum rather than instalments may also mean you can spend less on e.g. car insurance, road tax, landline rental. Start writing to them at around 6k

DrWatson1

Ok thanks. I'm also paying my creditors through a debt management company. Should I involve them when offering F&F, or am I better off dealing with my creditors directly?