Full and final settlement help thread

van22663

Sgtrock,
I was in a similar situation to yourself, lost both my parents this years & had extra money to pay off some of the debts.
If you already have a debt plan in place with someone, you may need to approach them to act on your behalf but I am not sure as I have not used them.
I basically made all the arrangements myself with a phone call. Been paying a small amount by direct debit for 5 years. I think that I managed to get such good F&F offers because I have had the debts so long and they have all been passed to debt collecter companies. Dont think you will have much joy with your overdraft but definately worth trying with the others. You do not need to tell them how much you have been left, I offered 20% which obviously is a massive 80% discount which I did not expect to get but 3 of them gave me 70% discount, so well worth a go. You will have to haggle a bit. Good luck

LegalBlonde

Hi

Sorry if this question is asked all the time but how does it appear on your credit file if you make any full and final settlement agreements? As opposed to paying it off in full over time.

Thanks

SgtRock

van22663 wrote: »

Sgtrock,
I was in a similar situation to yourself, lost both my parents this years & had extra money to pay off some of the debts.
If you already have a debt plan in place with someone, you may need to approach them to act on your behalf but I am not sure as I have not used them.
I basically made all the arrangements myself with a phone call. Been paying a small amount by direct debit for 5 years. I think that I managed to get such good F&F offers because I have had the debts so long and they have all been passed to debt collecter companies. Dont think you will have much joy with your overdraft but definately worth trying with the others. You do not need to tell them how much you have been left, I offered 20% which obviously is a massive 80% discount which I did not expect to get but 3 of them gave me 70% discount, so well worth a go. You will have to haggle a bit. Good luck

Many thanks. I agree,I think a f+f on the overdraft may be pushing my luck. It's not as if it is a loan or company as such. Halifax have stopped adding charges after I phoned them saying that my Stepchange payments were less than their charges & I was falling further behind etc.
Shoosmiths is my immediate problem. I may phone them soon. Perhaps they may negotiate on a f+f on behalf of Nationwide? I'm not sure,as they are a solicitors..?
Well done on sorting your own situation out,albeit under sad circumstances.

heatherks

my littlewoods account is with moorcroft ..i owe just over £700 and they sent me a letter just before Christmas asking i want to settle it for £580 and gave me 6 weeks ..i have no spare money at present but would only be prepared to pay £400

Monkeyballs

Hi all,

Oddly quite exciting!

I've been doing some reading and have just emailed a couple of F&F offers to two of my creditors, they're only small but my brother is willing to give me £250 at the end of Jan from his annual bonus so long as I can prove to him that it is being used to repay off a (or several) debts in their entirety...

I have offered Capquest £100 against an outstanding balance of £280 and Welcome Finance £80 against a balance of £170 and with the remainder I can repay my Barclays overdraft...

I've only been on my DMP for 7 (or 8 by the time the payment is made if accepted) and have around another 2 1/2 years to go before the end!

From experience do you think that these creditors are likely to accept? I probably have another £20 wiggle room if needed...

Thanks,

MB

notsocannylass

We entered into a DMP with Payplan back in July 2009 with debts of around 130K. To date we have repaid 159K and according to them have 12000 remaining to pay. My husband lot his job in October. We knew this was likely to be, so informed Payplan immediately . Our DMP was scheduled to be completed in Jan 2014. Every step along the way we informed Payplan by phone or by email. We knew we would be receiving a settlement of around 10k and we told Payplan that we would offer this as a final settlement to out creditors. Our final regular payment was made at the start of Nov and as we were expecting the lump sum, we cancelled the standing order. The lump sum of 10k was paid to Payplan mid November. We were told negotiations for a short settlement were underway and that creditors should look on our offers favourably. Since the beginning of December we have received numerous phone calls and letters from our creditors - adding charges and default letters - and have repeatedly contacted Payplan only to be told that very few of the creditors will accept anything less than the full amount. It transpires that back in October, when my husband lost his job, we should have been instructed to complete a new I and E form! So now that we have done that , we are waiting again and Payplan have our 10k and the creditors are hassling us having left us alone for 4 plus years!!
Advice? Suggestions on a postcard please?!

happy_bunny_2

LegalBlonde wrote: »

Hi

Sorry if this question is asked all the time but how does it appear on your credit file if you make any full and final settlement agreements? As opposed to paying it off in full over time.

Thanks

Usually as Partial settlement unless you can persuade them to mark as settled. Default is still there, so that trumps the full or partially settled flag.

notsocannylass

We entered into a DMP with Payplan back in July 2009 with debts of around 130K. To date we have repaid 159K and according to them have 12000 remaining to pay. My husband lot his job in October. We knew this was likely to be, so informed Payplan immediately . Our DMP was scheduled to be completed in Jan 2014. Every step along the way we informed Payplan by phone or by email. We knew we would be receiving a settlement of around 10k and we told Payplan that we would offer this as a final settlement to out creditors. Our final regular payment was made at the start of Nov and as we were expecting the lump sum, we cancelled the standing order. The lump sum of 10k was paid to Payplan mid November. We were told negotiations for a short settlement were underway and that creditors should look on our offers favourably. Since the beginning of December we have received numerous phone calls and letters from our creditors - adding charges and default letters - and have repeatedly contacted Payplan only to be told that very few of the creditors will accept anything less than the full amount. It transpires that back in October, when my husband lost his job, we should have been instructed to complete a new I and E form! So now that we have done that , we are waiting again and Payplan have our 10k and the creditors are hassling us having left us alone for 4 plus years!!
Advice? Suggestions on a postcard please?!

shinner

3 cards same company will settle for 40% on 2 accounts but want 90% for other. Can i settle 2 and continue with token payment on the other? Will they then start to hassle me about the 3rd ? will that come down or do i just sit tight and wait?
Mum helping out not my money.

fatbelly

shinner wrote: »

3 cards same company will settle for 40% on 2 accounts but want 90% for other. Can i settle 2 and continue with token payment on the other? Will they then start to hassle me about the 3rd ? will that come down or do i just sit tight and wait?
Mum helping out not my money.

This is not an exact science, is it?

Well done on getting the 40% deal on two cards. That's OK. 90% isn't.

So yes, settle the two at 40% but keep on paying them £1 per month token offer on the other one. As you say, the lump sum is not coming from you so they can't have access to that until they agree a sensible figure.

It will cost them more than £1 to process your payment and it isn't paying the debt off at any reasonable speed.

In about 4 months time, try again at 40%, or 30% if you want to allow some negotiation.