Full and final settlement help thread

ZeldaG_2

Great, gonna push the button. Thank you!

aMcP0104

Hi, I received an offer from 2 of my creditors to clear the balance I have with them (Cabot, originally a fluid credit card and Wescot, originally a NatWest CC) before this, I didnt even know this sort of thing could be done! I'd resigned myself to the 17 years it was going to take my DMP through StepChange to pay off my 17k of debt.

After finding this thread and doing some research, I spoke to my mum and she has offered to give me the money as long as it's a "good enough offer".
Cabot offered a 40% settlement, which I've decided to take. Wescot offered 60% which I have countered and asked for 40%.

I then approached my other 3 creditors yesterday, 2 have said they won't budge under 75% one is PRA, which was originally a Barclays CC and is my biggest debt at £9415, so have offered a settlement of no lower than £7062, which I worked out to be around 75%. They said the system wont accept any lower? Is this something I should keep fighting?
Moorcroft also offered 75% on my natwest overdraft, apparently NatWest guidelines are no lower than 75%, but I've already had an offer lower than that on my NatWest CC with Wescot? Is it true that the guidelines would be different? Or is it maybe that one has been sold and the other is still with Natwest and just being delt with through moorcroft?

I then have a HSBC overdraft still with HSBC, they instantly offered 50% over the phone and I've asked for 40%.

My question is really - should I keep fighting for lower on PRA and Moorcroft? Especially PRA as I was aiming for 40% on that, which I know is a bit cheeky. As it's a CC, I was thinking of sending them a CCA, is that worth it?

fatbelly

Definitely send a CCA on the old credit card.

You shouldn't take much notice of their reasoning. It's just the bottom line that counts. You'll settle at 40% (if they have a valid cca) but if they won't go for that then we continue with a 17-year payment plan.

Although I post a lot on this thread I'm not a big fan of F&F deals if it involves using other people's money and insolvency would be a better option.

It's worth looking at DRO and bankruptcy to check that they would not be better for you and cheaper for your mum.

GreenCat80

How long do the dca’s take to respond to a f&f offer? I’ve only been waiting a week and I’m already feeling frustrated 😬

fatbelly

It can be a drawn-out process, and everything slows down at Christmas. It's just a case of being patient.

GreenCat80

I thought one of my debts was with moorcroft, but they’ve just written back to say it’s gone back to the previous creditor and they’ve passed my correspondence onto them. It doesn’t say who the previous creditor was 😬
Will my offer still stand once it’s passed on or will I need to write another letter once I’ve figured out who I’d need to write to? 

fatbelly

It sounds like they are passing your offer on.

Moorcroft usually act as collectors so the account has probably gone back to the owner - it could be the original creditor

GreenCat80

And I’ve had a letter from Cabot today rejecting my 35% offer of £2160 but saying they’d accept £4320 ( debt is £6172) I was really hoping to clear all 3 debts with £4k, otherwise I’ll just have to keep paying token payments forever. Is there a template letter for a counter offer? Is there any point in writing back and saying my offer of £2160 still stands but I can’t increase my offer or my token payments? 

fatbelly

GreenCat80 said:

And I’ve had a letter from Cabot today rejecting my 35% offer of £2160 but saying they’d accept £4320 ( debt is £6172) I was really hoping to clear all 3 debts with £4k, otherwise I’ll just have to keep paying token payments forever. Is there a template letter for a counter offer? Is there any point in writing back and saying my offer of £2160 still stands but I can’t increase my offer or my token payments? 

You've suggested 35%, they say 70%. If you can go to 50% you might be in with a chance.

If you genuinely can't increase your offer, I'd leave it for now and try again in 6 months. 

GreenCat80

fatbelly said

You've suggested 35%, they say 70%. If you can go to 50% you might be in with a chance.

If you genuinely can't increase your offer, I'd leave it for now and try again in 6 months. 

Thanks fatbelly. There is genuinely nothing else in the pot to offer them. I’m gutted because I need to pay off these 3 debts so I can then get a mortgage to buy my ex out so he leaves 😭

I think I’m going to fill in the SOA they sent to show there is nothing extra for repayments and tell them I will keep the 35% offer on the table for 30 days. I’ve been paying the £1 per month for 12 years, I thought they’d be happier to be rid of me 😳