Full and final settlement help thread

debtfree1979

I currently owe approx 18k to 5 creditors. Two of these creditors I owe large amounts. Natwest 8700 and Mbna 5800. These two debts have both been passed to Debt collectors. I am currently on a DMP and have been for 12 months. I recently recieved a letter referring to the debt of 8700 with Natwest and was offered 40% discount if I was to pay this off. I called the company and asked if they would be able to increase to 50% which they agreed to without hesitation. My problem is that although my parents are able to give me the money to pay off natwest, they are unable to give me any extra money. I agree that in theory I should offer this money to all creditors pro rata but I hardly think 4k would be accepted to pay off 18k worth of debt. Just looking for advise really as whether or not I should pay Natwest as they are the one I owe the most to.

Many thanks in advance.

gazfocus

Are you paying any interest on any of the debts? If you are, pay those off first.

It's always worth writing to all your debts saying you have been given x amount to be distributed between all of your detbs. Take a look at the website below that will show you how to work the calculation out (also send this calculation when you write to the debt collection agencies to show how you arrived at the figure.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

fatbelly

cyp2011 wrote: »

You must show you are treating all debts equally .Yes paying just one will cause problems . CAB always advised us to never do that ,if you have a lump sum it need to be shared between them all

This is not really necessary. It's all about negotiation.

debtfree1979

All of the debts have interest frozen at the moment. How long for, I don't know. Ideally I would like to get the Natwest debt paid off as they are the ones chasing me! I will definately give it some thought with regards to paying the 4k between all 5 creditors but very much doubt any of them would accept.

wideboy09

what do you think of this for my 6k debt with llyods tsb? i havnt made any payments for over 18 months


The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

WITHOUT PREJUDICE:

Dear Sir/Madam

Re: Card Account 1234567812345678

I write with reference to the money which you are claiming on the above loan account.



I can confirm that I can certainly not afford to payamount, I have many debts (many of which I can only make token payments of £3per month) which amount to a great deal. To make matters worse I am currentlyunemployed.

However, I would love to resolve this “ugly” issue as it causes me a great dealof stress. A relative is prepared to offer me £1250. I want to offer this sumas an ex-gratia payment, in full and final settlement of the account. The offerfrom my relative will not be available forever and my relative will not makethe payment unless the offer is accepted.

This offer is made on the clear understanding that, if accepted, neither younor any associate company will take any other action to enforce or pursue thisdebt in any way whatsoever and that I will be released for any liability. Ialso request that, if accepted, you will make an entry on a credit referenceagency file relating to the above account as "satisfied" in full. Ifthis offer cannot be considered then the obvious solution for me would be tooffer it to another creditor.

Payment can be made within 14 days of receiving your written agreement of thisoffer and method of payment.

I look forward to receiving your reply.

Yours faithfully


tell me what you think guys



Scott Oliver

wideboy09

also, i have had correspondance from many differant people. I assume it would be the manager from the collections department i would write to?

wideboy09

anyone please?

fatbelly

wideboy09 wrote: »

anyone please?

Seems OK. Hopefully you'll sort out the spacing issues.

The 'without prejudice' tag should prohibit them from using this letter as proof of acknowledgement so, if they don't accept your offer, the clock is still ticking before it becomes unenforceable.

They wouldn't normally accept an offer that low but, who knows, this might be the sort of account that they would be pleased to get what they can on.

wideboy09

well to be honest i would be very happy if i got it down to 4 grand

and its funny about the spacing, the spacing is all fine on the document but when i shrink the text on here it just looks that way, weird!

wideboy09

how long do they usually take to reply?