Full and final settlement help thread

Stuart2013

That makes sense thank you.

Hugh2

Good morning all

This is my first post and I’m not sure if I’m posting this in the correct place.


I have debts with

Cabot Financial services (HSBC)
Moorcroft (MBNA)
Westcot (Alliance and Leicester)
Idem Capital (HSBC Mastercard).

I’ve been on a DMP since 2010 and by now, all past defaults have vanished from my credit record/file.

Recently I’ve been thinking of getting 15k of my pension to pay off all my debts and have a fresh start. The total debt is nearly 19k, so this means that I’ll have to agree on a F&F ( I think that’s the term) with my creditors.

I’ve spoken the my DMP managers and staff at Expedian and they tell me that if my creditors accept a partial settlement, it won’t appear on my credit file now, as its over 6 years since default. Is this correct?

I’ve also seen some of you discuss writing to creditors for a copy of the CA. I have no idea what a CA is and why I need one, and don’t know if I need to do this. If I do need to do this, do I send the request to the original creditors or the current creditors?

Thanks in advance for your help.

Willing2Learn

Hi Hugh2,

Given the age of the accounts, I would definitely recommend you submit a CCA request for each account, before making any offers. This will determine if your creditors have compliant paperwork. Have a good read of the article linked below for a fully detailed explanation of how this works.

Debts - why, how & when to ask for the CCA agreement


Edit: And welcome to the forum

Jambobabi

Just sent my first F&F offer out since switching to a self managed DMP.

Started with my smallest debt and offered £400 to Capital One, on a balance of £935

The account defaulted in 2015, so lets see what happens! :j

Hugh2

Thanks Willing2Learn

Is the information I got from Expedian and my DMP managers correct?

One last thing, if I may

I need to find out if the debts have been sold to the current creditors or managed by current creditors, before I send a CCA?

Thanks again

Willing2Learn

Hugh2 wrote: »

I’ve spoken the my DMP managers and staff at Expedian and they tell me that if my creditors accept a partial settlement, it won’t appear on my credit file now, as its over 6 years since default. Is this correct?

Hugh2 wrote: »

Is the information I got from Experian and my DMP managers correct?

Your DMP managers and Experian are correct. This is because a defaulted account is automatically removed from your credit files, six years from the date of default.

And just wondering, when you say "DMP Managers", is this a company who take a 'cut' from any payments you make? Or is it a free service?

Hugh2 wrote: »

I need to find out if the debts have been sold to the current creditors or managed by current creditors, before I send a CCA?

Yes. You need to make the arrangement to whichever creditor is currently managing the account.

Hugh2

Thanks WillingtoLearn

And just wondering, when you say "DMP Managers", is this a company who take a 'cut' from any payments you make? Or is it a free service? = They're a free service......(I'm paranoid)

Thanks again

H

Hugh2

One more thing regarding previous message

I'm thinking of sending a claim letter to HSBC regarding the hardship their charges caused in 2009 that led to me being unable to manage my financial affairs. Is it best to do that before I ask for CA from creditors and offer F&F or is it best doing so after?

H

PZ19

Hello all,

Been reading through this thread learning loads, so thank you all for that. A relation (yes honestly it’s not me) has 3 debts with 2 different agencies..total just under 19k. I would like to help them, but obviously can’t afford anywhere near 19k. The debts are over 10 years old, from what I understand have dropped off their credit file, and they paying minimal amounts per month, £20..so will never live long enough to pay it in full at that rate. From what I have read on here, the strategy we should pursue is to write to ask for CCA using the template and £1 crossed postal order for each. If they can’t provide that then we can either stop paying or offer very low settlement figure. Does that sound right?

fatbelly

PZ19 wrote: »

Hello all,

Been reading through this thread learning loads, so thank you all for that. A relation (yes honestly it’s not me) has 3 debts with 2 different agencies..total just under 19k. I would like to help them, but obviously can’t afford anywhere near 19k. The debts are over 10 years old, from what I understand have dropped off their credit file, and they paying minimal amounts per month, £20..so will never live long enough to pay it in full at that rate. From what I have read on here, the strategy we should pursue is to write to ask for CCA using the template and £1 crossed postal order for each. If they can’t provide that then we can either stop paying or offer very low settlement figure. Does that sound right?

With nearly 20k of debt, no capital and little surplus income, the first thing you should look at is a DRO. Obviously that won't apply if your friend is a homeowner, or isn't in England/Wales.

But if he is maybe you could help him with the £90 fee.