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What did you say in your letter? Did you explain where the money was coming from and say why it was a good deal for them? I want to make full and finals when I sell my house but if they know I have a business which, ok, got me in this mess, but is actually picking up and looking ok for the future they might think they would be better to hang on and wait.
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"Everyone is a genius. But if you judge a fish on its ability to climb a tree, it will live its whole life believing that it is stupid" - Albert Einstein
For anyone who wants it, here is the standard f&f letter I found elsewhere on the web. I've adapted it a little to mention relatives, but have not sent it out yet. It's important to put "without prejudice" at the top of the letter but probably not worth sending it by registered post.
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 account.
I can confirm that I am unable to offer to pay the money which I owe in full.
A relative is prepared to offer me £xxxx. I want to offer this sum as an ex-gratia payment, in full and final settlement of the account. The offer from my relative will not be available forever and my relative will not make the payment unless the offer is accepted.
This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released for any liability. I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.
Payment can be made within 14 days of receiving your written agreement of this offer and method of payment.
I look forward to receiving your reply.
Yours faithfully
It's no use saying, "We are doing our best." You have got to succeed in doing what is necessary. Winston Churchill
Are you making the official minimum repayments or have you entered into a much lower payment figure with them? If you're still making the 'official' repayment, then they wont accept a full and final settlement....
Weggy thank you for your guidance.
I am making the official minimum repayments to all cards. Therefore to get things rolling I've decided to choose one lender next month and cut the minimum to "half minimum" and then "quarter minimum" the month after that. I'll cancel the DD and replace it with a new standing order that I can control. Finally, in month two or three, once they realise I'm behind, I will send the f&f offer letter and say I am unemployed.
I suppose the problem with this approach is that you save 30-50% on what you owe by reaching f&f agreements with your lenders. However, you accumulate new "default notices" on your credit record with the accounts you settle with.
But seeing as I already have 3 defaults, I've decided another 8 defaults won't damage my credit record any more than it is already damaged.
Any comments welcome.
It's no use saying, "We are doing our best." You have got to succeed in doing what is necessary. Winston Churchill
I am making the official minimum repayments to all cards. Therefore to get things rolling I've decided to choose one lender next month and cut the minimum to "half minimum" and then "quarter minimum" the month after that. I'll cancel the DD and replace it with a new standing order that I can control. Finally, in month two or three, once they realise I'm behind, I will send the f&f offer letter and say I am unemployed.
I suppose the problem with this approach is that you save 30-50% on what you owe by reaching f&f agreements with your lenders. However, you accumulate new "default notices" on your credit record with the accounts you settle with.
But seeing as I already have 3 defaults, I've decided another 8 defaults won't damage my credit record any more than it is already damaged.
Any comments welcome.
Probably not what you want to hear, but you're a long way from being able to negotiate a full and final settlement. You'll need to enter into a payment agreement with these companies and then keep to those agreements for many months. It took me nearly 5 years from getting the first default to clearing all the account with full and final settlements.
You're correct what you say about your credit record. Mine is totally shot to pieces and it stays that way for 6 years from the date of default. I picked up about half a dozen defaults, and one CCJ. Thankfully, I'm now just under a year away from my record being cleared of all the defaults and the CCJ. But then if you're in such a mess with credit, the last thing you need for the next few years is more credit.....
As for default notices - they cant issue another default when you settle. It's one default per account.... end of!
What did you say in your letter? Did you explain where the money was coming from and say why it was a good deal for them? I want to make full and finals when I sell my house but if they know I have a business which, ok, got me in this mess, but is actually picking up and looking ok for the future they might think they would be better to hang on and wait.
Didnt say where the funds were from in my letters. I think only one of them actually asked so I said they were from a relative, and wouldnt be available for ever.....
If the debt has been passed to a DCA, do you make your offers to them rather than your original creditor?
Composing my letters while the boss is out...
All mine went through the DCA. Once they've been passed to DCA, you'll find that hardly any original creditors will even talk to you..... they'll tell you to contact the DCA.
Also ask the DCA if they have bought the debt. If they have, they tend to have more scope to give you a bigger discount on the the full and final.
Replies
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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 account.
I can confirm that I am unable to offer to pay the money which I owe in full.
A relative is prepared to offer me £xxxx. I want to offer this sum as an ex-gratia payment, in full and final settlement of the account. The offer from my relative will not be available forever and my relative will not make the payment unless the offer is accepted.
This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released for any liability. I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.
Payment can be made within 14 days of receiving your written agreement of this offer and method of payment.
I look forward to receiving your reply.
Yours faithfully
Weggy thank you for your guidance.
I am making the official minimum repayments to all cards. Therefore to get things rolling I've decided to choose one lender next month and cut the minimum to "half minimum" and then "quarter minimum" the month after that. I'll cancel the DD and replace it with a new standing order that I can control. Finally, in month two or three, once they realise I'm behind, I will send the f&f offer letter and say I am unemployed.
I suppose the problem with this approach is that you save 30-50% on what you owe by reaching f&f agreements with your lenders. However, you accumulate new "default notices" on your credit record with the accounts you settle with.
But seeing as I already have 3 defaults, I've decided another 8 defaults won't damage my credit record any more than it is already damaged.
Any comments welcome.
Probably not what you want to hear, but you're a long way from being able to negotiate a full and final settlement. You'll need to enter into a payment agreement with these companies and then keep to those agreements for many months. It took me nearly 5 years from getting the first default to clearing all the account with full and final settlements.
You're correct what you say about your credit record. Mine is totally shot to pieces and it stays that way for 6 years from the date of default. I picked up about half a dozen defaults, and one CCJ. Thankfully, I'm now just under a year away from my record being cleared of all the defaults and the CCJ. But then if you're in such a mess with credit, the last thing you need for the next few years is more credit.....
As for default notices - they cant issue another default when you settle. It's one default per account.... end of!
Thanks. x
Didnt say where the funds were from in my letters. I think only one of them actually asked so I said they were from a relative, and wouldnt be available for ever.....
Composing my letters while the boss is out...
All mine went through the DCA. Once they've been passed to DCA, you'll find that hardly any original creditors will even talk to you..... they'll tell you to contact the DCA.
Also ask the DCA if they have bought the debt. If they have, they tend to have more scope to give you a bigger discount on the the full and final.