Full and final settlement help thread

wowimustlovehim

My partner has debts of around 40K. All with DCA's. He's agreed (and maintained) regular payments. He's now in a position where he can save some money towards possibly some full and final offers - is this acceptable or would they expect him to increase his payments and there by clear the debt faster ?

itallseemedlikeagoodidea

Hi guys, please can I ask some advice.

I have a combined debt of around £40k. It's been managed one way or another. Now a relative has offered to help with a lump sum and I'm trying to negotiate the best F + F deals I can.
The debts with agencies I've managed to get 25% or 30% reductions on for a lump settlement. Should I try for higher than this?

However, the debt that resides with HBOS (it was a Halifax credit card) is more complicated - they have secured an inhibition on my flat.
I've spoken to them on the phone and indicated to them that I will offer a 75% payment for full and final settlement.
One of the staff members indicated to me that there was no reason that they should accept any reduced payment as they have a inhibition on the house anyway.

So, the advice was to write a letter indicating my financial situation with incomings / outgoings etc, etc.

My question is: what should I put in the letter to them? Which reasons will they listen to or will the consider most relevant?

Obviously my goal is to have the inhibition removed and negotiate as low a final settlement figure as possible.

Many thanks in advance!

chilliwack

Hi

A few years ago I had debts of just over £50K spread over several bank loans/credit cards. I have spent the last 3 years paying them back with interest frozen and now got them down to £37K. Have recently been lucky and inherrited some money. Now do I a) pay back the full amount I owe (will they want all the interest as well?) or b) make offers for full and final settlement, I do occasionally get letters from the debt collectors offering a reduced settlement.

Ive no idea what to do, just dont want to do the wrong thing!

Thanks in advance

Goodtimesahead

chilliwack wrote: »

Hi

A few years ago I had debts of just over £50K spread over several bank loans/credit cards. I have spent the last 3 years paying them back with interest frozen and now got them down to £37K. Have recently been lucky and inherrited some money. Now do I a) pay back the full amount I owe (will they want all the interest as well?) or b) make offers for full and final settlement, I do occasionally get letters from the debt collectors offering a reduced settlement.

Ive no idea what to do, just dont want to do the wrong thing!

Thanks in advance

A. Why would you want to pay them back in full, if they have already offered reduced settlements:D
B. If the debts were pre april 2007 then there's a good chance that some or all of them were unenforceable in the first place...sorry I know you have already paid back £13k +:eek:
C. Do not tell them you have come into money due to inheritance, that will be music to their ears, if they know that, they won't accept any deals;)

I suspect they know many could be unenforceable, hence their offers of reduced settlements(also they want to round up lump sums these days rather than management of tedious monthly payments), I would write on telephone them offering them 10-15% max in F&F with a view to going to say 20% max, make sure whatever you negotiate, get them to remove any defaults and onerous data as part of the settlement (see NID thread unenforceability for template letters etc)

Good luck, no point in paying back too much money if it the debts were unenforceable in the first place. Play hard ball, the softer you are with these DCA muppets the more they will try and stitch you up.

chilliwack

Thanks for reply Goodtimesahead,

Am going down the negotiation route, I had forgotten how vile these people can be to deal with, rude, aggressive etc etc. So far though doing well and getting them down.

Thanks for your advice :-)

Tixy

Hi chilli

If your debts are old and now owned by external debt collectors then there is a very good chance you could make quite low settlement offers. You'll need to do this in writing and this link http://www.nationaldebtline.co.uk/england_wales/debt_advice.php explains what to ask for in return and has a template letter.
Any verbal F&F is no use - as you won't have proof of it being F&F and its not unheard of for people to be chased again in 4-5years time for the remainder of the debt.

You could start your offers at around 25% as this will still likely be more than the DCA paid for your debt.

norm79

Tixy wrote: »

Hi chilli

If your debts are old and now owned by external debt collectors then there is a very good chance you could make quite low settlement offers. You'll need to do this in writing and this link http://www.nationaldebtline.co.uk/england_wales/debt_advice.php explains what to ask for in return and has a template letter.
Any verbal F&F is no use - as you won't have proof of it being F&F and its not unheard of for people to be chased again in 4-5years time for the remainder of the debt.

You could start your offers at around 25% as this will still likely be more than the DCA paid for your debt.

When you talk about 25% do you mean 25% of or off the debt?

Eg £4k debt offer £1k - 25%

or

£4k debt offer £3k - 25% off

Tixy

Oo no - 25% in total, 75% off!!

So £4k debt offer £1k (to start with, you can always go up if you need, can't go down!)

(this is only for defaulted debts which have been sold to a third party debt collector though)

norm79

Tixy wrote: »

Oo no - 25% in total, 75% off!!

So £4k debt offer £1k (to start with, you can always go up if you need, can't go down!)

(this is only for defaulted debts which have been sold to a third party debt collector though)

Thanks, I have one from a while ago at £4k. I offered £1k but was told the lowest they would go is £2,700. Used the cash for other debt clearance.

cali_

I am have been on a dmp for the last two years and am paying £1 token payment. Even though it is only £1, I can't do more right now and I have made every payment. Can I sent the f&F letter?