Full and final settlement help thread

fatbelly

cyp2011 wrote: »

How do you know who to send the letters to as i wish to send in !!!!!! offers .We get statements from the banks and some state collections departments but we do have letters from albion , BLS and blair oliver and scott .BLS have not wrote to us in over a year and bLs has been 2 years , they were the worst so i dont want to go digging them up again if i can deal direct with the bank
We have default written on all except 1 account and after over 2 years would realy like to see the back of it all although we cant afford the full amount so i was going in with a offer of 25% .These have been on £1 payments for near 2 years now so can i ask if you think this is a sensible offer but i dred the fact they will want more .
I dont want to be selfish but we no longer own our home anymore due to debt and i feel quite bitter i have to hand over what little is left even though many will say we got in this mess but i also think they should not have lended the money knowing our problems and low income at the time .As advisors say they should not lend money the people cant afford

If a debt has gone quiet for two years, I'd leave it alone. For those who are writing to you, 25% is a good starting point but ideally you should leave some room for negotiation - at least 5 percentage points. I wold use the address that was on the letter you were last sent. If that is a collector, they will refer your offer to ther 'client'.

Use the standard letter but don't feel that you have to give them an enormous amout of info. You are in rented accommodation (so charging orders are out of the question for them) and on low income and so their choice is a lump lum now or £1 per month for the next 1000 years.

cyp2011

Thankyou
Although i have the letters here ready to go i am so nervous in starting off something i might regret and not sure i can bring myself to post them
My husband said the same as 2 years has passed on 1 ignore it ,but the thing is ignoring it dont make it go away on the credit file .Although renting is great but after over 15 years of being a home owner and my husband longer it feel like home no longer has a meaning .I suppose in this uncertain world and my husbands health issues it most probably is the best way forward ,if we were 20 again starting a fresh would not seem so daunting . Reading this forum has been a reief to me as sometimes you think you are the only one

gardnt1

Looking for a bit of advice.... I currently owe approx 38K amongst 9 lenders and I am on a DMP managed by CCCS since October of last year paying around £485 monthly.
A family member has offered like many others on the board to give me a lump sum.
The lenders are:

Smile Loan
Smile Overdraft
Smile Credit card
MBNA
Very
Next
NRAM loan
Lloyds TSB
Egg


Mbna are now in proccess of default, and are considering selling debt on (approx £9500).
Of the others , just default notices every statement etc...


I was going to start with all pro rata at 25 % and work up to 50% max but wondered whether as most are with original lender if it was worth doing or keep lump sum back until a date further in future?

Any advice would be welcomed.... thanks

cyp2011

I cant help advise anyone else on settlements as i am now starting my roller coaster ride
Last night i popped income and expenditure forms to all lenders and included a very low settlement figure ,decided 25% was too high to start considering our position and they can see it infront of them while they look at the offer .I dont expect them to except but it will show i wont be putting my £1 a month up in the near future and not able to settle the debts unless they go for a very low settlement .They can see exactly what come in ,what go out ,the debt we owe in total and its their decission if they want to take what they can and run or continue for £1 month and i did not say it but bankruptcy look a better option for us later down the line as we no longer have anything to loose , and they must see that from the figures

jules1973

gardnt1 wrote: »

Looking for a bit of advice.... I currently owe approx 38K amongst 9 lenders and I am on a DMP managed by CCCS since October of last year paying around £485 monthly.
A family member has offered like many others on the board to give me a lump sum.
The lenders are:

Smile Loan
Smile Overdraft
Smile Credit card
MBNA
Very
Next
NRAM loan
Lloyds TSB
Egg


Mbna are now in proccess of default, and are considering selling debt on (approx £9500).
Of the others , just default notices every statement etc...


I was going to start with all pro rata at 25 % and work up to 50% max but wondered whether as most are with original lender if it was worth doing or keep lump sum back until a date further in future?

Any advice would be welcomed.... thanks

I have half of the ones you have (the last 5 on your list) and I offered settlement last week and 40% to all of them.

So far Very have refused, as have Nationwide.

I will keep this thread updated with any successes I have. It is always good to know what companies will settle at

cissko

Hello,

I am in desperate need of help please.

I have been on CCCS for more then a year now. A couple of months after I joined, I was offered a new job for almost double the salary I used to earn.

On top of the creditors I was repaying through CCCS, I had a big debt with family members. Within a year I was able to pay them back about £10K. I still owe them £6K. In order to be able to repay my family, I did not inform CCCS about my new jod (and better salary).

A few months ago, they asked to review my account and I have not responded to them yet.

Having repayed a big chunk of the entire debt to my family, I am now contemplating repaying my creditors with F&F settlements. I could comfortably settle some of them that are less themn a 1000 pounds. I have 3 of them over a 1000 pounds only.

I made some enquiries and was contacted by First Step Finance yesterday.

My total debt is £7633 (£4 of which is split into 3 accounts with Metropolitan / HSBC) which I reckon I could save by december this year. FSF told me the worse case scenario, I would be repaying incl. their fees £5100 and best case scenario £2900 pounds.

I have seen a lot of negative feedback about FSF and am not too comfortable dealing with them although it seems I would end up paying less.

On the other hand, I am scared to ask inform CCCS about my situation seeing they would take all the money i am able to save at the moment to repay my creditors and i would not be able to pay my family back anymore.


I would like to offer F&F to my creditors but do not know if I can do this without telling CCS about it. If i did, would they stop the agreement I have with them ? If so, i would end up being harrassed again by the creditors ? I wouldn't be able to offer F&F to all of them at the same time.

Shall i keep quiet with CCCS and save until I have enough money to make F&F to all creditors ar shall i speak to them ?

Has anyone had this issue before ?

Please help.

gardnt1

gardnt1 wrote: »

Looking for a bit of advice.... I currently owe approx 38K amongst 9 lenders and I am on a DMP managed by CCCS since October of last year paying around £485 monthly.
A family member has offered like many others on the board to give me a lump sum.
The lenders are:

Smile Loan
Smile Overdraft
Smile Credit card
MBNA
Very
Next
NRAM loan
Lloyds TSB
Egg


Mbna are now in proccess of default, and are considering selling debt on (approx £9500).
Of the others , just default notices every statement etc...


I was going to start with all pro rata at 25 % and work up to 50% max but wondered whether as most are with original lender if it was worth doing or keep lump sum back until a date further in future?

Any advice would be welcomed.... thanks

I have had a few responses....most as expected on a 25% offer...
MBNA has passed to debt clear recoveries, who will accept 35% as partial settlement but neither mbna or third party will pursue balance or matter further etc..
Lloyds would take 50%
very say no
next say no
egg say no also...others have said no too...still waiting on smile and nram

I am a little confused in direction to take now as the idea of a full/final was one in which I thought would clear my debt and my CCCs payments, but if only some agree then although i'm clearing debt, I am still maintaining the same monthly payment.....part of me thinks keep the full/final money safe for rainy day especially as some are not budging and maintain as I am.. the sensible half says the aim is a Debt free day and it will be sooner if i can agree F/F....any thoughts/advice?

fatbelly

gardnt1 wrote: »

I
I am a little confused in direction to take now as the idea of a full/final was one in which I thought would clear my debt and my CCCs payments, but if only some agree then although i'm clearing debt, I am still maintaining the same monthly payment.....part of me thinks keep the full/final money safe for rainy day especially as some are not budging and maintain as I am.. the sensible half says the aim is a Debt free day and it will be sooner if i can agree F/F....any thoughts/advice?

A settlement deal at 35% (and 50%) is going to make a huge difference to your debt-free date. If you can afford to go with them, I think you should do so. Then keep nagging the others at six-monthly intervals.

If/when the creditors are considering selling your debt, they will become more receptive to a deal.

gardnt1

Thanks for comments.... i am still trying to trawl through old threads about the wording from creditors though...seems a lot will mark credit file as partially satisfied rather than settled etc, but do say that neither themselves (DCA) or MBNA or a third party will chase for remainder...

is this enough or what should i make sure is stated in offer?

jules1973

Update on mine:

Nationwide have accepted 50% for credit card and 40% for current account.

Very will accept £2800 on £3500 debt.

The rest have refused or not replied. Money to pay f&f delayed anyway, so in few weeks I will offer 50% or 60%. I am not in a hurry