Full and final settlement help thread

fatbelly

cheesypuff wrote: »

I’m about to send of my CCA letters to 9 creditors can anyone confirm whether I need to enclose £1 payment or not? I am reading conflicting reports on this some people saying this is no longer required. It’s just I have no cheque book so would have to go and purchase 9 postal orders and don’t want to do this if I don’t have to .

Looks like we're going to be having this discussion regularly

https://forums.moneysavingexpert.com/discussion/comment/75304790#Comment_75304790

terman

Hi
I have seen claims that for F&F's to be legally binding that the payment should come from a third party.
Is this true?
and if so is it OK if for Mr terman to pay Mrs terman's debts and vice versa?
I have also seem suggestions that you should also provide a gift along with the settlement.


Is any of this necessary or true?


Thanks in advance Mr terman

fatbelly

terman wrote: »

Hi
I have seen claims that for F&F's to be legally binding that the payment should come from a third party.
Is this true?
and if so is it OK if for Mr terman to pay Mrs terman's debts and vice versa?
I have also seem suggestions that you should also provide a gift along with the settlement.


Is any of this necessary or true?


Thanks in advance Mr terman

The gift bit is nonsense. But technically the legally binding bit is correct.

In practice creditors honour their agreements and as long as you have the deal in writing any attempt to start action for the remainder could be defended.

mkbswimstar

Hi, I have 5 defaulted accounts that were registered in 2015. I have been gradually paying them off through a dmp with step change. I'm about to inherit some money and would like to apply for a remortgage or buy to let mortgage in the future.
I've had offers from the debts companies to pay the debts off with a discount but understand that they will show as part fulfilled on my file. 6 years is up in 2021 and I wonder if I should repay the debts in full or save about £5k by taking them up on their offers seeing as the defaults should disappear in 2021. Please can I have people's opinions. Thanks

[Deleted User]

mkbswimstar wrote: »

Hi, I have 5 defaulted accounts that were registered in 2015. I have been gradually paying them off through a dmp with step change. I'm about to inherit some money and would like to apply for a remortgage or buy to let mortgage in the future.
I've had offers from the debts companies to pay the debts off with a discount but understand that they will show as part fulfilled on my file. 6 years is up in 2021 and I wonder if I should repay the debts in full or save about £5k by taking them up on their offers seeing as the defaults should disappear in 2021. Please can I have people's opinions. Thanks

As I understand it, even if you were to pay off the balances in full in the near future the default marker will still stay on your credit file's history for 6 years from the date the account was originally defaulted. It doesn't make any difference if the accounts are soon partially settled or fully settled. I'm a bit hazy about how much of your credit file any bank assessing your credit worthiness for a mortgage would be able to see. I'm assuming they'd have access to the full 6 years history which would definitely show the defaults.


If I've got the wrong end of the stick I hope someone else will be along soon to correct me.


Whatever you decide to do, good luck with it:beer:

fatbelly

mkbswimstar wrote: »

Hi, I have 5 defaulted accounts that were registered in 2015. I have been gradually paying them off through a dmp with step change. I'm about to inherit some money and would like to apply for a remortgage or buy to let mortgage in the future.
I've had offers from the debts companies to pay the debts off with a discount but understand that they will show as part fulfilled on my file. 6 years is up in 2021 and I wonder if I should repay the debts in full or save about £5k by taking them up on their offers seeing as the defaults should disappear in 2021. Please can I have people's opinions. Thanks

You should clear them by F&F. That's 5k towards your deposit.

January2015

mkbswimstar wrote: »

Hi, I have 5 defaulted accounts that were registered in 2015. I have been gradually paying them off through a dmp with step change. I'm about to inherit some money and would like to apply for a remortgage or buy to let mortgage in the future.
I've had offers from the debts companies to pay the debts off with a discount but understand that they will show as part fulfilled on my file. 6 years is up in 2021 and I wonder if I should repay the debts in full or save about £5k by taking them up on their offers seeing as the defaults should disappear in 2021. Please can I have people's opinions. Thanks

I totally agree with Fatbelly - settle the F&F offers and have the £5k towards your deposit.

Whether you partially settle through F&Fs or settle the full outstanding balance of each account, your credit reference agency files already reflect the defaults/poor payment history n each account and this will not change until the defaults eventually drop off six years after they were registered. That means there is no incentive for you to settle in full anyway.

[Deleted User]

A guery for fatbelly or anyone else who might know the answer.


I negotiated a F&F of 31% payable/69% discount which I'm delighted about:j. It's quite a small outstanding balance now but is my next to last outstanding debt so I want to get it paid asap.

When I spoke to them on the phone I asked if they would put in writing (before I was willing to hand the money over) that they would never chase me for the unpaid balance. I can't recall the exact wording but all my other settled creditors sent me a letter promising that.

I received the letter today from this creditor and it doesn't say what I wanted:(. I'd appreciate it if someone can tell me if this is enough please and I should feel confident in paying them;

The parts in red are the bits that I'm querying.

' We refer to your offer to pay a sum in settlement of your account...……….. We have reduced the amount due on your account to the sum that you have agreed to pay.

Once this reduced amount has been paid, where this is recorded on your credit file, this will be updated as partially settled with a zero balance and not as settled or satisfied'. .

I understand the 'partially settled' bit, that's pretty standard, but do you think this reference to 'zero balance' etc is enough of a guarantee for me that it will all be done and dusted once I pay the £480?. The 'amount due' at the top of the letter shows as £480 and not the £1548 that is really outstanding.


Thanks

fatbelly

Hi

I think it's OK. The language is a little odd but partially settled is the correct mark and I think 'reduced the amount due on your account to the sum that you have agreed to pay' only has one interpretation. Likewise 'will be updated as partially settled with a zero balance ' is clear.

However, keep the letter safely for 6 years.

[Deleted User]

fatbelly wrote: »

Hi

I think it's OK. The language is a little odd but partially settled is the correct mark and I think 'reduced the amount due on your account to the sum that you have agreed to pay' only has one interpretation. Likewise 'will be updated as partially settled with a zero balance ' is clear.

However, keep the letter safely for 6 years.

Thanks, fatbelly:T. I knew you'd know:)