Full and final settlement help thread

[Deleted User]

fatbelly, you're always able to answer everyone's queries and worries and I wonder if you can give me a bit of advice with one of mine please.

Currently I have a basic bank account as I'm on a DMP and it's all I could get when I needed to open a 'clean' bank account at its outset. I'm hoping to have a full bank account once the DMP is over and my credit file is healthy and I wondered what steps I could take towards the likelihood of being accepted.


My worry is one debt I have with AP markers on. They have never defaulted and I'm now down to the last £900 still owing. When I was with Stepchange over 4 years this creditor never put AP markers on, just this last few months when I am self-managing, even though the payment they are getting each month is exactly the same as they were getting before. I could pay this debt off in full today but I suspect the AP markers will stay for another 6 years regardless. Do you think that one blot on a, hopefully, blemish free record when my defaults all fall off my other accounts at the end of 2019/early 2020 will prevent banks viewing me as a desirable bank account holder please?

Max_and_sasha

Hi carbootcrazy

I did have one creditor marking my file with AP but I can't remember who but I phoned them up and explained to them that I should have been defaulted and luckily they did I was only paying them £5 pm. I think you should, if you are going to offer full and final settlement make that part of the deal that they remove the ap marking on your credit file, if you don't ask you don't get and if they are desperate for the money hopefully they will.

Remember to get it in writing that the account will be closed and no one else will pursue you for that money, good luck

Max

fatbelly

carbootcrazy wrote: »

Currently I have a basic bank account as I'm on a DMP and it's all I could get when I needed to open a 'clean' bank account at its outset. I'm hoping to have a full bank account once the DMP is over and my credit file is healthy and I wondered what steps I could take towards the likelihood of being accepted.

I'm not sure what extra facility you are looking for over and above a basic account. I don't think I really use any facility over and above what a basic account would have.

But it's a good ambition to be debt-free and have a clean file.

To that end, Max's answer is good. Apart from that it's just a case of being on thee electoral roll, having a stable address history and having some product that shows you can manage credit.

Occasionally, you need to dip your toe into the water and see who will allow you to sign up for the sort of account you want. I'd suggest leaving 6 months between applications though.

sourcrates

Only real difference between a basic account and a normal current account, is the fact they provide you with an overdraught with a current account, and we all know what bad news they can be !!!!

[Deleted User]

fatbelly wrote: »

I'm not sure what extra facility you are looking for over and above a basic account. I don't think I really use any facility over and above what a basic account would have.

But it's a good ambition to be debt-free and have a clean file.

To that end, Max's answer is good. Apart from that it's just a case of being on thee electoral roll, having a stable address history and having some product that shows you can manage credit.

Occasionally, you need to dip your toe into the water and see who will allow you to sign up for the sort of account you want. I'd suggest leaving 6 months between applications though.

Thanks for the reply, fatbelly:T

I fulfil those requirements. Have been on the electoral roll at the same address for 40 years:rotfl:

Also, I checked Noddle for cards I might be eligible for in an attempt to start rebuilding my credit worthiness. I was given one last December with a credit limit of £500 (a far cry from the bad old days when I had £15000+ each on a fistful of cards and we all know where that got me:o). I just use it to pay for my monthly petrol (which I have to buy anyway) and scrupulously repay in full every month. I'm not tempted to use it for anything else. It will be interesting to see if my good work results in them offering me a higher credit limit after the first year is up. I definitely DON'T want one but it might prove to me that my reliability with money, albeit on a very small scale, is being recognised:j

sourcrates wrote: »

Only real difference between a basic account and a normal current account, is the fact they provide you with an overdraught with a current account, and we all know what bad news they can be !!!!

Thanks for the reply, sourcrates:T

I certainly DON'T want an overdraft! Been there, done that:eek:
I want an account where they pay interest if a certain amount is deposited each month (not necessarily to be kept there) and some DDs are taken out. In other words an account that I might get something back from;). OH has a couple of accounts with banks that pay him a bit of interest each month. Knowing the banking industry though I expect these sort of accounts are on the way out as they are not too profitable for the banks;)

Also, my own bank, Nationwide, has some nice saving offers but they are only eligible to people with their 'regular' accounts and not the basic one:(

fatbelly

carbootcrazy wrote: »

I certainly DON'T want an overdraft! Been there, done that:eek:
I want an account where they pay interest if a certain amount is deposited each month (not necessarily to be kept there) and some DDs are taken out. In other words an account that I might get something back from;). OH has a couple of accounts with banks that pay him a bit of interest each month. Knowing the banking industry though I expect these sort of accounts are on the way out as they are not too profitable for the banks;)

Also, my own bank, Nationwide, has some nice saving offers but they are only eligible to people with their 'regular' accounts and not the basic one:(

Virgin has a basic account that pays interest. It's only 0.75% but 'every little helps'

If you're not actually building up savings then one that pays monthly cashback is better. Again it won't be more than a few quid, but most banks do a variant. You shouldn't need a 'perfect' credit file to get one.

farmeress

I am currently trying to tackle my debts with F&F offers, and am hoping for some advice regarding an overdraft debt with Barclays of £1460. I have offered them £700 (from family member) as F&F but they have rejected this offer, but state they will reconsider if I am prepared to increase my offer. I have previously increased from £600. It seems like a long drawn out game of chess, but I just want to sort my finances and don't know what my next move should be.
I have debts totalling almost £13k and I am making offers on all of them.

My question is:
should I send another letter increasing my offer to 60% (I allowed some bargaining room) and inform them of my other debts and the amount owed to make them aware that all creditors are receiving pro rata offers? Or just wait a while and try again in few months? (although I just want to be debt free asap)

Any advice will be appreciated... I'm rubbish at negotiating

sourcrates

farmeress wrote: »

I am currently trying to tackle my debts with F&F offers, and am hoping for some advice regarding an overdraft debt with Barclays of £1460. I have offered them £700 (from family member) as F&F but they have rejected this offer, but state they will reconsider if I am prepared to increase my offer. I have previously increased from £600. It seems like a long drawn out game of chess, but I just want to sort my finances and don't know what my next move should be.
I have debts totalling almost £13k and I am making offers on all of them.

My question is:
should I send another letter increasing my offer to 60% (I allowed some bargaining room) and inform them of my other debts and the amount owed to make them aware that all creditors are receiving pro rata offers? Or just wait a while and try again in few months? (although I just want to be debt free asap)

Any advice will be appreciated... I'm rubbish at negotiating

Hi,

The unfortunate problem with making settlement offers, is that its all about negotiation.

At least they have said they will consider a higher offer, so they are willing to play ball, you may have to abandon the pro-rata arrangement, and go off piste with some creditors to achieve the settlement you want.

In your letter, try and emphersise why accepting the offer would be a good idea for them, the money from the family member is only available for a short time, the offer of a lump sum now against monthly payments for years, try to sell it to them.

Lastly, when you have a deal, get it signed off in writing, word it so they wont be able to chase you for the remainder of the debt, National Debtline have a good template letter on there website for just this purpose.

fatbelly

farmeress wrote: »

I am currently trying to tackle my debts with F&F offers, and am hoping for some advice regarding an overdraft debt with Barclays of £1460. I have offered them £700 (from family member) as F&F but they have rejected this offer, but state they will reconsider if I am prepared to increase my offer. I have previously increased from £600. It seems like a long drawn out game of chess, but I just want to sort my finances and don't know what my next move should be.
I have debts totalling almost £13k and I am making offers on all of them.

My question is:
should I send another letter increasing my offer to 60% (I allowed some bargaining room) and inform them of my other debts and the amount owed to make them aware that all creditors are receiving pro rata offers? Or just wait a while and try again in few months? (although I just want to be debt free asap)

Any advice will be appreciated... I'm rubbish at negotiating

This is why I usually say, at this point, try phoning. You can point out that you have already increased your offer once, and ask them what figure they had in mind as they haven't said that yet.

Have some rough figures, and their percentages on a scrap of paper and see if you can drive them down from their target figure.

If you can reach agreement, they must confirm it in writing.

If not, just say you'll be back in touch later in the year.

Most times you can have a reasonable conversation. If you do get a numptie at the other end then terminate the call.

Radar_UK

Radar_UK wrote: »

I'm after a little advice please.

I have been paying my debts off via a DMP and have paid off one debt, an overdraft, in that time. I started the DMP at the end of 2012 and am currently left with £3000 of debt, paying £200 a month, and have paid off £16000.

I am about to get some money and was wondering if I am better off just paying the debt off in full or should i make F&F offers on the remaining debt.

With the money I am about to get I am hoping to use the remainder towards a deposit for a mortgage. Will making F&F offers damage my chances of getting a mortgage more than settleing in full?

For info one of the debts shows as defaulted 06/13 and the other 06/15. This is despite me entering the DMP in 2012.

Further to this...

I have been through my paperwork and have a default notice from the debt showing as defaulted on 06/13 dated 10/12. I also have a default notice from the debt listing default as 06/15 from 12/14.

It's not a massive difference but shouldn't the defaults be listed from the dates the letters were sent to me?

I am thinking of settling in full the late on and making a f&f on the other as it'll drop of my credit report much quicker. Does this sound like a reasonable idea? I am assuming the impact of a partial settled is a lot worse than settled...