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Full and final settlement help thread

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  • tigergambit
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    Hi all,

    I am one year in on a DMP with PayPlan+. I have been paying £291 pcm but having just completed my review SOA find that I can only afford £164. This doesn't come as much of a surprise as we have been hand to mouth at the end of the month since Xmas. I'm assuming PayPlan will renegotiate this for me?

    I am 60 and although in a reasonable job with prospects I have had two quite severe mental health breakdowns in the last 7 years relating back to pre-school emotional & physical abuse (i.e. deep seated). On the whole I'm fairly stable but am on moderately high doses of antidepressants and have been advised that I should expect this to be a permanent  situation. The debt is placing me under added strain which obviously doesn't help this.

    At the moment we have a mortgage for 59k on a 1.52% fixed Rate until August 2026, mortgage has 9 years to run.

    PP+ are managing the following debt:
    Capital Resolve (ex Sainsbury's Bank) £2900
    Ikano Bank £630
    Moorcroft Group Plc (ex Santander) £3860
    PRA Group Ltd (ex Barclaycard) £5040
    Santander Cards £2730
    Tesco Bank £10,020
    NewDay £3,080

    Total £28,350, Est. Completion Date 1/9/2031 at current £291. Obviously this will go out to 2037 with my expected payment amount, by which time I'll be 75.

    I am concerned that I expect to retire at 67 but will then have a further 8 years of DMP to pay  - even more as my retirement income will be considerably less than my salary. Secondly my mortgage is likely to raise from its' current low rate in 2026 which will add further pressure. 

    Family offered me £12,500 to clear debts last November and I offered this to creditors via PP+ (at ~30%). MBNA accepted this (clearing £8k) but others didn't. Several have since been sold on. Family are still willing to offer the remaining £10,000. Is there any point in me asking for F&F? How will creditors perceive this with regard to my lower DMP payments? What would be the best time to offer this? Or do I just sit it out for a bit?

    Thanks in advance for any advice.

    TG
  • sourcrates
    sourcrates Posts: 29,328 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    edited 22 July 2023 at 12:54PM
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    @tigergambit

    Firstly, have you sent CCA requests to all of your creditors yet ?
    If not, then do so, find out which accounts are enforceable, and which are not.

    Unenforceable accounts can just be left until they become statute barred, especially if you are struggling to pay these debts currently.

    CCA template letter can be found here -

    Sample Letter - National Debtline | Sample letters - Information about your agreement under the Consumer Credit Act | National Debtline

    Those who can provide compliant paperwork then become the debts to concentrate on, make your settlement offers, but don`t offer too much, stay low, explain how long your DMP will take  to complete, and how old you will be by then, in future its much more likely you will have to stop paying these non priority debts as your income will decrease dramatically once retired.

    If they don`t accept, drop payments to £1 a month per creditor, then make the same offer in 6 months time, continue with this approach, and eventually they will get the message.

    Settling debts at the level you are looking for, can take a long time, its more of a marathon than a sprint, but you will get the results you are after eventually, but it takes time and tenacity to achieve this.

    Full and final settlement offer template letter can be found here -

    Sample Letter - Settlement offer | Sample letter | National Debtline | National Debtline

    Good luck.

    If the above does not bare fruit, then just continue paying the £1 a month, until it does.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • tigergambit
    tigergambit Posts: 70 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
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    Thank you Sourcrates. I haven't asked for CCAs yet but will do so today. Most of the CC debt, however, stems from around 3/4 years ago when I was really struggling financially and mentally. Prior to that I had always had a spotless record. Only longer one really is TESCO who haven't defaulted it as of yet. So I don't hold out much hope there.

    I think the strategy you are suggesting sounds good. I'm not sure how PayPlan will react to making token payments but I do feel up to managing this myself if necessary.

    Your advice is greatly appreciated.

    TG
  • tigergambit
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    Apologies for delay as I have been shipped out to relatives to calm me down a bit head wise. Back home now.

    So I have written to all creditors requesting CCAs. TESCO (which HAS been defaulted) have come back with chapter and verse from 2014 onwards. Fair enough, I will send them a F&F letter.

    Sainsbury's have responded with a one line letter "here are the documents you requested" and hard copies of account statements since June 2020. No agreement, signed or otherwise. How should I respond to this if at all?

    TG

  • fatbelly
    fatbelly Posts: 20,929 Forumite
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    I would assume Sainsburys are still looking for the agreement. It's unenforceable as things stand so you don't need to do anything
  • cheeseball73
    cheeseball73 Posts: 16 Forumite
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    edited 22 August 2023 at 12:30PM
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    Hello! Got a letter back from Link today to let me know they are unable to produce the CCA and as a result the account is unenforceable. What's the next step regarding making a F+F offer for this to get it settled (it dropped off my credit file last year so doesn't 'exist' anymore, but I want to apply for a mortgage as a FTB in the future so I can't just ignore it forever, it would still be classed as an unpaid debt when applying, I think?) - stop payments and wait? Write to them now? Is there a different template letter one should use for an unenforceable account? 

    It was the largest debt I had, so I'm feeling a lot more optimistic today about being able to finally clear things up and move on :smiley:
  • DjangoUnchained
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    if its unenforceable why would you want to make a settlement?
  • fatbelly
    fatbelly Posts: 20,929 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    edited 22 August 2023 at 9:01PM
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    Hello! Got a letter back from Link today to let me know they are unable to produce the CCA and as a result the account is unenforceable. What's the next step regarding making a F+F offer for this to get it settled (it dropped off my credit file last year so doesn't 'exist' anymore, but I want to apply for a mortgage as a FTB in the future so I can't just ignore it forever, it would still be classed as an unpaid debt when applying, I think?) - stop payments and wait? Write to them now? Is there a different template letter one should use for an unenforceable account? 

    It was the largest debt I had, so I'm feeling a lot more optimistic today about being able to finally clear things up and move on :smiley:
    You can indeed ignore it for ever - or at least until you get the cca from them.

    It's not on your credit file.

    No reason it should have any effect on a mortgage application. An unenforceable debt isn't a debt for a dro application. Wht should it be for anything else?


  • cheeseball73
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    if its unenforceable why would you want to make a settlement?
    From looking online, if I were to apply for a mortgage I would have to declare it as an outstanding debt, wouldn't I? As the debt still exists even if I don't legally have to pay it. 
  • sourcrates
    sourcrates Posts: 29,328 Ambassador
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    edited 22 August 2023 at 11:20PM
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    if its unenforceable why would you want to make a settlement?
    From looking online, if I were to apply for a mortgage I would have to declare it as an outstanding debt, wouldn't I? As the debt still exists even if I don't legally have to pay it. 
    Unenforceable debts can be ignored, as only debts that you actually pay something towards on a monthly basis should be declared on a mortgage application.

    If you list it, you will also have to list a payment for it, which will then give a false account of your finances, and may complicate the issue which you have then created.

    The lender needs to calculate your ability to afford re-payments, no reason to make it any more complicated than it need be, the debt doesn't show on your credit files, so for all intents and purposes it never existed.

    Settling it brings you no benefit whatsoever.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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