Full and final settlement help thread

PeanutPeen

Thanks for your reply fatbelly, but bankruptcy not an option as he owns a flat (rather he's being paying an interest only mortgage for lors knows how long). Given that, what are your thoughts?

Should I be posting this Q elsewhere? If so, can you point me in the right direction please?

He has a really good income now, so not unreasonable to dent the amount of debt (clearing 4.4k a month - massive outgoings though...).

fatbelly

PeanutPeen wrote: »

Thanks for your reply fatbelly, but bankruptcy not an option as he owns a flat (rather he's being paying an interest only mortgage for lors knows how long). Given that, what are your thoughts?

Should I be posting this Q elsewhere? If so, can you point me in the right direction please?

He has a really good income now, so not unreasonable to dent the amount of debt (clearing 4.4k a month - massive outgoings though...).

OK, get something agreed with HMRC to stop them going for bankruptcy, then see what is left over.

leebo87

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.

Hi all,

I sent an SOA to the DCA I mentioned above and I have received their reply today. They are willing to accept a £1pm payment to be reviewed in 6 months. They didn't mention anything about the F&F. I'm not keen on making this min payment as I'd much rather make an F&F and have it out of the way.

I think my next step will be to send them and the DCA they are working for a CCA request and see what happens - unless anyone has a better idea?

Thanks,

fatbelly

leebo87 wrote: »

Hi all,

I sent an SOA to the DCA I mentioned above and I have received their reply today. They are willing to accept a £1pm payment to be reviewed in 6 months. They didn't mention anything about the F&F. I'm not keen on making this min payment as I'd much rather make an F&F and have it out of the way.

I think my next step will be to send them and the DCA they are working for a CCA request and see what happens - unless anyone has a better idea?

Thanks,

Yes that seems sensible, provided it is a Consumer Credit Act debt

Then if they send a copy of the agreement, make the F&F offer again pointing out (say this is for a debt of £1500) that their suggestion would take 125 years to clear the debt whereas you are offering £375 to settle now.

If they don't send a copy, then the debt stays unenforceable until they do.

leebo87

Thank you fatbelly, it's a debt from an old Virign Credit card (circa 2009), I assume this falls under the Consumer Credit Act?

fatbelly

leebo87 wrote: »

Thank you fatbelly, it's a debt from an old Virign Credit card (circa 2009), I assume this falls under the Consumer Credit Act?

Yes, no problem there

January2015

Ok - we now have £20k made available to us to make F&F offers. We are starting with the largest 3 enforceable debts. Do you think 30% is a good starting point? I can't imagine we will have that accepted and am prepared for the back and forth negotiations.

Any thoughts/advice?

sourcrates

January2015 wrote: »

Ok - we now have £20k made available to us to make F&F offers. We are starting with the largest 3 enforceable debts. Do you think 30% is a good starting point? I can't imagine we will have that accepted and am prepared for the back and forth negotiations.

Any thoughts/advice?

Yes, start low, you never know your luck !!

Some people have had great success with small offers on big debts.

pip10

Hi,

I've been paying what I can afford for around 5 years now through a dmp with step change, but have come into a sum of money, which I hope to use to make full and final settlements.

Like another poster above, I have been comfortable for awhile in that the interest has been frozen and the companies have left me alone.

As I don't quite have enough to pay it all back (I have about 70% of the debt), if the companies refused my offers, could this impact the arrangement negatively - e.g. Could they start adding interest again? or start sending letters and phoning again. I wouldn't want it to go back to what it was like when I first defaulted (basically being hounded). Any thoughts appreciated - thank you.

January2015

pip10 wrote: »

Hi,

I've been paying what I can afford for around 5 years now through a dmp with step change, but have come into a sum of money, which I hope to use to make full and final settlements.

Like another poster above, I have been comfortable for awhile in that the interest has been frozen and the companies have left me alone.

As I don't quite have enough to pay it all back (I have about 70% of the debt), if the companies refused my offers, could this impact the arrangement negatively - e.g. Could they start adding interest again? or start sending letters and phoning again. I wouldn't want it to go back to what it was like when I first defaulted (basically being hounded). Any thoughts appreciated - thank you.

If you've been in a DMP for that long offer much less to start with, say 25 - 30%. I would advise saying the money is from a relative who is willing to assist you to clear your debts. There is a template letter on National Debtline.

You could go through SC to make the offers, but personally I would negotiate myself as SC seem to insist on treating all creditors equally and whilst some may accept as low as 25 - 30% others won't and you only want to pay them what you need to in order to clear your debts and move forward with your life.

Good luck with it all :beer: