Full and final settlement help thread

fatbelly

hoverFrog wrote: »

Im afraid that I don't even know what that is?

If debts are regulated by the Consumer Credit Act (CCA), you get extra protection.

Credit cards, catalogues, and most loans (unless very large/old) will be. Overdrafts, mobile phones, utility bills etc are not.

Under s77-79 CCA you are able to request a copy of the original agreement and the debt is then unenforceable until they comply. For shorthand this is ofen called a CCA request.

There's a factsheet that sets this out with a template letter here.

https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx

Some creditors never comply and so that debt is effectively dead. As Carboot implies, there's then no point in treating them the same as the others and so they can have a low offer, or nothing.

hoverFrog

I had no idea, thanks, fatbelly.

ruki123

Hi,
I requested copies of Credit Agreements as per the Consumer Credit Act and some of the debts have been deemed as 'unenforceable' for now, however, I will have access to some funds, much less than the actual debt and because the debt will affect my future employability I would like to offer a Full and Fina settlement.

But I'm wary of the fact that by offering a Full and Final offer using the letters I can find online, I will be implicity accepting the debt.

Does anyone have experienced something similar? Could you help with a different letter or adding some kind of wording, something along the lines of 'Without prejudice' ...?

And actually, is my initial assumption right in thinking that sending a Full and Final offer means you are implicity acknowledging the otherwise unenforceable debt?

fatbelly

ruki123 wrote: »

Hi,
I requested copies of Credit Agreements as per the Consumer Credit Act and some of the debts have been deemed as 'unenforceable' for now, however, I will have access to some funds, much less than the actual debt and because the debt will affect my future employability I would like to offer a Full and Fina settlement.

But I'm wary of the fact that by offering a Full and Final offer using the letters I can find online, I will be implicity accepting the debt.

Does anyone have experienced something similar? Could you help with a different letter or adding some kind of wording, something along the lines of 'Without prejudice' ...?

And actually, is my initial assumption right in thinking that sending a Full and Final offer means you are implicity acknowledging the otherwise unenforceable debt?

If a debt is unenforceable because of a defect in the initial agreement, no acknowledgement will change that

If a debt is unenforceable because of non-compliance with a cca request, no acknowledgement will change that

If a debt is unenforceable because it is statute barred, no acknowledgement will change that

A 'without prejudice' letter cannot be used in court as evidence of acknowledgement.

That's why the standard National Debline F&F letter is headed 'without prejudice'

ruki123

Thanks for your reply fatbelly,

I hadn't actually realised that the national debtline letter has the 'without prejudice' at the top, I just read "I can confirm that I am unable to pay the money which I owe in full" and thought that it was not the best wording to include, I think I will remove that part.

All the debts have been temporarily deemed 'unenforceable' whilst they look to locate/reconstructe a Credit card agreement, so I have decided to act swiftly and put the offers forward in the next day or two as they might be more willing to accept before they find the documentation, if they ever do.

ruki123

Just one more thing,

I have seen examples of letters where, as part of the condition for the full and final offer, a request to remove the default is included, are these letters outdated? is it still worth trying?

fatbelly

Probably outdated. See this answer:

https://forums.moneysavingexpert.com/showthread.php?p=74322829#post74322829

ruki123

Thank you for your help fatbelly.

My plan is to combine several letters that I have found online into a single 'without prejudice' letter that will both inform the lender about the consequences of not providing the credit Agreement so far (unenforceability and actions they cannot take until they send a copy of the credit agreement). And on the same letter I will explain that I will have some money available in the next two months and offer it as a Full and Final offer. I might or might not include a line to ask for the default to be removed as part of the condition for the Full and Final settlement, although I know it is very unlikely to be accepted.

I will be sending that letter probably tomorrow and I will post an update once I hear back from them.

redux

I think it might be unlikely to have the default removed, but what might be worthwhile is to look in the history and see if there are grounds to ask the default date be moved to earlier, which would drop it off the credit file earlier.

freshstart11

Agreed a 50% F&F with Cabot over 4 instalments! lovely lady actually I spoke to and have it in writing as well .