Full and final settlement help thread

Tixy

Hi Cali

You can only send the F&F letter if you have some money with which to make an offer.

If you do have a lump sum then they may be favourable to accepting it as you are only currently making token payments so it will currently take them ages to collect in the debt.

cali_

Tixy wrote: »

Hi Cali

You can only send the F&F letter if you have some money with which to make an offer.

If you do have a lump sum then they may be favourable to accepting it as you are only currently making token payments so it will currently take them ages to collect in the debt.

Thanks Tixy, the debt is under £900 and I can borrow upto £400 from a relative. Do you have a link to the letter I should send? And do I still continue to make the token payment until they respond?

It's with mbna. When I lost my job I sent letters and rang them, asking them for reduced payments and stopped charges. They ignored me and I couldn't make the min payments so they sold the debt to a dca and my credit file was defaulted. I have asked them to send me the original signed notice that should have been sent (they never sent) but they only gave me a copy version. Anyway can I ask to have the default removed as pary of the f&f if they ask for more then I can borrow?

Tixy

Hi Cali

This contains a template letter and a factsheet on offers
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

But you might also want to look at this letter http://forums.moneysavingexpert.com/showpost.html?p=30356419&postcount=27 which asks for the default to be removed as well - I'm not sure how successful these are but it doesn't hurt to ask.

Whichever letter you use, in your circumstances I would adapt it slightly so that it says that a relative is prepared to help you pay off a debt in full, so that if they decline your offer they cannot still demand the money anyway towards the full balance.

Remember to go in with a lower offer than you can afford to start, so that you still can afford to increase it a bit.
And yes you should continue making your payments until they respond.

Good luck!

fatbelly

MBNA often make offers (before they sell the debt) at around 33%,...

Hang on - you said it's with MBNA but they sold it to a debt collector.

If it's been assigned to a third party (often DLC) then it's not with MBNA any more. How easy it is to do a deal depends on the new owner. I'd still start around the 30% mark though.

Happiness6500

I have debts of around £22k. I have an inheritance of £10K. I want to know best how to proceed .. debts as follows and what I am considering doing, but advice sought on what right approach should be. What is a resonable amount to offer each .

Got into this situ overspending and then dropping income ie , daughter off to uni and dropped child benefit and tax credits by about £200 per month. Salary of £1500

I am in full time employment , so have means to pay back . just cant afford to meet all the payments . Am on a dmp since October , paying £237 a month only other detail of importance is I am a single parent, have a 16 yr old son in school , am in a council property so only a little rent arrears but is being repaid in an arrangement , should be clear about august.

Creditors ````
Outstanding
Blackhorse Loan - £10K was new loan last august paid hardly any !
Capital One CC - £1.1k - in query over charges and ppi !
Lloyds Tsb Loan - £7.4k Phoned today settlement figure is £6.8 k
Lloyds Tsb Overdraft - £0.3k
Next Directory Store £0.7k
Payday UK loan - £0.6k
QuickQuid loan - £0.3k
Littlewoods Store - £2.2k
Money Shop Loan - £0.2k

Total £22.8 k



First off is it fair to be selective ..I dont want to offer blackhorse a settlement If i could settle the rest (excluding capital one who i have issue with and am thinking of using the charges and ppi as a bartering tool) I would be in the position to make full payment per month to the black horse loan ie £233 per month as this is almost the amount i was paying on my dmp. They did however lower the interest rate as per the dmp till october , but to bring this account up to date i would need to find £1.4 k so i would necessarily have to take this from the £10 k allowance before i offer to the rest

So i know you are supposed to be fair in dealings with creditors , so is what im thinking fair. Or would anyone in the know suggest a better plan please , please please !!!

None of my accounts are in the hands of debt agencies

Also re Lloyds loan . I called them today , normal settlement per them in the next 30 days would be £6.8 k .. What would be reasonable that they may accept less onf F & F.

Also CCCS suggest i send each a letter with an accompanying list of creditors and planned F & F , but is it wise to let them know how much i have to share out !

Your help gratefully received , I hope ive put enough detail in ,

Thanks in advance

Andes

I am determined to settle my £20K debts and not go bankrupt as my DMP has long since advised me to do. I now have access to an amount of money to go toward them. DMP said it wasn't enough so I've taken them all back and have written to each of the 7 creditors with full and final settlement offers.

Two (tho same debt agency) I spoke to on the phone, they agreed an amount and I asked them to put it in writing. Verbally they said they'd mark my credit reference file as partially paid but no balance outstanding.

In the letter I received this morning it states:
"We are prepared, without prejudice, to accept £680 in full and final settlement of the above account provided that payment is received by the 24th October 2010".

This amount is just over 20% of the debt. The other letter said exactly the same although for £180.

Now I'm wondering what the 'without prejudice' means in this context. Does stating !!!!!! mean that the debt can't be pursued by anyone else? Can they still sell it on or chase me at a later date?

I understand them marking the file partially satisfied rather than 'satisfied' as I've only paid part of the amount. What I don't want is it being pursued sometime in the future.

Should I get them to put that in writing too or is what I have sufficient?

Many thanks for advice. I'm excited about two down, five to go!

DVardysShadow

Andes wrote: »

I am determined to settle my £20K debts and not go bankrupt as my DMP has long since advised me to do. I now have access to an amount of money to go toward them. DMP said it wasn't enough so I've taken them all back and have written to each of the 7 creditors with full and final settlement offers.

Two (tho same debt agency) I spoke to on the phone, they agreed an amount and I asked them to put it in writing. Verbally they said they'd mark my credit reference file as partially paid but no balance outstanding.

In the letter I received this morning it states:
"We are prepared, without prejudice, to accept £680 in full and final settlement of the above account provided that payment is received by the 24th October 2010".

This amount is just over 20% of the debt. The other letter said exactly the same although for £180.

Now I'm wondering what the 'without prejudice' means in this context. Does stating !!!!!! mean that the debt can't be pursued by anyone else? Can they still sell it on or chase me at a later date?

I understand them marking the file partially satisfied rather than 'satisfied' as I've only paid part of the amount. What I don't want is it being pursued sometime in the future.

Should I get them to put that in writing too or is what I have sufficient?

Many thanks for advice. I'm excited about two down, five to go!

You have posted this 4 times on 2 running threads and started 2 new threads. Please don't crosspost.

Reply on https://forums.moneysavingexpert.com/discussion/2796898


Edit. Some tidy person has removed both the new threads - including the one I linked to.

Mudd14

When people send off the F&F letters do you include a statement of what you are offering to each credit company as shown on the national debt advice website?

Tixy

Mudd

If you were offering every creditor the same percentage then you could include an overall statement, although even then some people might decided not to.

But more often people try to negotiate with creditors individually, either because they cannot afford to pay them all in one go or because they think they will get better deals from some creditors than others (eg if a debt has been sold to a third party they are likely to accept less than an original creditor. When people are making those type of offers then you wouldn't mention any other creditors or offers at all.

jfwmb88

I'll just jump into it here. I own a credit card linked with Santander, owing £1800. I have been paying minimum payment for a long time now and have not defaulted once. I have already sent one proposal settlement letter (F&F) a while back but received nothing. I offered £1000. I'm currently a mature, full time student and have just enough money put by in order to make the offer again. I don't wish to default but if it makes it more likely they will then accept a F&F I guess I will have to consider it. I have applied for other credit cards in order to transfer the debt where I have asked to transfer almost the full amount, but have been declined.

I would be really thankful for any advice and thank you all for your time! :)