Full and final settlement help thread

fatbelly

gardnt1 wrote: »

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?

The partial settlement mark is OK for your credit file. It's what the Information Commissioner (ICO) says is the correct mark.

But some low-life DCAs will try to resurrect debts later by saying this was not fully settled so you do need to get and keep a covering letter that can only be interpreted one way. If you can get them to state 'full & final settlemnt', that does it. Otherwise you're looking for phrases such as 'balance written to zero, no-one will pursue any balance.'

cyp2011

fatbelly wrote: »

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.

So far all have refused but say should i wish to increase the offer to call them .Well i offered ,they refused so its £1 week . I am wondering if i should stop the £1 as after 6 years i think it would then vanish from the credit file but while we are paying they will continue to keep marking the file ,not sure what they class as 6 years from default

Jamminella

Hi all, I posted this in another thread but thought I might have more luck here, hope that's ok...

***
Hi all,
I hope someone can help with this please.
I am finally in a position to offer F&F settlements to all my creditors (not for the full amount, but around 70-80% of my debt), due to my recent house sale.
I have spoken to them all and agreed good settlements with most. I'm not too interested in driving the settlement percentage down, as I do feel that I incurred the debts so it's fair that I pay them.

I have received identical letters from Lloyds and BLS (original debt: Lloyds). However they have stated 'we are prepared to accept the partial offer of £xx in partial settlement.... your account will be closed and your credit file updated to show the account as partially satisfied"
Nowhere do they mention that they will not sell the debt or pursue me in future. I didnt' notice this, and have paid the agreed amounts. Have I been tricked??

On the same subject: I am also dealing with Moorcroft, re another Lloyds debt. I agreed a figure with them over the phone, and they tried to bully me into paying immediately with a debit card, which I refused. I insisited on receiving a letter confirming they will not pursue me for the debt in future. They sent a letter, but sent it so late that it didn't give me the 4 working days needed to make an online payment, and the letter stated "the payment must reach our offices no later than 10am on 5th august otherwise this offer will be withdrawn and further action will be taken to recover the full balance" As I know that the money would not get there in time, I haven't paid them yet, and have requested an updated letter, however they have sent me an email with more unreasonable time limits which I can't reach. I don't know what to do now, as they seem to be pushing me into making the payment by phone so it goes through straight away.

I'm due to give birth in 8 days and really wanted this sorted by then. I'm willing to pay my settlements, but need the reassurance that they WILL be 'settled'.
Also I keep reading on here that the debt must be marked Full and Final; everyone I have spoken to (5 companies in total) are only marking it partial. Is this adequate? I realise my credit history will be bad for 6 years but as I have defaulted (i was until recently on a DMP with CCCS), this would be true in any case...

Any advice please?
Sorry for the extra long post!


Thanks
Jamminella

fermi

A "partial settlement" marker on your credit files is considered acceptable in a full and final settlement, as long as the outstanding balance is zeroed and the account closed.

Sounds a bit contradictory, but it distinguishes on your report between someone who settled by paying in full and someone who settled the account by negotiated a "partial" payment.

jules1973

Just an update:

Nationwide (KPR) have settled for £2200 on £4400 credit card debt and £300 on £700 overdraft debt.

They sent acceptable letters with info needed, but will only mark credit record as a 'partial settlement'

yellowpinky

I know it probably isn't, but how much more do I need to ask for? I've asked twice for the wording Full and Final Settlement and got this -

Dear xxxx,

Further to your request to our authorised agents xxxx (DCA), please accept this letter as confirmation that upon receipt of the sum of £xxxx in settlement of the above credit card, xxxxx (original creditor) and/or xxxx (DCA) will take no further action against you.

Please note this is subject to the terms of the settlement agreed between xxxx (DCA) and yourself.

If you have any queries regarding the above please do not hesitate to contact me etc etc.


Also I don't think it is enough to stop a third party chasing me for the remainder, and there's nothing about amending my credit file, all of which I asked for.

Incidentally the part in bold refers to a lower offer amount the creditor's DCA sent me, not authorised by themselves (I found out on the phone BEFORE paying up, thank goodness!), where the letter was worded perfectly with all the terms! I dont know why the original creditor can't just send me a letter from themselves directly with acceptable wording as I've asked!

Sorry to post about this on yet another thread, I know what *should* be acceptable but I also don't want to push them too far when they seem fairly amenable, so any pointers about where to go next gratefully received.

Many thanks, YP

RedInjun

I`ve had a Final Demand today from Lewis Debt Recovery - I have a secured loan with Welcome Finance who I am in dispute with because I have a Mis stated APR and currently its with Financial Ombudsman waiting for an Adjudicator but I dont hold out a lot of hope. My dilemma is whether to offer a F ull & Final Settlement to the Lewis Debt Recovery - the debt stands at £19910 I was thinking of offering £7k. I havent paid a penny to Welcome since January 2010 because of the dispute and Ive raised telephone harassment letters so all communication has been written and all letters from me have had printed typed signatures as Im wary of their tactics and have heard the stories. Grateful if anyone on here has some constructive practical advice. The Final Demand said a response is required by 28th September - Wednesday.

onamissionEU

Dear all,

I currently have a few outstanding debts, now all credit cards and would like advice on how best to clear them at the best "price".

The total is around the 10k mark spread over 3 cards with the biggest amount being 7k (MBNA) - others are MINT and Barclaycard.

Up until 2 months ago I have been making the min payments.

I may be in a position at the end of the year to pay off what is owed though I have woken up to the fact that the banks etc are ruthless in "exploiting" people for money and I now intend to be the same. I appreciate getting into debt in the first place was my own fault but life is a business and after 10 years of being enslaved I intend to try and pay back the least amount possible - sorry to all those "morally superior people" out there.

Two other points to note are that I do not live in the UK and do not care what happens to my credit history as I do not plan on returning to the UK. The debts are unsecured.

How long do I need to wait (ie how many non payment months) before any creditior is likely to start negotiations? What is the best way to start a negotiation?

Is it best to make a token payment of 1 pound each month?

Is there anything I should be aware of?

monkeyintrouble

I managed to get RBS Mint down from 5300 to 2100 in one go, and M&S from 2300 to 1200
I do have some stubborn ones though who won't budge.
I'm currently in a battle with Cabot. They eventually agreed £900 settlement from £1500. I asked them to send me written confirmation but I've had nothing, just lots of phone calls demanding the money by today. I asked again for written agreement and they said they'd send me an e mail, but it might go to my spam box?????? Still, no letter, no email, just lots if pressure on the phone. I told them I would pay as soon as I got it on writing, ON PAPER!

SusieT

I have an MBNA and they started getting worried after 3 months with no payment. At that point they offered me a chance of a f&f of just under 25% and I suspect that if I had had the money they would have taken less. I know people on here say start the offer at around 30% but it is possible to get lower settlements if you are prepared to work at it.