Full and final settlement help thread

Maestra

Hi my husband is paying his debts via stepchange, if we offered a f&f offer on the debts what are the implications?

fatbelly

Maestra wrote: »

Hi my husband is paying his debts via stepchange, if we offered a f&f offer on the debts what are the implications?

There's no real downside to it - just clears your debt more quickly, and at a discount

There will be a partially settled marker on your credit file rather than settled.

I wouldn't use borrowed money to do it but if you have cash available it's a good strategy

Maestra

Thank you. I've received inheritance so just weighing up if worth offering a lump sum to clear it. We'd like to get a mortgage in the future so I guess best to clear debt asap?

HEROWHENZERO

I've been doing a DMP since June 2016, my last 2 credit cards are due to be defaulted this month, none have been sold off to third parties at all, do you think it's worth trying to initiate F&F discussions, or is it too soon? I am seeking help from within the family to raise approx 40% of what I owe.

sourcrates

HEROWHENZERO wrote: »

I've been doing a DMP since June 2016, my last 2 credit cards are due to be defaulted this month, none have been sold off to third parties at all, do you think it's worth trying to initiate F&F discussions, or is it too soon? I am seeking help from within the family to raise approx 40% of what I owe.

Hi,

Full and final offers work best when a debt has been sold on.

You can agree terms with any creditor, but the best reductions are achieved once a debt is sold on, as the company that buys it, pays pennies in the pound for it, so can afford to offer good discounts.

One example is Lowell, who regularly offer between 30 and 60% off the outstanding balance.

HEROWHENZERO

If they pay only pennies in the pound for it, surely if the creditors are willing to accept less from agencies then it would be possible to get an even better deal direct from the creditor. Wishful thinking :-)

Keezing

HEROWHENZERO wrote: »

If they pay only pennies in the pound for it, surely if the creditors are willing to accept less from agencies then it would be possible to get an even better deal direct from the creditor. Wishful thinking :-)

They sell your account as part of a bulk deal.

So the DCA pays X for, say, 250 accounts and the lender then gets a lump sum which they can recognise immediately.

If they had to negotiate a settlement figure with each of those 250 debtors it would be time consuming, and a large percentage of them wouldn't result in any deal at all.

Shepherd54605

Hello everyone new poster here

I have recently placed a complaint with the ombudsman for a series of loans maybe 12 or 13 separate loans which I had with Wonga over a short space of time around 4 years ago.
The majority of these loans were rolled over just to keep my head above water.

I contacted Wonga in 2015 and asked them to look into my loans and I only just read recently of success with the ombudsman that other people were having and decided to lodge my case with them.

I have received a interesting and disappointing response from them today which I don't fully understand. I don't understand what jurisdiction Wonga has over the ombudsman investigating a claim or complaint. Is there anything I can do ?

The email from the ombudsman reads

Wonga have emailed us a copy of the final response that they issued to you.
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Looking at email you made a compalint to them on 12 April 2015 and they investigated your compalint and issued an response on 11 May 2015.
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At the bottom of the final response it states:
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This is our final response but if you’re not satisfied with it, you can refer your complaint to the Financial Ombudsman Service within 6 months of the date of this response.
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From what we’ve seen so far, it looks like you contacted us more than six months after the date the business sent you their final response.
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Outside this time limit, we can generally only help if the business agrees that we can get involved. In your case, the business hasn’t agreed.
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We might still be able to help if there were exceptional circumstances that meant you didn’t contact us within six months.!!
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So please let us know your reasons for the delay as soon as possible – including any information that supports what you’re saying.
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Once you’ve replied, we’ll look into what you’ve said – and let you know if we can go ahead.
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Please let me know if you have any questions.
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Shepherd54605

Mods please delete my post I believe I have posted in the wrong thread

My apologies

Mark80

Hi,

I want to negotiate with some of my creditor a full and final settlement figure. Should I trust them and pay what we agreed on the phone, or should I request letters from them to confirm what we've discuss?

Or better to send them letters and to wait for their reply?

Any other advice would be welcome.

Thanks a lot.