Full and final settlement help thread

National_Debtline

Hi DrWatson

DrWatson1 wrote: »

Fairly quick question. I have written to my creditors offering F&F settlements. One has written back asking for Income and expenditure and details of what I owe elsewhere. I owe around £60k to 8 creditors, and am currently paying £5pm to each of them on a DMP.

Are there any advantages or disadvantages of providing this information - particularly relating to my other debts? Might they be willing to settle for a lower figure if they see how much I owe elsewhere??

Stepchange might be able and willing to negotiate this on your behalf if you ask them. These creditors ought to already know a reasonable amount about your general circumstances and the other debts that you owe based on the correspondence that will already have taken place between them and Stepchange, so I'm not sure why one has written asking for this info all over again - it could simply be that they have sent you a generic template response.


Dennis
@natdebtline

DrWatson1

I'd prefer to negotiate settlements with them directly. I'm considering going self-managed, and depending how I get on dealing with them directly on this will have a bearing on my decision.

My settlement offer was made with the "gift from a relative" caveat, and I only wrote to the smaller creditors initially to get a feel for the process before I consider making settlement offers to the larger creditors.

The letter they sent does feel like a generic letter - it's from Wescott - I don't know if it's just part of their process to fish for further information?

National_Debtline

Hi again

DrWatson1 wrote: »

I'd prefer to negotiate settlements with them directly. I'm considering going self-managed, and depending how I get on dealing with them directly on this will have a bearing on my decision.

My settlement offer was made with the "gift from a relative" caveat, and I only wrote to the smaller creditors initially to get a feel for the process before I consider making settlement offers to the larger creditors.

The letter they sent does feel like a generic letter - it's from Wescott - I don't know if it's just part of their process to fish for further information?

There's nothing wrong with handling the negotiations yourself if that is your preferred approach.


The most likely reason for what appears to be a generic letter from Wescot is that it's simply the easiest, cheapest way for the creditor to respond at this stage. You may find you have to reiterate your offer more than once before you get more tailored replies. Setting a deadline for them to agree to the offer after which your relative will withdraw it can often be a useful way of getting their attention - though with that approach you need to be prepared to act on any ultimatum you give the creditor.


Dennis
@natdebtline

redux

One reason for asking for an update to your circumstances might be that nowadays they are obliged, or they say they are, not to unfairly force you into making offers you can't afford, and things like mortgage or rent and utilities are deemed to have priority.

That said, if they already have information, and you say things are pretty similar, there doesn't seem much point in them insisting.

What I said in the first paragraph about rules or practice would probably also be why firms seem very resistant to accepting large payment by new credit card, even if the payer insists it has a long 0% balance transfer offer, as this could ultimately be just running people back into more interest-bearing debt.

Austinhead

I have debt with 2 credit cards and 2 overdrafts, total is around £7k. I have been paying them all back at a much reduced rate with frozen interest for 5 years, my file shows a late payment from June 2011(ish) with the first defaults around 12 months later.
I now have some money, enough to cover the debts and would like to negotiate a f&f settlement. Does this need to be done in writing? I did speak to both credit card companies around 18 months ago, they offered slightly reduced amounts but said it wouldn't be f&f.
Is it worth insisting on f&f given the age of the debt? Does the debt go from my file at the point of the initial late payment or the first default?
Thanks in advance.

fatbelly

The entry on your credit file disappears 6 years after the default date.

Creditors refer to f&f as 'partial settlement' and that is how the file is marked, if the entry still appears.

Yes, make an offer in writing and see what comes back.

Austinhead

What difference does it make paying in full or a partial? I'm guessing either way this will be gone in another 12 months?. Or does that piece of information stay on file?

I am looking to take on the mortgage after a recent separation, and whilst my affordability is fine, I don't want my credit to affect this where possible.

fatbelly

Austinhead wrote: »

What difference does it make paying in full or a partial? I'm guessing either way this will be gone in another 12 months?. Or does that piece of information stay on file?

I am looking to take on the mortgage after a recent separation, and whilst my affordability is fine, I don't want my credit to affect this where possible.

When the entry is gone, it's gone.

So the advantage of full over partial - not much.

[Deleted User]

fatbelly can you just clarify please whether the account disappears from the credit files 6 years after the date of default or 6 years after the F&F. My defaults date from early summer 2013 but F&Fs ( with a bit of luck that I can get them really low;)) might not be until around Christmas this year.

Thanks:beer:

Austinhead

From my understanding, it is the date of the first default on the account.