Full and final settlement help thread

Stuh

I am having the same trouble with lloyds i owe £2200 and offered them £700 they wrote back saying no and nothing else. will go back adding a few % each time as i am on low payments so can take my time.
RBS the same as lloyds it seems to me the banks want as much as they can get where the DCA's who buy them will settle for a lot less..mmm
Frederickson Int settled @ 35%, Paragon 37% today, Marlin was interesting (formerly amex) they immediately wrote to me offering 25% off then 3 weeks later 50% off so i was cheeky and wrote back offering 30% they said no and 50% was the lowest, i will wait and then offer them 31% lol......the last of my defaults are due to go June 2014 so trying to settle everything by then.......will keep all informed as i go best of luck....stu

Jason_Bourne_2

Right here goes.....

I'm finally in a position where I can offer a decent full & final settlement offer but I have a few questions if anyone could pass on advice?

I have been in DMP for 3 years and my completion date is estimated for end of 2016. On my DMP I have 7 outstanding balances & 6 of them have registered defaults.

The one that hasn't defaulted is updated every month as green, up to date but states that it is an arrangement.

Question 1 is, what happens to this one when I pay it in full or pay an agreed full & final? Will either result on a default on completion? Is there no advantage to paying this one in full? Should I try get a F&F settlement with this? I could really do without another default as the rest of mine are all 3 years old.

Question 2 is, 2 of my balances are with the bank who I have a current account with so they will see the lump sum being placed into my account. I take it I really have no choice but to pay these ones in full....?

Question 3, What is realistically achievable from past experiences? I've read through the thread and see that the company, length of time in DMP, length remaining & amount being paid all factor. I pay £300 per month split between the 7 and I'm half way through a 6 year target. Given my circumstances I was thinking of starting off with around 35-40% with an aim of settling below 70%...?


Thanks for any advice you may have for me.

fatbelly

Q1. It should be marked partially settled. There is no need for them to register a default but strictly speaking it should have been done earlier like the others. So if it happens, argue that it should be backdated.

Q2. You should not be banking where you have debts. I would not be paying a lump sum into that account. Plenty of other banks to choose from, even if it's just a basic account.

Q3. That sounds reasonable to me.

National_Debtline

fatbelly wrote: »

Q3. That sounds reasonable to me.

And me.

Generally speaking, if a debt has been purchased by a debt collection agency they *may* accept a much lower settlement figure. This is because they often purchase the debt for small amounts. As such a settlement may still allow them to turn a profit on the debt.

I like the fact that you are going in at a low figure with the understanding that the creditors might try and negotiate you up. That's a very wise way of approaching it.

In case you have not seen it, here's a link to our full & final fact sheet:

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

Best wishes,

David @ NDL.

Stuh

Does anyone know if your credit rating can actually improve while there is still active defaults there?? the last of mine drop off early next year but i have not missed a payment on the dmp, mortgage my vanquis credit card etc for 2+ years and still my rating is poor!!
Also with a partial settlement each of the DCA are saying the info will remain there for 6 years "from settlement date" but if doing the same with a defaulted debt ALL the info falls off when the default is 6 years old is this correct? I have asked callcredit and there answer was not clear at all. many thanks:)

SgtRock

Hi all. This is my first post,so be gentle with me and please answer in layman terms. I get very confused with financial talk/jargon.
Basically,my ever worsening financial situation hit ridiculous levels around May with combined loans/cards totalling around £30K. I had to do something(which I should have done far sooner),so I contacted Stepchange. I have been paying £155 per month
,since June.
Current balances are:
Sainsburys Bank £10,942.93
Barclaycard £6,809.85
Blair,Oliver & Scott(Halifax loan) £3,924.64
Robinson Way(Halifax credit card) £751.43
Nationwide credit card £3,370.51
Halifax bank overdraft £2,431.67

However,I have recently inherited enough to pay off all of the above. Naturally,I don't wish to pay any more(far less preferably!) than I need to. My parents,God rest their souls,worked very hard through their lives & left me and my siblings approx £60K each through inheritance.
I really don't know what to do,or how to go about things now?
Do I keep quiet,& continue to pay £155 through Stepchange,& invest?
My gut feeling is to pay these debts off,with F&F offers,but wouldn't know where to start?! How much do I offer? Do I write or phone? Or do I actually ask Stepchange for advice,or is it not in my interest to let them know of my new situation?
I am worried that as I have banked this large amount,NOT into my Halifax bank account,but into an account I opened with Natwest in the summer,that I may not have helped my cause etc.
Incidentally,Nationwide sent me a very hostile letter recently and are to begin court proceedings(adding between £60 - £360 costs). Should this happen,it's not going to look good for me,should my inheritance being known.
Also,Barclaycard want £860.20 immediately,followed by a further £133.64 to reach them by 18/12/2013 !! The statement also mentions that Mercers Debt Collections Agency is now dealing with my account,& that I should phone them should I not be able to pay the above.

I could sure use some help...!

Jason_Bourne_2

Just pay it all and move on as quick as you can.

Fresh start.

SgtRock

Jason_Bourne wrote: »

Just pay it all and move on as quick as you can.

Fresh start.

Thank you,but surely offer less amounts(F+F offers)?

Jason_Bourne_2

SgtRock wrote: »

Thank you,but surely offer less amounts(F+F offers)?

If you can be bothered with the effort. You could pay it all off and still come away with over 30k and saving in monthly repayments.

I'm trying for f&f just now but I've been paying a DMP for 3 years, I can't afford the full amount or I would just pay it.

SgtRock

Jason_Bourne wrote: »

If you can be bothered with the effort. You could pay it all off and still come away with over 30k and saving in monthly repayments.

I'm trying for f&f just now but I've been paying a DMP for 3 years, I can't afford the full amount or I would just pay it.

Best of luck with that Jason.
I can certainly be bothered tbh. They have all given me grief over the past,& recently. Reducing the amounts by any percentage would be very useful and a moral victory too. My situation generally isn't that great,& by paying off these debts would only better my current monthly outgoings by £155. Good,but not life changing really. The remaining amount IS a lot,but I worry it may just drip feed my monthly shortfall etc,and may not last that long if I am not careful :-/