Full and final settlement help thread

Littke1devil

Hi guys I'm after some advice. Hubby has been in debt for a while and we have managed to pay a lot if it off we are left with 3 creditors Creditor 1- 1173.10 Creditor 2- 1218.82 Creditor 3- 4071.33. He is currently paying a direct debit of 50.00 PCM for 2 of them and 80 PCM for the other.

I'm
Not sure how all this works but if I were to get a gifted amount of money from relatives to help pay them off can I just ask for full
And final settlements for the 2 lower debts initially?

If so what percentage/amount should I offer? And what are the chances of them accepting. He has been paying these off for the past 4-6 years ( except the large amount which has only been the last year)

Any advice greatly appreciated thanks guys

fatbelly

Littke1devil wrote: »

Hi guys I'm after some advice. Hubby has been in debt for a while and we have managed to pay a lot if it off we are left with 3 creditors Creditor 1- 1173.10 Creditor 2- 1218.82 Creditor 3- 4071.33. He is currently paying a direct debit of 50.00 PCM for 2 of them and 80 PCM for the other.

I'm
Not sure how all this works but if I were to get a gifted amount of money from relatives to help pay them off can I just ask for full
And final settlements for the 2 lower debts initially?

If so what percentage/amount should I offer? And what are the chances of them accepting. He has been paying these off for the past 4-6 years ( except the large amount which has only been the last year)

Any advice greatly appreciated thanks guys

Put a figure to them using the National Debtline factsheet.

These will be repaid anyway in 2 years so you will not get spectacular deals. Maybe start at 40% and view 50% as success if you can get it.

Littke1devil

Thank you x

sazzy32

Hi all, Have started my own thread but might get more help on here.
7k debt
bought by Marlin.
I asked for a final settlement amount
In writing they have offered £1401
called to pay that told its an error.
But I have this in writing so what can I do here. Pay it online? Would they stand a chance in court if they took me there?

fatbelly

sazzy32 wrote: »

Hi all, Have started my own thread but might get more help on here.
7k debt
bought by Marlin.
I asked for a final settlement amount
In writing they have offered £1401
called to pay that told its an error.
But I have this in writing so what can I do here. Pay it online? Would they stand a chance in court if they took me there?

So their letter says clearly that they will accept £1401 in full & final settlement?

They were lucky that you phoned rather than just sending a cheque/ bankers draft.

It's debateable how legally binding these letters of acceptance are (it seems to be accepted that the deal is only binding if the payment is made by a third party). You are relying to some extent on them honouring what they have written.

And you don't want to part with £1400 only for them to continue harassing you for £5600.

If the letter is in any way ambiguous I think you need to write again for clarification.

If the letter is unambiguous you could risk a cheque but maybe use the phasing from this case in a covering letter:

In Bracken and Another v Billinghurst [2003] All ER (D) 488 (Jul), the claimants sued the defendant for an adjudication award of £43,984.66. The claimants had previously informed the defendant that they would accept £6,000 in settlement of the award and had been presented with a cheque for £5,000 in full and final settlement. The defence was based on the fact that the covering correspondence sent by the defendant's solicitors clearly stipulated that "The payment is tended as an offer of settlement which will deemed to have accepted by you and therefore be contractually binding if it is presented to your bank and cleared for payment. If you are not willing to accept the payment on these terms, would you please return the payment and we will assume therefore that the dispute will have to continue". The claimants took over two weeks to present the cheque for clearing and then two days after the cheque cleared wrote to inform the defendant that they would not accept the lesser sum in satisfaction of the debt. The claimants' application for summary judgment was refused on the grounds that this was too long a period of time for the claimant to have held the cheque and not informed the defendant of their intentions; furthermore, as the offer and payment were made by a third party, the presentation of the cheque was construed to be a clear acceptance of the offer of compromise.

I would however like you to get another opinion from someone, maybe National Debtline.

If the original letter was indeed sent in error, you would expect them to correct it in writing as soon as the error was noticed. I do wonder if you just happened to get a brainless idiot when you phoned Marlin.

mjnf

Hi guys, have 8 debts totalling nearly £15,000. Been with StepChange years ago using DMP but was made redundant and had to leave DMP and offer token payments of £1.50 per month to each creditor. Not 100% sure of ownership of most debts at the moment. Been paying £1.50 for couple of years now using Standing Orders through bank. Family friend offering to help me make f&f offers but...
have read that it's worth requesting written confirmation that states clearly whether each organisation currently holds an original signed Consumer Credit Agreement quoting CPUTR 2008.
As if they are not able to provide this then they are legally not able to chase the debt and must wipe it off by law.

Is this correct?

My monthly standing orders currently goto,
Apex CM
Wescot x2
Lloyds
Moorcroft
BLS
Blair Oliver Scott
Past Due Credit Solutions

I still get letters for 3 accounts from Lloyds & HBOS so guessing that those 3 accounts are owned by them


Any help or advice or thoughts would be highly appreciated, many thanks

thewhiteavenger

mjnf wrote: »

Hi guys, have 8 debts totalling nearly £15,000. Been with StepChange years ago using DMP but was made redundant and had to leave DMP and offer token payments of £1.50 per month to each creditor. Not 100% sure of ownership of most debts at the moment. Been paying £1.50 for couple of years now using Standing Orders through bank. Family friend offering to help me make f&f offers but...
have read that it's worth requesting written confirmation that states clearly whether each organisation currently holds an original signed Consumer Credit Agreement quoting CPUTR 2008.
As if they are not able to provide this then they are legally not able to chase the debt and must wipe it off by law.

Is this correct?

My monthly standing orders currently goto,
Apex CM
Wescot x2
Lloyds
Moorcroft
BLS
Blair Oliver Scott
Past Due Credit Solutions

I still get letters for 3 accounts from Lloyds & HBOS so guessing that those 3 accounts are owned by them


Any help or advice or thoughts would be highly appreciated, many thanks

Is that really your best strategy? If you have debts of under 15k, not a homeowner and no car worth over 1k, then your surplus income of around £10 per month would mean that you qualify for a Debt Relief Order. Then your relative could assist with the £90 fee instead of the 5-10k that a F&F strategy would cost them. And you're clear in 12 months.

mjnf

thewhiteavenger wrote: »

Is that really your best strategy? If you have debts of under 15k, not a homeowner and no car worth over 1k, then your surplus income of around £10 per month would mean that you qualify for a Debt Relief Order. Then your relative could assist with the £90 fee instead of the 5-10k that a F&F strategy would cost them. And you're clear in 12 months.

Thanks for your feedback
Sorry I forgot to say that I got a mortgage which was when all my debts started. On applying just before the recession I was told it'd be easier to take out a mortgage if I started using a credit card to build a credit score, I took one, got a mortgage and majority of the debts were run up during renovating the house. I was only early 20's at the time.
Anyway, I have a mortgage which is on a house, currently In negative equity

Also live in Scotland so debt relief order is out of question regardless but believe a trust deed is the Scottish Equivalent with similar terms - so currently unable to do either

fatbelly

mjnf wrote: »

Hi guys, have 8 debts totalling nearly £15,000. Been with StepChange years ago using DMP but was made redundant and had to leave DMP and offer token payments of £1.50 per month to each creditor. Not 100% sure of ownership of most debts at the moment. Been paying £1.50 for couple of years now using Standing Orders through bank. Family friend offering to help me make f&f offers but...
have read that it's worth requesting written confirmation that states clearly whether each organisation currently holds an original signed Consumer Credit Agreement quoting CPUTR 2008.
As if they are not able to provide this then they are legally not able to chase the debt and must wipe it off by law.

Is this correct?

My monthly standing orders currently goto,
Apex CM
Wescot x2
Lloyds
Moorcroft
BLS
Blair Oliver Scott
Past Due Credit Solutions

I still get letters for 3 accounts from Lloyds & HBOS so guessing that those 3 accounts are owned by them


Any help or advice or thoughts would be highly appreciated, many thanks

mjnf wrote: »

Thanks for your feedback
Sorry I forgot to say that I got a mortgage which was when all my debts started. On applying just before the recession I was told it'd be easier to take out a mortgage if I started using a credit card to build a credit score, I took one, got a mortgage and majority of the debts were run up during renovating the house. I was only early 20's at the time.
Anyway, I have a mortgage which is on a house, currently In negative equity

Also live in Scotland so debt relief order is out of question regardless but believe a trust deed is the Scottish Equivalent with similar terms - so currently unable to do either

Not sure about the link to CPUTR, but yes it is worth doing a cca request as if they do not provide the original agreement it strengthens your argument, particularly for pre-2007 agreements.

Try the National debtline sample letter in this factsheet

https://www.nationaldebtline.org/S/factsheets/Pages/29%20SCOT%20Credit%20agreements%20-%20getting%20information/Default.aspx

gemnomnom

Hi all,

Not sure if this is the right place to post my question. My OH currently has a debt of £233 which is with Lowell. We do not have any paperwork relating to the original debt, which is to EE/T-Mobile. Am I correct in thinking the first step is to write to Lowell for proof of the debt?

And secondly, I want to get a 50% F&F settlement offer. Am I being unreasonable to request that amount, plus agreement that they will mark his CRF as satisfied, and not partially satisfied?

We need it as satisfied and not partially satisfied as we are hoping to get a mortgage next year. I've read that banks will only consider fully satisfied debts, and not partial ones!

Thanks