Full and final settlement help thread

Vicki17

Hiya, I recently posted about offering a f&f settlement to our defaulted creditor, which I did nearly a month ago, but haven't heard anything from them? Does it normally takes this long for them to reply? Husband did call to check they had received it, but the guy said he couldn't see our account as someone else was dealing with it? (does that sound a bit suspicious??). We then checked his credit reports and the default has completely disappeared off both experian and clearscore (it was on both before) . Now a bit worried they have already sold it to a debt collector? Do I need wait for a letter and then make another offer direct to the debt collection company? Does this make an offer more or less likely to be accepted? Or could it be gone forever??!! 🤞🤞😬😬

runforlife

Vicki, if it’s a credit card Have you requested a CCA from them ? They should provide that if they have it and a current statement of the account ie what the balance is. Try that for starters. I’m sure if they have sold it on they need to tell you to who it’s gone to. 

Vicki17

Yep it's a credit card. I'm not sure if I can ask for a cca, as I've already said I acknowledge the debt in my settlement offer! 😬😬 We know the balance etc, and it's quite a recent account (2016). Will get husband to ring again and ask where its gone. Was a bit hesitant, as didn't really want to notify them if they had 'accidently' removed the default! 🤞

fatbelly

You can  always request a copy of your agreement on a Consumer Credit Act debt, which a credit card is. It's your right under s76-79 of the act. As long as you do it properly, the account is unenforceable until they comply. 

So it is a useful tactic for you.

https://nationaldebtline.org/fact-sheet-library/credit-agreements-getting-information-ew/

Vicki17

Ah OK, thank you, will send off a request. Do I send it to the original company (creation), or, if they have sold it on, to the debt company? Thanks 

fatbelly

You've not been informed that they have sold it to a particular debt buyer. I'd send it to Creation.

poppasmurf_2

Vicki17 said:

Ah OK, thank you, will send off a request. Do I send it to the original company (creation), or, if they have sold it on, to the debt company? Thanks 

If sold on to a DCA yes, send it there.

poppasmurf_2

Vicki17 said:

Yep it's a credit card. I'm not sure if I can ask for a cca, as I've already said I acknowledge the debt in my settlement offer! 😬😬 We know the balance etc, and it's quite a recent account (2016). Will get husband to ring again and ask where its gone. Was a bit hesitant, as didn't really want to notify them if they had 'accidently' removed the default! 🤞

The DCA needs the CCA to enforce the repayment. If they do not produce a CCA, the DCA cannot hassle you for the debt, they can only send you a letter every six months, so stop paying them, let the debt expire, thats 6 years until it is statute barred.

IF you get the CCA then you can possibly negotiate a better percentage for the F&FS. DCA or Banks will do an F&FS on a DEFAULTED account. Try and get near to 30% for the F&FS.
It is harder, but you can get an F&FS on a none defaulted account, but the percentage they want may well be a lot higher. 

techno21

Hello all,

My Mum defaulted on her debts in 2013 and she has been paying back through a DMP set up with Stepchange for the past 8 years. My Dad has lost income due to the Covid so we want to clear the debts whilst we still can.

We wrote to the debtors asking for a CCA 3 weeks ago. Capital One have responded with the CCA. We have heard back from 2 DCAs saying they haven't got the CCA but are looking for it. We are awaiting a response from the other DCAs.

She has about £9,000 outstanding. £2,450 is with the original creditor (Capital One) whilst the remaining is with debt companies including Hoist (£700), Idem (£500) and Link Financial (around £6k).

She has been paying about £400 a month via Stepchange but has brought this down recently to £150 due to my Dad's loss of income.

I have advised my Mum to stop paying into Stepchange. Our intention is to email Capital One to offer a F&F repayment of 15%  using the National Debt Helpline template. I plan to make a nominal repayment offer to the DCAs (5%) and, if refused, stop paying until they produce a CCA.

Does this seem to be the correct approach?

fatbelly

The approach seems ok, and it is best to start low.

They are unlikely to accept 15% but it is a start to your negotiations.