Full and final settlement help thread

zenshi

JAS2015 said:

Maybe the approach of the end of the financial year has something to do with it?

My thoughts this morning.....have just offered Cabot a 25% settlement on a CC they bought last year just after Covid struck and they’ve had nothing from me at all. Fingers crossed

fatbelly

JAS2015 said:

I had similar success with Next this week. They accepted £900 on an old debt of £2500 and I already have written confirmation that the remaining balance wont be chased or sold on. Maybe the approach of the end of the financial year has something to do with it?

Plus a difficult financial position for a lot of companies - now could be a good time to try.

Rud0lf

Wesc0t have offered me a 20% reduction on a debt without me asking presumably because the end of the financial year is approaching. I'd have £4100 to pay over 6 months it's just about doable but would be tight, has anyone had an offer made without requesting it and then managed to negotiate a better deal?

Relliott6879

Just started a new thread, but I think my question may be more appropriate in here.

I'm a year into a DMP with PayPlan. Towards the end of this year, I will receive a retirement lump sum from work which will be enough to clear the balance. Am I likely to get a better cumulative settlement figure by approaching each creditor myself and then simply informing PayPlan that I have cleared all my debts and cancel my plan with them, or should I front up to PayPlan about the lump sum and allow them to negotiate on my behalf? The total remaining debt at that point will be just over £20k.

I know the easier option would be to let PayPlan deal, but part of me can't help thinking that they aren't a charity and may have a vested interest in my settling through them, taking a percentage of the settlement figure. It is also possible that breaking my 'contract' with them would (further) adversely affect my credit rating? I'll be using everything left to fund a deposit on my first house and am well aware that, being newly debt free at that point, my poor credit rating will mean I pay a higher interest rate on the mortgage.

bell2020

bell2020 said:

Just sharing my success this morning to give hope to others.

We have been on a dmp with stepchange for over 5 years. Current balance is £10,394!

I sent full and final settlement offers to all of the creditors (7) yesterday. Sum of 5k to pay everything off. Can do for 6k if needed.

I offered £1435.58 to NEXT. The debt is with their in house collections team, it wasn't sold on. They accepted this morning!! The balance was £2984.47. Really chuffed, they were the ones I least expected to accept 😊

Just an update. 

Wescot replied asking for information regarding our financial details and balances of the other debts.

PRA group refused offers on both balances and said there are no settlement offers available on the account. Gutted as one of them was our biggest debt 😢 

NCO came back and refused our offer of £258 on a balance of £536.78. But they offered £348.91 to settle the account 

fatbelly

Just an update. 

Wescot replied asking for information regarding our financial details and balances of the other debts.

PRA group refused offers on both balances and said there are no settlement offers available on the account. Gutted as one of them was our biggest debt 😢 

NCO came back and refused our offer of £258 on a balance of £536.78. But they offered £348.91 to settle the account 

Well done

JAS2015

bell2020 said:

bell2020 said:

Just sharing my success this morning to give hope to others.

We have been on a dmp with stepchange for over 5 years. Current balance is £10,394!

I sent full and final settlement offers to all of the creditors (7) yesterday. Sum of 5k to pay everything off. Can do for 6k if needed.

I offered £1435.58 to NEXT. The debt is with their in house collections team, it wasn't sold on. They accepted this morning!! The balance was £2984.47. Really chuffed, they were the ones I least expected to accept 😊

Just an update. 

Wescot replied asking for information regarding our financial details and balances of the other debts.

PRA group refused offers on both balances and said there are no settlement offers available on the account. Gutted as one of them was our biggest debt 😢 

NCO came back and refused our offer of £258 on a balance of £536.78. But they offered £348.91 to settle the account 

Congratulations on your settlement with NCO! You are chipping away at them.

I am waiting for a cca from PRA. They are renowned for being tricky

katiepoppycat

Hi, I am working with my Dad to sort out his finances.  Pretty much all of them have have now admitted debts are unenforceable.  I'm a little confused about the difference between unenforceable and statute barred.  They seem to be pulling in a bit and bringing them back inhouse - so Cabot have taken them back from Wescot etc.  Is this a good sign that they are prepared to negotiate?  We made initial 10% offers but none have been accepted so far.  He wants to sort these out now because he doesn't want me to have to deal with it as part of his estate - we have no reason to think that's in the near future!  What would happen to an enforceable debt after death?  Thanks for reading.

fatbelly

katiepoppycat said:

Hi, I am working with my Dad to sort out his finances.  Pretty much all of them have have now admitted debts are unenforceable.  I'm a little confused about the difference between unenforceable and statute barred.  They seem to be pulling in a bit and bringing them back inhouse - so Cabot have taken them back from Wescot etc.  Is this a good sign that they are prepared to negotiate?  We made initial 10% offers but none have been accepted so far.  He wants to sort these out now because he doesn't want me to have to deal with it as part of his estate - we have no reason to think that's in the near future!  What would happen to an enforceable debt after death?  Thanks for reading.

Sounds like you're doing some excellent work there.

There are two main routes to unenforceability:

A debt that has not been acknowledged by payment or in writing, by debtor or their agent, for a period of six years, becomes statute barred under the Limitation Act. That is, the debtor has a full defence to any court claim.

For Consumer Credit Act Debts like loans, credit cards and catalogues, the debtor has the right to request a copy of the original agreement under s77-79 of that Act. One of the side effects of that is that the debt stays unenforceable until the creditor complies with the request. Any court claim can be 'stayed' until the Act is complied with. It's best viewed as temporary unenforceability, though it can become clear that the request will never be complied with.

Of course eventually the second scenario becomes unenforceable under the first one!

It is a good sign that debts are being recalled from collectors.

Enforceable debts are paid from the deceased's estate assuming there is enough to do that after the funeral costs are paid. Where there  is only a partial sum available the payment will be so many pence in the pound

katiepoppycat

fatbelly said:

katiepoppycat said:

Hi, I am working with my Dad to sort out his finances.  Pretty much all of them have have now admitted debts are unenforceable.  I'm a little confused about the difference between unenforceable and statute barred.  They seem to be pulling in a bit and bringing them back inhouse - so Cabot have taken them back from Wescot etc.  Is this a good sign that they are prepared to negotiate?  We made initial 10% offers but none have been accepted so far.  He wants to sort these out now because he doesn't want me to have to deal with it as part of his estate - we have no reason to think that's in the near future!  What would happen to an enforceable debt after death?  Thanks for reading.

Sounds like you're doing some excellent work there.

There are two main routes to unenforceability:

A debt that has not been acknowledged by payment or in writing, by debtor or their agent, for a period of six years, becomes statute barred under the Limitation Act. That is, the debtor has a full defence to any court claim.

For Consumer Credit Act Debts like loans, credit cards and catalogues, the debtor has the right to request a copy of the original agreement under s77-79 of that Act. One of the side effects of that is that the debt stays unenforceable until the creditor complies with the request. Any court claim can be 'stayed' until the Act is complied with. It's best viewed as temporary unenforceability, though it can become clear that the request will never be complied with.

Of course eventually the second scenario becomes unenforceable under the first one!

It is a good sign that debts are being recalled from collectors.

Enforceable debts are paid from the deceased's estate assuming there is enough to do that after the funeral costs are paid. Where there  is only a partial sum available the payment will be so many pence in the pound

Thanks for this!  What about UNenforceable debts after death?  (which is the question I meant to ask but didn't proof my post well enough)