Full and final settlement help thread

sourcrates

GreenCat80 said:

Link sent me a statement dated 23rd Nov, I wrote back the day I got the letter, 2nd December, with a F&F offer. They then replied to my letter on 15th December saying they no longer manage my account, it's now with Credit Security Ltd. I have not heard a single thing from CSL, I have used their online contact form twice but had no response. I'm getting a bit frustrated as I'd really like to start negotiations but I don't have a reference number or anything. Has anyone had any experience with CSL? Or does anyone know how long it takes creditors to contact their new accounts? I don't really want to phone them...  

How long is a piece of string ?

There is no way of knowing how or even if they will respond to you, its usually a deliberate tactic to encourage you to call them, once they have you on the phone the hope is to get either all of the debt repaid, or as much of it as possible.

They don`t like losing money, accepting settlements, unless they have to, or unless they are clearing the decks for new business.

GreenCat80

sourcrates said:

How long is a piece of string ?

There is no way of knowing how or even if they will respond to you, its usually a deliberate tactic to encourage you to call them, once they have you on the phone the hope is to get either all of the debt repaid, or as much of it as possible.

They don`t like losing money, accepting settlements, unless they have to, or unless they are clearing the decks for new business.

Thanks @sourcrates, I gave in a called them this week, apparently they have been responding to my web messages via letters to my old address and phone calls to my old landline (I moved almost 6yrs ago and Link had my new details 🤷🏻‍♀️) anyway, I made an offer over the phone and CSL are passing it to Link. I had to go through my SOA on the phone but the person on the phone was very nice 

fatbelly

Make sure you get the final deal in writing and keep it safely

Finallyfacingup2

Can I ask if anyone has any recent experience of full and final settlement offers with pra- just wondering if they are accepting any offers and how low we’re these

welshspendthrift

Finallyfacingup2 said:

Can I ask if anyone has any recent experience of full and final settlement offers with pra- just wondering if they are accepting any offers and how low we’re these

I made a low offer recently but was declined they said would accept about a £1000.00 Reduction on what I owed so carried on with my monthly instalment as could not afford to raise my offer

[Deleted User]

Re PRA - they confirmed after a CCA request that my debt with them was unenforceable, I'd been on a DMP for a year or so, I told them that I would stop my payments and concentrate on paying my enforceable debts and they wrote to me a couple of weeks ago offering 20% off, I haven't made a f&f offer.

fatbelly

They want you to pay 80% of an unenforceable debt that they bought for peanuts!

DebtAngel

Hi All,

Today, I finally settled the last debt for my brother. Just sending this message to give some pointers I learned.

In November 2019 my brother came to me for help. His debts were -

1 Halifax - £12k loan
2 Natwest - £3k credit card
3 Nationwide - £5k credit card
4 Tesca Bank - £2 k credit card

My brother was paying £500 a month towards the debt but was not getting anywhere. By paying £500 he was struggling to pay bills/food etc.

I then took charge. I would like to add my brother messed up allowing this to happen. However, they were happy for him to struggle just to get their money and were charging crazy interest. First thing I did was get my brother to stick to a budget - it is amazing how many people that do not budget. First thing I recommend anyone is budget or else the problem will happen again.

I then wrote to all the debts to see if the debts were enforceable. They all provided the relevant evidence and so that route was closed. 

I then wrote to all the debts and said my brother was living behind his means and was in serious debt. I said all he could afford was £1 a month for each debt. They asked for a income/expenditure sheet. I was happy to do one. I know some say no to this but I was happy. I would like to recommend costs such a cigarettes, food etc is quite expensive. They cannot really ask you to cut down these costs as smoking is a addiction. I am sure you can think of other costs when you really think about. End result was my brother could only afford £1 a month. Also, from this date interest was stopped.

They accepted this. Somehow my brother was able to save £400 a month towards his debt (lol). £4 went to them and £396 was saved. However, they did not have to know about the £396. My second tip is never give more than nominal £1 (ensure your income/expenditure shows this). Once they accept the £1 your in a great position. If they then ever ask for a update. All you say is nothing has changed and you will continue paying £1. After initial income/expenditure never give them any other information ever. 

I also notified them my brother owed family and friends £40k in total. This way they knew debts to them were £22k but family/friends debt were £40k.

After this we give zero further information but always responded to any letter. It is essential you respond to any letter. If you do this and continue giving £1 they are extremely unlikely to take any further action. 

My brother saved £396 a month. After about 18 months Halifax settled for £5k, Natwest £1.2k and Tesco Bank £1k. I told them it was my money and I was giving the money. 

Nationwide wouldn't budget or consider anything else. So continued to give them £1. In October 2021 they said they wanted to review the account and wanted updated information. We simply responded the circumstances were the same as previously advised.
 
We stated we will continue paying £1 and will inform them when my brothers situation changed. In November they asked again and we responded exactly the same. In Janauary they phoned my brother asking to discuss the debt. I replied saying my brother was not confident doing this and wanted me to act on his behalf. We had already sent letters to all of them confirming I could act on my brothers behalf. I then phoned them and spoke. They said they would accept £4k. I simply said my brother has zero savings and would not have that in the foreseeable future. 

I said I could give £1k. They said £3.5k was their best offer. I said £2.5k but that was my final offer as I would have to clear my life savings. They accepted and now my brother is debt free.

November 2019 his life was our of control and he owed £22k. January 2022 he settled that debt for £9.7k.

However, he now budgets very well and is in control of his finances. As I said at the beginning budgeting and living within your means is most important point. Until you do this you will always struggle.

Also, be polite and professional but be smart when dealing with debts. Give them information which helps you and never give them anything else. Never, ever ignore a communication 

I know some use stepchange and pay a high amount each month. I honestly believe (if you can) to deal with it yourself. Also, give then a nominal amount each month.  

I wish you all the best. I learn loads from this forum so trying to pay it back. 

fatbelly

Exemplary post, DebtAngel.

I never rule out engaging with a creditor and providing a SoA but it has to be one that puts you in the best light for getting the result you want, as you have made clear.

sourcrates

Agree with the above, a text book performance of how to deal with a creditor, far too many debtors are far too honest, and these companies just take advantage of that.

I wholeheartedly agree that any budgetary demands, should only favour the debtor, and your approach to this has been top notch, I just wish everyone would take this attitude, well done.