Full and final settlement help thread

Matt38_2

Hi i would offer them say 8k for a first attempt, i just settled a Barclay loan and overdraft for about 40% the outstanding debt was £5200 and i cleared it paying £1900 so happy days. Basically i just wrote to them asking them to consider what i was offering. I was on a DMP so it was better for them to accept what i was offering rather than getting pennies each month forever. You won't know to you try and you have nothing to lose asking just say your being loaned the mony and the offer isnt there for ever you can get template letters from national debt web page good luck

essexgirl1976

I have contacted our creditors over the past week (all 11 of them) offering full and final settlements on our accounts due to a redundancy payment. So far we have received 3 letters stating no and today I received a phone call from DLC stating no and wanting to do a financial statement over the phone as they had not done one for over 2 years instead of every 6 months. They stated that they wanted 80% of the debt (5452.63 total) to be paid or the payments to be increased from £8 per month to £156 per month or they would have the debt secured against my property. I explained that the redundancy payment was fixed, we are on dmp with all creditors and therefore were offering equal share as full and final settlement ie 30%.
After being on a dmp for nearly 3 years can they secure the debt against my house? I feel that i am being penalised for making them an offer. Can anyone help/give advice

Ed_Gilmore

Hi Essex Girl

I am new to the forum and thought I respond to your posting.

If I understand correctly, all of your debts are unsecured, which means the creditor can not force you to secure those debts against your property, especially if in the long run it would be detrimental to you financially at that paying more interest.

I would suggest to seek advise from the CAB, in my opinion I think the creditors are just trying their luck to get the most out of you, F&F settlements can vary but if you started at 30%, see what they are prepared to accept and negiotate from there, maybe even get someone on your behalf to do this.

Hope you get it sorted and good luck.

Ed

fatbelly

essexgirl1976 wrote: »

I have contacted our creditors over the past week (all 11 of them) offering full and final settlements on our accounts due to a redundancy payment. So far we have received 3 letters stating no and today I received a phone call from DLC stating no and wanting to do a financial statement over the phone as they had not done one for over 2 years instead of every 6 months. They stated that they wanted 80% of the debt (5452.63 total) to be paid or the payments to be increased from £8 per month to £156 per month or they would have the debt secured against my property. I explained that the redundancy payment was fixed, we are on dmp with all creditors and therefore were offering equal share as full and final settlement ie 30%.
After being on a dmp for nearly 3 years can they secure the debt against my house? I feel that i am being penalised for making them an offer. Can anyone help/give advice

They can go for a ccj and a charging order (if you own your own house). It doesn't mean they will. You would still get the opportunity to present a payment plan to the court.

k2warlock

Negotiated a payment of 25% through KPR for full and final settlement of £33000 debt . Aiimng for the same with moorcroft and MBNA. Good luck people. Start at 10% and work your way up

Moneymash

fatbelly wrote: »

At this point they think you will repay them in full over the next 20 months - they will be more receptive after a few months of token offers. You can send the offer to FTC and see what they come back with. I wonder if Capquest now own the debt as they are a debt buyer. Best of luck and you may want to start your own thread

Moneymash update
Thanks for the advice fatbelly. I didn't send the Full and Final letter off in the end. I have been working myself stupid working 60 and 72 hour weeks in preparation of the overtime drying up. There are still no new starters yet though, they are due to start in July and I have also had a promotion which will boost my hourly pay. So I'll keep paying the £74 monthly as long as I can afford it.

kirstle99

Hi All

I'm in the process of trying to negotiate with creditors f&f settlements. Basically we owe about 13.5k and a family member has offered us 6.5k to barter with. So as this is just shy of 50% offers we just sent them off using all of the money we had available up. Now, the 2 that had been passed on have actually settled. But most of them are still with original creditors & i've had 2 rejection letters back already.
The question is, what do I do now? I can't offer them any more money obviously so I was unsure whether to just settle some off at the fulll price & just keep paying on the dmp with the ones that refused the offers?

KeepFighting_2

KeepFighting wrote: »

It is a long story but I owed £102,000 on bank loans and cards and an overdraft. I have been on a DMP since April 09 paying £500 a month. I have managed to get the balance down to £78,000 which included reclaiming some PPI back. I have possibly got access to £30,000 which by my calculations would mean that I could offer this as a Full and Final and the creditors would have got approximatley 54% back. When I asked my DMP organisers qbout the cost they quote 20% of what I saved which works out about £10,000!
Do you think that I could do this on my own without using them?

Thought I would keep you posted have succesfully got all of my creditors excecpt Mint Credit Cards to accept Full and Final Settlements of between 40 and 50% of the outstanding. As for Mint they asked for 90% so I am going to let them wait.
But after my experience I would say do not get dispondent and certainly give it a go but remeber do not give them all oyur funds immeadiatley to them it is all a negotiation and they will usually accept less than their original proposal they are out for all they can get so keep some back.

Flattery26

Hi all, glad to see some of you havin success!
Could do with some advice but would also like to helP if I can.
bit about my situ...

Just as the housing market started to go pop we were in the middle of a refurb project and I got made redundant. One way or another myself and my partner found ourselves in approx 50/60k in unsecured debtss and with the help of the fantastic cccs managed to stay afloat for a while. There was no way of making large payments on the loans or cc's so they advised us and helped us to arrange to pay £1 per month to each creditor which included NR m&s MBNA Lloyds tsb Amongst others...

This was about four years ago. Our situations haven't changed much, we never got back to earning good money, have had two amazing kids and with a bit of hair pulling form filling and the odd telephone call have managed to get this far.
So my advice wud be don't worry, yes we'd like to get things sorted but I hope most people aren't in quite the mess we've managed to get ourselves in. We've just kept Regular contact with creditors - answering the phone when they call basically as long as u do that theyll accept wot u say and agree to not pester as long as you have the odd conversation.

We spoke to the cccs right at the start and they were very helpful and supportive, they're non profit and a charity. We talked about Iva's but our figures wouldnt work - even tho their charges were next to next to nothing compared to the evil sharks you see on tv!
So BR is probably the best way out as weve surrendered the house which has added 50k to the debts, but we do intend on making an offer to f+f settle. Any iva we cudve entered wudve given each creditor 10p In the £ and the cccs advised that due to our circumstances it may b accepted due to the amount and amount of time. The cccs said we cud try f+f or one off iva.
Wot I'd like to find out before undo this is, has anyone come across a similar problem is so how best to approach as I'll only get one shot or it's BR!
And comments advice or ideas wud b appreciated.

Thanks

Flattery26

Sorry, didn't mean for the post to be so long.