Full and final settlement help thread

RW01

Hi, it was (to my knowledge although hadn't been checking my credit rating knowing it would be awful) the first time the default was registered.

I'd normally take the approach of waiting but would really like to get this last debt of my credit score, i maybe just need to bide my time (not a talent of mine unfortunately 😆!)
Thanks

sourcrates

carbootcrazy wrote: »

Had an interesting letter from Wescot today. They are collecting my Lloyds CC debt and I've been paying all creditors £1 token payments for the past 6 months after going self-managed on my DMP so I could build up a F&F fund.

This Lloyds debt is now around £7400 after starting at £15000 in 2013 and being paid down during 4 years with StepChange,

I CCA'd all my debts eventually (didn't even know such a thing as UE debts existed until I'd already repaid about half of my overall debt burden:o). 2 debts came back as definitely UE and the other 3 creditors produced paperwork which they say is compliant:(. I am in the process of getting the paperwork for these 3 supposedly enforceable debts checked out though.


Lloyds/Wescot is my biggest debt and although Wescot have been very reasonable to deal with, Lloyds themselves have been very unhelpful over the years. They were very late to default and kept the debt 'in house' through their own collections departments for years before they let Wescot act as the middle man. Lloyds still own the debt though.


The letter from Wescot asks me to contact them to discuss my plans for payment as they had told me when I went on token payments that they would be reviewing my payment situation after 6 months. They also said that Lloyds have given them permission to negotiate a settlement figure. They don't mention what discount they might offer and want to talk to me on the phone:eek:. They have always honoured their promise just to contact me by letter so I'm wondering what I should do. I don't suppose it would do any harm to see what they have to say, I don't have to commit to anything, and I could always ask for letter contact only afterwards. I would not pay anything at all at the moment as I'm still ascertaining if the debt is UE or not. Supposing it turns out that the debt is kosher this is one I really want gone. I also have a small PPI claim I need to send to Lloyds but am holding fire until the debt is no more. I don't want them using any PPI refund towards the debt repayment.


Any advice please on what I should do next? This is the very first time any creditor has even mentioned the possibility of early settlement.

Yes by all means you can ring them and negotiate a settlement, they will only be authorised to go to a certain amount, but if you don’t want to accept what they offer, just say, I’ll get back to you, and politely hang up.

On the other hand, if you like what you hear, ask them to confirm in writing, and do the deed.

Remember, the client will of given them discretion to a particular amount, you may as well go straight in and ask what the lowest amount is that Lloyd’s will accept, no point beating around the bush with them, go for the jugular !!

Jukesy1982

After some advice if possible in what to do next. I went through payplan to set up an IVA a few years ago.

My husband has received some inheritance and we decided as we would like to buy a house at some point we would pay off the payplan early which would make us debt free.

I contacted payplan and we offered them the current total (not inc interest). We gave them all the info they requested within 24 hours. But they've advised it could be 3-6 months with their variations team to arrange the meeting with the creditors? And that in the meantime the monthly payments we make have to continue and won't be taken off the offer?

This seems to wrong to me.

I don't know whether I'm maybe best to just contact each creditor with a F&F offer myself as I'm guessing it would be quicker. Though would they just say "oh your with payplan, you have to go through them now?"

Can't believe when we finally can pay it off it's made so difficult!

fatbelly

Jukesy1982 wrote: »

After some advice if possible in what to do next. I went through payplan to set up an IVA a few years ago.

My husband has received some inheritance and we decided as we would like to buy a house at some point we would pay off the payplan early which would make us debt free.

I contacted payplan and we offered them the current total (not inc interest). We gave them all the info they requested within 24 hours. But they've advised it could be 3-6 months with their variations team to arrange the meeting with the creditors? And that in the meantime the monthly payments we make have to continue and won't be taken off the offer?

This seems to wrong to me.

I don't know whether I'm maybe best to just contact each creditor with a F&F offer myself as I'm guessing it would be quicker. Though would they just say "oh your with payplan, you have to go through them now?"

Can't believe when we finally can pay it off it's made so difficult!

You're in a formal insolvency solution so your position is totally different from posters on this thread. You need to post on the IVA sub-board.

For what it's worth, Payplan's advice seems correct to me.

Debt Camel has written about it here and you seem to be case 2

https://debtcamel.co.uk/iva-settlement/

[Deleted User]

sourcrates wrote: »

Yes by all means you can ring them and negotiate a settlement, they will only be authorised to go to a certain amount, but if you don’t want to accept what they offer, just say, I’ll get back to you, and politely hang up.

On the other hand, if you like what you hear, ask them to confirm in writing, and do the deed.

Remember, the client will of given them discretion to a particular amount, you may as well go straight in and ask what the lowest amount is that Lloyd’s will accept, no point beating around the bush with them, go for the jugular !!

Thanks, sourcrates. You always give such useful advice:T:beer:

I phoned Wescot as you advised and the man I spoke to was very helpful and patient. Not as much an ordeal as I'd anticipated:j


Unfortunately he said that as it was a Lloyds account they (Wescot) are not able to advise of any likely settlement figure and Lloyds need my proposed amount put to them so they can assess whether to accept it or not. He couldn't even give me any clue as to what ballpark figure I should pitch my offer at:(


The outstanding balance on this debt is now just over £7400 (from a starting point of £15000 in early 2013) and I'm now self-managing my DMP. I've been on token £1 payments for 6 months and hope to continue at this rate or slightly over for a good while yet;). Any advice what my starting offer should be please? I don't want to go in too high and have my hand snatched off as my F&F fund is needed to get all my other debts paid off asap as well.

System

carbootcrazy wrote: »

Thanks, sourcrates. You always give such useful advice:T:beer:

I phoned Wescot as you advised and the man I spoke to was very helpful and patient. Not as much an ordeal as I'd anticipated:j


Unfortunately he said that as it was a Lloyds account they (Wescot) are not able to advise of any likely settlement figure and Lloyds need my proposed amount put to them so they can assess whether to accept it or not. He couldn't even give me any clue as to what ballpark figure I should pitch my offer at:(


The outstanding balance on this debt is now just over £7400 (from a starting point of £15000 in early 2013) and I'm now self-managing my DMP. I've been on token £1 payments for 6 months and hope to continue at this rate or slightly over for a good while yet;). Any advice what my starting offer should be please? I don't want to go in too high and have my hand snatched off as my F&F fund is needed to get all my other debts paid off asap as well.

The people in the know will be along to help you with this but from what I’ve read you could go in at 35-40% and can always raise it if you want to if they decline. I can’t wait to be at this stage! Just started to pay my £1 token payments this is my first month

ac2111

Hi all im more of a lurker on this board, have had succeas today with my smallest debt Robinsonway accepted 350 on a debt of 1157, I offered 250 which was rejected and the gave a counter offer of 868.80 I went back with 350 which was then accepted. I had been paying token payment of £1 for over 2 years. hope this info may help someone else

System

ac2111 wrote: »

Hi all im more of a lurker on this board, have had succeas today with my smallest debt Robinsonway accepted 350 on a debt of 1157, I offered 250 which was rejected and the gave a counter offer of 868.80 I went back with 350 which was then accepted. I had been paying token payment of £1 for over 2 years. hope this info may help someone else

That's really great...and very interesting as we have just been offered a f&f from Robinson's. Our debt is £2800 & they are saying they will accept £1400. We are still paying through SC so I think we need to go self managed and then drop to minimum payments and see what happens.

Can I just ask, have they been OK about you paying £1 payments for such a long time?

January2015

carbootcrazy wrote: »

Any advice what my starting offer should be please? I don't want to go in too high and have my hand snatched off as my F&F fund is needed to get all my other debts paid off asap as well.

Hi CBC :wave:

I would go in at 30% - 35%. They will most likely refuse and you can bat backwards and forwards until you reach a figure you are happy with - or not, in which case you just keep plodding with the token payments.

The problem is the debt is still with the original creditor - albeit that it is being managed by a DCA (Wescot). It is so frustrating that creditors seem to prefer to sell to DCAs for peanuts rather than settle directly with customers for similar peanuts :mad:
I understand why they don't want to accept low offers, but if they are going to sell the debt for that anyway then why not make the first offer directly to the creditor and if that is refused only then they should be able to sell to a DCA

[Deleted User]

January2015 wrote: »

Hi CBC :wave:

I would go in at 30% - 35%. They will most likely refuse and you can bat backwards and forwards until you reach a figure you are happy with - or not, in which case you just keep plodding with the token payments.

The problem is the debt is still with the original creditor - albeit that it is being managed by a DCA (Wescot). It is so frustrating that creditors seem to prefer to sell to DCAs for peanuts rather than settle directly with customers for similar peanuts :mad:
I understand why they don't want to accept low offers, but if they are going to sell the debt for that anyway then why not make the first offer directly to the creditor and if that is refused only then they should be able to sell to a DCA

Thanks very much for your advice, January:T. Nice to see you again, by the way:beer:

I totally agree about the original creditors' reluctance to offer good F&Fs to the people who owe them money. Would save a lot of time and hassle for all concerned. I suppose they don't want to come across as a soft touch. They want to squeeze every last penny out of us while they still have the chance:mad: