Full and final settlement help thread

kjh3222

Hi All,

I have been sending letters to try & negotiate settlements but am finding it difficult. I am currently not working but have been given support from family to try & clear.

Moorcroft won't offer more than 10% with out completing financial statements etc.

PRA have responded & offered 5%

Any advice on how to proceed?

fatbelly

kjh3222 wrote: »

Hi All,

I have been sending letters to try & negotiate settlements but am finding it difficult. I am currently not working but have been given support from family to try & clear.

Moorcroft won't offer more than 10% with out completing financial statements etc.

PRA have responded & offered 5%

Any advice on how to proceed?

There's no problem with providing a financial statement as long as it shows that you can't afford to make a substantial monthly payment. Post yours here for us to look at if you like.

http://www.stoozing.com/calculator/soa.php

If they have offered to settle at 90 and 95% then they are prepared to do a deal. How much have you offered them?

Do Moorcroft own the debt? If not, who does?

Are they loans, credit cards or what? Have you done a formal CCA request?

When did they default?

kjh3222

Hello,
Thanks for the reply. I have offered...…

PRA 31% & Moorcroft 37%. PRA is a CC & the Moorcroft account is an old Lloyds Bank Account.

I have completed a CCA request for the CC & this has been deemed enforceable. I have been sent a copy of my opening agreement.

These had until recently been part of a DMP & have been for circa 9 years. These were defaulted at around that time.

I'm not overly keen to provide a financial statement as I still have some money left from a redundancy.

fatbelly

OK, still a bit of a gap there.

Your financial statement does not have to include savings - just income and expenditure. As long as that only shows a pound or two as available I would provide that and ask them to reconsider the 31/37% offers.

Those are sensible starting points.

kjh3222

I will do that & let you know how I get on.

Thank you for your advice.

tunathe_cat

Thinking of trying to negotiate F and F . Is there any special wording that I need to take into consideration. So I dont get a bill or chased for any amount that is discounted?

I am with Step change should I ask them to help or go individually to each company?

Will reread through thread but in the meantime any advice would be considered.

thank you for reading
A

fatbelly

I would say to do it yourself, and use the National Debtline standard letter as a starting point.

General_query

Hello,

I am on a (free) Debt Management Plan and have been since February 2012.

I currently owe the following amounts to these creditors:

Cabot £1,679 (already paid back £1,191) Original Creditor: NRAM
Intrum £1,083 (already paid back £591) Original Creditor: OPUS CARD SERVICES
PRA Group £6,248 (already paid back £3,100) Original Creditor: MBNA Limited
PRA Group £2,131 (already paid back £1,115) Original Creditor: BARCLAYCARD
Westcot £4,174 (already paid back £1,977) Original Creditor: RBS MINT CLASSIC CARDS
Westcot £2,688 (already paid back £1,246) Original Creditor: Opening New Account

Total paid back to date = £9,359.


All of these debts are over 6 years old and none are showing on any of the 3 (free) credit reference agency’s files I use.

I was paying £100 a month, and after submitting a new mandatory annual review, this has now dropped slightly to £95 a month payment to my creditors.

My estimated debt free date is a crazy 2035 and still owe just under £18,000 now.

I have been given £9,000 by a family member with the sole purpose of clearing my debts once and for all via a full and final settlement offer.

However, none of my creditors have accepted this 50% offer.

They have responded with the below counter offers and NONE seem to have taken into account the fact that I have already paid them back the above amounts since being on my DMP.


Cabot £1,679 – offered £840, they want £1,193 = 71% wanted.
Intrum £1,083 – offered £542. (*See below)
PRA Group £6,248 – offered £3,126, they want £4,061 = 65% wanted.
PRA Group £2,131 – offered £1,066, they want £1,385 = 65% wanted.
Westcot £4,174 – offered £2,088, they want £3,130 = 75% wanted.
Westcot £2,668 – offered £1,335, they want £2,001 = 75% wanted.

My Debt Management company have told me “they’ve had counter offers from Wescot at 75%. I’ve spoken to Wescot today and these figures are from them, not the legal owners of the debt. I’ve requested they refer our offer back to the legal owners for consideration. They’ve confirmed they’ll do that today”, but that was 7 days ago now.

*I have been told that Intrum haven’t replied and have been uncontactable (also 7 days now).

I explained that the family member was doing this to help me out and clear my debts with this money purely to be used for a one off “full and final settlement offer”, and there would be no higher amount available, yet my creditors now want £11,700 (excluding Intrum) instead of the £9,000 which I (they) simply do not have. That’s an extra ridiculous amount of £2,700.

Any help / advice / suggestions ASAP please?

I owed money to Barclaycard, Egg, Royal Bank of Scotland, Northern Rock and MBNA off the top of my head and all these debts have been sold on to the above companies.


Thank you.

[Deleted User]

General_query wrote: »

Hello,

I am on a (free) Debt Management Plan and have been since February 2012.

I currently owe the following amounts to these creditors:

Cabot £1,679 (already paid back £1,191) Original Creditor: NRAM
Intrum £1,083 (already paid back £591) Original Creditor: OPUS CARD SERVICES
PRA Group £6,248 (already paid back £3,100) Original Creditor: MBNA Limited
PRA Group £2,131 (already paid back £1,115) Original Creditor: BARCLAYCARD
Westcot £4,174 (already paid back £1,977) Original Creditor: RBS MINT CLASSIC CARDS
Westcot £2,688 (already paid back £1,246) Original Creditor: Opening New Account

Total paid back to date = £9,359.


All of these debts are over 6 years old and none are showing on any of the 3 (free) credit reference agency’s files I use.

I was paying £100 a month, and after submitting a new mandatory annual review, this has now dropped slightly to £95 a month payment to my creditors.

My estimated debt free date is a crazy 2035 and still owe just under £18,000 now.

I have been given £9,000 by a family member with the sole purpose of clearing my debts once and for all via a full and final settlement offer.

However, none of my creditors have accepted this 50% offer.

They have responded with the below counter offers and NONE seem to have taken into account the fact that I have already paid them back the above amounts since being on my DMP.


Cabot £1,679 – offered £840, they want £1,193 = 71% wanted.
Intrum £1,083 – offered £542. (*See below)
PRA Group £6,248 – offered £3,126, they want £4,061 = 65% wanted.
PRA Group £2,131 – offered £1,066, they want £1,385 = 65% wanted.
Westcot £4,174 – offered £2,088, they want £3,130 = 75% wanted.
Westcot £2,668 – offered £1,335, they want £2,001 = 75% wanted.

My Debt Management company have told me “they’ve had counter offers from Wescot at 75%. I’ve spoken to Wescot today and these figures are from them, not the legal owners of the debt. I’ve requested they refer our offer back to the legal owners for consideration. They’ve confirmed they’ll do that today”, but that was 7 days ago now.

*I have been told that Intrum haven’t replied and have been uncontactable (also 7 days now).

I explained that the family member was doing this to help me out and clear my debts with this money purely to be used for a one off “full and final settlement offer”, and there would be no higher amount available, yet my creditors now want £11,700 (excluding Intrum) instead of the £9,000 which I (they) simply do not have. That’s an extra ridiculous amount of £2,700.

Any help / advice / suggestions ASAP please?

I owed money to Barclaycard, Egg, Royal Bank of Scotland, Northern Rock and MBNA off the top of my head and all these debts have been sold on to the above companies.


Thank you.

Those settlement offers from your creditors seen exceptionally high and unreasonable given your circumstances and the fact that your DMP, at the current rate of payments, will last so long.

I've no experience of negotiating F&Fs through my DMP. I ended my Stepchange relationship (after 4 very happy and successful debt-paying years) to go self-managed so I could negotiate my own F&F deals with creditors. I started at around 30% payable, after advice on here to go in low, and all settled at well under 40%. Given your circumstances I would have expected your creditors to have snatched your hand off at 50%.


As these my be old debts have you sent off CCA requests to all your creditors to make sure they are actually enforceable? If not you are in a much better position to either not pay any more off them or negotiate really low, even 10% payable amounts as some people on here have done.

Good Luck:beer:

fatbelly

General_query wrote: »

Hello,

I am on a (free) Debt Management Plan and have been since February 2012.

I currently owe the following amounts to these creditors:

Cabot £1,679 (already paid back £1,191) Original Creditor: NRAM
Intrum £1,083 (already paid back £591) Original Creditor: OPUS CARD SERVICES
PRA Group £6,248 (already paid back £3,100) Original Creditor: MBNA Limited
PRA Group £2,131 (already paid back £1,115) Original Creditor: BARCLAYCARD
Westcot £4,174 (already paid back £1,977) Original Creditor: RBS MINT CLASSIC CARDS
Westcot £2,688 (already paid back £1,246) Original Creditor: Opening New Account

Total paid back to date = £9,359.


All of these debts are over 6 years old and none are showing on any of the 3 (free) credit reference agency’s files I use.

I was paying £100 a month, and after submitting a new mandatory annual review, this has now dropped slightly to £95 a month payment to my creditors.

My estimated debt free date is a crazy 2035 and still owe just under £18,000 now.

I have been given £9,000 by a family member with the sole purpose of clearing my debts once and for all via a full and final settlement offer.

However, none of my creditors have accepted this 50% offer.

They have responded with the below counter offers and NONE seem to have taken into account the fact that I have already paid them back the above amounts since being on my DMP.


Cabot £1,679 – offered £840, they want £1,193 = 71% wanted.
Intrum £1,083 – offered £542. (*See below)
PRA Group £6,248 – offered £3,126, they want £4,061 = 65% wanted.
PRA Group £2,131 – offered £1,066, they want £1,385 = 65% wanted.
Westcot £4,174 – offered £2,088, they want £3,130 = 75% wanted.
Westcot £2,668 – offered £1,335, they want £2,001 = 75% wanted.

My Debt Management company have told me “they’ve had counter offers from Wescot at 75%. I’ve spoken to Wescot today and these figures are from them, not the legal owners of the debt. I’ve requested they refer our offer back to the legal owners for consideration. They’ve confirmed they’ll do that today”, but that was 7 days ago now.

*I have been told that Intrum haven’t replied and have been uncontactable (also 7 days now).

I explained that the family member was doing this to help me out and clear my debts with this money purely to be used for a one off “full and final settlement offer”, and there would be no higher amount available, yet my creditors now want £11,700 (excluding Intrum) instead of the £9,000 which I (they) simply do not have. That’s an extra ridiculous amount of £2,700.

Any help / advice / suggestions ASAP please?

I owed money to Barclaycard, Egg, Royal Bank of Scotland, Northern Rock and MBNA off the top of my head and all these debts have been sold on to the above companies.


Thank you.

I agree with scrimpess. I think the mistakes you have made are

1. Not taking control of the process but leaving it to a third party who have nothing to gain from success.

2. Starting with your final offer, leaving no room for negotiation.

3. Not checking enforceability.

From where you are now, CCA them and see if you can kill one of them off.