Full and final settlement help thread

Spoonhead88

sourcrates wrote: »

Difficult one to call, sometimes a creditor will accept a cheeky offer to clear an account, sometimes not.
Defenetly works better with a DCA as they will of bought the debt for much less than its face value, and can afford to discount accordingly.

No harm in trying you luck though, they can only say no.

Cheers bro/brotte, didn't think anyone else would be on here this late. I owe them £1160 and was thinking of starting off with a 40% offer. Is that too cheeky?

sourcrates

Spoonhead88 wrote: »

Cheers bro/brotte, didn't think anyone else would be on here this late. I owe them £1160 and was thinking of starting off with a 40% offer. Is that too cheeky?

You gotta start somewere, give it a go, for the cost of a stamp it's worth a punt !!!

mrsdumplin

Hi All,

I have multiple creditors and have been offered a lump sum by a relative to settle my debts, how would you phrase the letter to show them its a pro rata settlement? and is it ok to say that the money is lent on the proviso that it settles all my debts? and would you also state in this letter you are expecting a change in circumstances in the near future (9months !)

Many thanks
MrsD

Daisypop

Hi all


Just need some advice please. I have been on my DMP for just over 4 years and have paid 16K towards my debts with about 12K to go. Over the last few months I have had to reduce my payments into the DMP due to financial problems ie boiler breaking and needing to buy a new one and also my 2 little dogs have been poorly and have unfortunately cost a lost at the vets. I cant increase my payments for the foreseeable therefore the length of the plan has increased.


I would like to offer some full and final payments to some of my creditors. I'm with stepchange and they have said I can do this. My relative who loaned me the money for the boiler can help me out a bit. Question is some of the remaining debts are pre 2007 so do I CCA request them first or do I just ask for a settlement and of they aren't negotiable then CCA request them? Or, do I say I would like to discuss a settlement but require CCA info to do that?


Thanks for any advice.

fatbelly

As long as they are CCA debts (credit cards, loans, catalogues mostly) then you can request a copy of your agreement at any time - you don't need to explain why and they don't need to be pre-2007.

You've nothing to lose by doing so. It can only strengthen your hand.

Make the request formally using the National Debtline template

Daisypop

Thank you fatbelly I will request then first then see if they will accept

hannahkaty

I have been making monthly payments on some debt owed to Wescott and Lowell - and have just gotten a tax rebate that i want to use to pay off that debt in full. i was going to call them up and ask them about a full and final settlement offer. Should i keep making those minimum payments in the mean time?

hannahkaty

Speaking with a DCA that i owe £1500 too and am currently making £25 a month repayments too. I said I would like to make an offer of £500 (which is a portion of a tax rebate) and stated that I intend to use the rest of it to pay off two other debts of £1000 and £800 (making offers to them as well).

They're saying that any offer i make would mean the mark on my credit file would be a partial settlement and not full and final and that my debt would then fall off my file 6 years after my default date (which was in 2013). i've seen others here making payments of less and getting a full and final settlement, so should i persist with a full and final settlement by post and not accept the partial mark or is partial settlement better than nothing?

sourcrates

hannahkaty wrote: »

Speaking with a DCA that i owe £1500 too and am currently making £25 a month repayments too. I said I would like to make an offer of £500 (which is a portion of a tax rebate) and stated that I intend to use the rest of it to pay off two other debts of £1000 and £800 (making offers to them as well).

They're saying that any offer i make would mean the mark on my credit file would be a partial settlement and not full and final and that my debt would then fall off my file 6 years after my default date (which was in 2013). i've seen others here making payments of less and getting a full and final settlement, so should i persist with a full and final settlement by post and not accept the partial mark or is partial settlement better than nothing?

Hi,

They are correct yes, the title is a little mis-leading, what you are actually trying to do is settle the outstanding balance for less than what is currently owed, it should be re-named "partial settlement offer", as that is a more accurate description of what your attempting to do.

In order to achieve a full and final settlement, and to have your credit file marked as "fully settled", you would have to pay the full outstanding balance.

If you make a partial settlement offer, paying less than what's outstanding, then it will be marked as a "partial settlement".

Either way the default marker will still fall off after 6 years so in the long run makes little difference to your credit file.

I hope I've explained it clearly enough.

hannahkaty

Thank you. Yes that does make sense. I have seen (on here and other forums) people making settlements of less than the full amount owed and having their debts marked as fully satisfied? Am i misunderstanding their settlements?