Full and final settlement help thread

January2015

Mark80 wrote: »

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.

Put it in writing. Make sure you use a template letter such as the one provided by National Debtline. Wording is important to ensure no future liability if they agree to accept a reduced amount.

counterfeit

Hi

Not sure if this has been asked before but I couldn't find it using the search facility.

On the 13th of March the very last default drops off my credit file. Over the past few years I have worked really hard to negotiate sensible monthly payments with all my creditors (over £100k of debt; it makes me shudder to even think of it). A number of of the debts still have a lot left to pay and won't ever get paid off in my lifetime unless I live to be 120+.

I never want credit in the future but I am extremely pleased to think of my clean credit file next month.

My question is this. If I offer full and final settlement to any of my creditors will there be some sort of marker put on my credit file. after all these years of hard work I am in a position to clear some of the debts but I am happy to carry on paying the minimum monthly payments if it going to affect my credit file.

By the way, my "pointless" credit score with Noddle and Experian is under 550 and I'm assuming this will improve when the default is removed but all I'm concerned about is seeing the report "clean".

sourcrates

counterfeit wrote: »

My question is this. If I offer full and final settlement to any of my creditors will there be some sort of marker put on my credit file. after all these years of hard work I am in a position to clear some of the debts but I am happy to carry on paying the minimum monthly payments if it going to affect my credit file.

By the way, my "pointless" credit score with Noddle and Experian is under 550 and I'm assuming this will improve when the default is removed but all I'm concerned about is seeing the report "clean".

Hi,

Once an account has dropped off your credit file, it cant come back for any reason.

So it matters not a jot how you settle the debt, or for how much, as no record of it will reappear on your file.

Hope that helps.

fatbelly

counterfeit wrote: »

Hi

Not sure if this has been asked before but I couldn't find it using the search facility.

On the 13th of March the very last default drops off my credit file. Over the past few years I have worked really hard to negotiate sensible monthly payments with all my creditors (over £100k of debt; it makes me shudder to even think of it). A number of of the debts still have a lot left to pay and won't ever get paid off in my lifetime unless I live to be 120+.

I never want credit in the future but I am extremely pleased to think of my clean credit file next month.

My question is this. If I offer full and final settlement to any of my creditors will there be some sort of marker put on my credit file. after all these years of hard work I am in a position to clear some of the debts but I am happy to carry on paying the minimum monthly payments if it going to affect my credit file.

By the way, my "pointless" credit score with Noddle and Experian is under 550 and I'm assuming this will improve when the default is removed but all I'm concerned about is seeing the report "clean".

There will be no further mark on your credit files unless one of them successfully takes court action. Even then, you can stop it appearing by paying within a month.

I assume your score will improve but as you understand, it's not a very meaningful number

counterfeit

Thank you for responding so quickly. That's really good news. My wife and I are thinking of moving house in the next year or so so that'll also help if the landlord does a credit check. Having said that, we somehow got through a credit check 6 years ago when we moved here when our credit files came with a safety hazard warning.

manarola

Hi Everyone

new poster here

I have been reading this thread and doing a bit of research, i have been on a DMP with Step-change for three years and have never missed a payment, and so have subsequently paid off a third of our debt.

Which leaves a total of 20,989.75 total to pay off to our creditors as follows

Link Financial - £10,439.77
LLoyds Bank PLC - £3,475.05
Santander Credit cards - £3,443.04
Wescot £3,433.04

I have recently been offered a lump sum of 12k by my in laws to clear it off. I filled out the letter on the national debt-line link, and started using their calculator to formulate offers. this raised a few questions.
1. Originally theses unsecured debts(Credit Cards) were in both myself and my wifes names, do i need to write a joint letters?
2.I see that the creditors acceptance of F&F as far as percentage is concerned varies greatly. Should i, instead of using a pro-rota offer of all the lump sum. Merely offer a percentage of each balance with each creditor, and if so how much?
3.Should i negotiate with one creditor at a time, or all 4?

sourcrates

manarola wrote: »

Hi Everyone

new poster here

I have been reading this thread and doing a bit of research, i have been on a DMP with Step-change for three years and have never missed a payment, and so have subsequently paid off a third of our debt.

Which leaves a total of 20,989.75 total to pay off to our creditors as follows

Link Financial - £10,439.77
LLoyds Bank PLC - £3,475.05
Santander Credit cards - £3,443.04
Wescot £3,433.04

I have recently been offered a lump sum of 12k by my in laws to clear it off. I filled out the letter on the national debt-line link, and started using their calculator to formulate offers. this raised a few questions.
1. Originally theses unsecured debts(Credit Cards) were in both myself and my wifes names, do i need to write a joint letters?
2.I see that the creditors acceptance of F&F as far as percentage is concerned varies greatly. Should i, instead of using a pro-rota offer of all the lump sum. Merely offer a percentage of each balance with each creditor, and if so how much?
3.Should i negotiate with one creditor at a time, or all 4?

The deals that are achievable vary greatly depending on a number of factors.

Debts that are relatively new, and that remain with the original creditor, are unlikely to be settled for much less than is owed, although its always worth trying an offer.

Most people start at around 30-40% of what is owed, and work upwards, but as i said before, usually only companies such as Lowell will entertain such large discounts.

fatbelly

manarola wrote: »

Link Financial - £10,439.77
LLoyds Bank PLC - £3,475.05
Santander Credit cards - £3,443.04
Wescot £3,433.04

I have recently been offered a lump sum of 12k by my in laws to clear it off. I filled out the letter on the national debt-line link, and started using their calculator to formulate offers. this raised a few questions.
1. Originally theses unsecured debts(Credit Cards) were in both myself and my wifes names, do i need to write a joint letters?
2.I see that the creditors acceptance of F&F as far as percentage is concerned varies greatly. Should i, instead of using a pro-rota offer of all the lump sum. Merely offer a percentage of each balance with each creditor, and if so how much?
3.Should i negotiate with one creditor at a time, or all 4?

OK

1. No need to write jointly. You are jointly and severally liable so one or other or both, can negotiate.

2. Definitely don't offer a pro-rata of the available sum. Most creditors refuse your first offer as a knee-jerk reaction. Allow some room for negotiation. Maybe start at 30%.

3. With 12k available, start writing to all 4.

manarola

Thank you fatbelly and Sorcrates, for your advice , the debts are not new, i estimate they are at least 5 to 6 years old including 3 years on our DMP.

Wescot and Link are not original creditors, and LLoyds took over our Halifax credit card debt, as they own them, i think?
Santander is however, an original creditor as we both had credit cards with them....
Although, 12k is the offer from the in-laws , we'll have to pay it back over time, so want to get the best deal possible. Anyone had dealings with link, wescot etc

Also should i include a a paragraph explaining that we have one income which is now under threat, so better for all concerned to negotiate a settlement now before we are unable to keep up present level of payments to DMP?
Another idea i had was to negotiate a settlement with Link Financial who own half our outstanding balance, if successful, lower the existing monthly DMP payments before approaching the other three, what are your thoughts on this strategy?

unicorndeva

Hi all, I've checked through a few pages of this thread to get answers to my questions but could do with clarification on some things... hope that's ok!

We've been on a joint DMP for around 6 years now and have been offered some money by my step dad to try and arrange F and F's. I sent out letters last week and have started negotiations with two out of the many accounts involved.
Reading through this thread, I noticed info regarding obtaining original credit agreements.

My first question: is it worth asking for original CA's and supporting docs. now that I've made offers? My thinking is that if the debt is unenforceable I've more chance of getting them to accept the low offers I've made?

Second question: Is there a template letter I can use to ask for the credit agreements?

Sorry if these have been asked before but thanks in advance for any help offered!