Full and final settlement help thread

Bettingmad

rainydayfund wrote: »

Hi all, just a quick update on my (or should I say OH's) situation. Got a letter from Mortimer Clarke offering 30% reduction (if paid within 3 weeks), so down to about £3,500. Originally offered £1100 and no way can we pay what they want. I think the debt before they whacked loads of fees on it was about £3k.

Thought I would sit on it for a while and then reply saying can't afford that and offer £15pcm (it will take about 25 years to clear I've calculated). Or should I up the offer a tad? Can go up a bit but not huge amount as don't want to use all my savings. OH has no income and no assets so I would be doing this out of the goodness of my heart and to promote world peace :rotfl:.

Any thoughts anyone? What would you do?

Oh and thanks to all the people who contribute their knowledge to this site, without you I would have been positively terrified :T.

TBH I would just write back tahnking them for considering a settelement however you are not able to afford the fugures provided so will continue with making a monthly payment. It's all mind games. If no counter off continue with the kow payments for 6mths and put another offer in. You certainly don't want to be paying anymore than 50%.
If you go straight in with a counter offer now they will know that you are playing the game and they will likely hold out for more at this stage.

stupot_99

Hey i was looking for advice, i sent away an F&F to welcome finance the debt was for about £4500 and i offered £450 but not heard anything back yet,how long should i give it before resending it and i know 10% is cheeky but most of the debt is intrest so i thought id try. I sent it on the 5th of Jan

Bettingmad

stupot_99 wrote: »

Hey i was looking for advice, i sent away an F&F to welcome finance the debt was for about £4500 and i offered £450 but not heard anything back yet,how long should i give it before resending it and i know 10% is cheeky but most of the debt is intrest so i thought id try. I sent it on the 5th of Jan

I would safely say that you have no chance of getting an offer accepted of 10%. If you can get an offer of 25% accepted then you have done fantastically well.

The type of settlement depends on a number of factors i.e has the debt been sold on from the original creditor, has the debt been defaulted, how old is the debt, what are the current levels of payment compared to the size of the debt? all the previous factors will determine how much of a reduction you will get.

fatbelly

stupot_99 wrote: »

Hey i was looking for advice, i sent away an F&F to welcome finance the debt was for about £4500 and i offered £450 but not heard anything back yet,how long should i give it before resending it and i know 10% is cheeky but most of the debt is intrest so i thought id try. I sent it on the 5th of Jan

Hi Stupot

From your other thread this is statute barred and you're in scotland. So the debt is extinguished. They probably know this. Why are you offering them anything at all?

stupot_99

fatbelly wrote: »

Hi Stupot

From your other thread this is statute barred and you're in scotland. So the debt is extinguished. They probably know this. Why are you offering them anything at all?

I was thinking that if i can get the default marked as satisfied that it might help my credit rating, im working towards a mortgage, am i wrong in my thinking. Should i just leave it? thanks for the input guys.

Bettingmad

stupot_99 wrote: »

I was thinking that if i can get the default marked as satisfied that it might help my credit rating, im working towards a mortgage, am i wrong in my thinking. Should i just leave it? thanks for the input guys.

Won't make a jot of difference I'm afraid, the default is listed and will remain for 6yrs until it drops off..The fact that it is fully satisfied or partially satisfied matters not with a default.

stupot_99

Bettingmad wrote: »

Won't make a jot of difference I'm afraid, the default is listed and will remain for 6yrs until it drops off..The fact that it is fully satisfied or partially satisfied matters not with a default.

then what is the point of marking them settled or satisfied, in that case they can whistle for their 10% and should have let me claim the PPI instead of messing me about, that'll teach them. On the PPI note i take it they would just put that to the outstanding balance as opposed to giving it to me if i was to make a claim.

rainydayfund

Bettingmad wrote: »

TBH I would just write back tahnking them for considering a settelement however you are not able to afford the fugures provided so will continue with making a monthly payment. It's all mind games. If no counter off continue with the kow payments for 6mths and put another offer in. You certainly don't want to be paying anymore than 50%.
If you go straight in with a counter offer now they will know that you are playing the game and they will likely hold out for more at this stage.

Many thanks Bettingmad, I'll leave it a few days then drop them a line and offer £15pcm and then try again in a few months! The debt has been sold on twice as far as I can make out (if only HSBC had continued to accept the payments it would have been so much less hassle!) and minimal payments have been paid to reduce so at £15pcm it will be mighty long before it is cleared.

zico82

Hi,


what would you do if you were getting letters from the usual agencies like metropolitan collection services and apex etc... supposing you were circa £20k in debt across 4 cards none paid for around 7 months.

Additional info in this scenario:

student - only source of 'income' student loans
no paid employment
rent room in house
no car etc (only asset of value is a 2 year old laptop which is needed)

would you advise going in with Really low f&f offers??

thanks

fatbelly

zico82 wrote: »

Hi,


what would you do if you were getting letters from the usual agencies like metropolitan collection services and apex etc... supposing you were circa £20k in debt across 4 cards none paid for around 7 months.

Additional info in this scenario:

student - only source of 'income' student loans
no paid employment
rent room in house
no car etc (only asset of value is a 2 year old laptop which is needed)

would you advise going in with Really low f&f offers??

thanks

No, because there are no assets/savings with which to make F&F offers. I'd be looking at bankruptcy now, or an ignore/token offer strategy(probably ignore) and review the situation in 12 months.