Full and final settlement help thread

fatbelly

irishabroad wrote: »

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Wescot Credit Services £31,500 paying £245 pm
Blair Oliver Scott £12,800 paying £201 pm
Marlin Finacial Services £2,800 paying £100 pm
Direct Legal Collections £1500 paying £50 pm
Marlin Financial Services (2nd debt) paying £31 pm

We are paying £630 pm in total and not scheduled to have everything paid off until close to 2022!!

We were hoping to try and make a settlement as we can get a lump sum (about £15000) from family but not sure what type of figure to offer or how much of the debts this would clear?

P.S An IVA has been investigated but wouldn't be suitable for us.

With 48k of debt and 630 per month available, an IVA does come to mind. 15k may not be enough to clear this by straight F&F but you could try offering 25% and see what the reaction is.

If any of these are pre-2007 it would be worth doing a cca request on them and getting a specialist to have a look at what comes back. It sounds like the Wescot loan was originally at the max allowed as a regulated agreement.

fatbelly

strawberryblonde wrote: »

Hi All
Happy New Year to you all

So 2015 is the year that my hubby and I are going to sort our debts once and for all.

We have unsecured debt of almost £64000 and just before Christmas were turned down for an IVA because our largest creditor who we owe £28900 to (mortgage shortfall) rejected it. We have been paying into a DMP at £100 per month for 4 years. Our income recently increased and Payplan calculated that we could pay £215 into an IVA. Our largest creditor felt that they would get more money at this higher amount through a DMP in 3 years than they would via the IVA over 5 years, due to the IVA fees. The only other 2 creditors who voted, voted to accept. The settlement would have been for 12% of our debts.

A family member has offered to help us out by lending us £10,000 to negotiate !!!!!!. Using the National Debtline calculation they would get 15.6% of what we owe which would amount to approx £4500 and this equates to about 4 years of payments via the DMP at the higher rate If we are unable to negotiate !!!!!! then we would have no choice but to go bankrupt and then they would effectively get nothing as we have no assets.

Has anyone had a similar experience or could offer some advice as to the best approach. Payplan suggested that we appraoch our largest creditor first to see if they will settle and then work from there.
Any advice/shared experiences would be gratefully received.

Honestly if bankruptcy is an option, go bankrupt. Get your mate to come up with £705 x 2 for the fees and save him/her 8.5k. You may get an income payments order of 215 x 36 but that's only 7.7k. Not sure why you would go for an IVA if bankruptcy is a possibility

B0B

fatbelly wrote: »

If you are still making above the contractual minimum payments on the cards they will not accept an offer. Maybe do a cca on them then post on dfw to say what comes back.

On the Santander loan, you can do a cca request. You can also reclaim ppi. I would suggest doing both before starting f&f discussions.

I am making the payments they accepted via the dmp. I think I will try a cca on Halifax. The others are that low now it's not worth the hassle.

Can I send a Ppi and a cca to Santander at the same time. ?

fatbelly

B0B wrote: »

Can I send a Ppi and a cca to Santander at the same time. ?

Don't see why not!

irishabroad

fatbelly wrote: »

With 48k of debt and 630 per month available, an IVA does come to mind. 15k may not be enough to clear this by straight F&F but you could try offering 25% and see what the reaction is.

If any of these are pre-2007 it would be worth doing a cca request on them and getting a specialist to have a look at what comes back. It sounds like the Wescot loan was originally at the max allowed as a regulated agreement.

Hi Fatbelly

Thanks so much for responding-I am pretty clueless at all this stuff to be honest.
I spoke to stepchange and they discussed an IVA but agreed it wouldn't be the best solution. £15000 would equate to nearly 30% of the debt so do you mean offer less than that by offering 25% or did you mean offer £25000 - sorry for the confusion!

Some of the debts are pre2007, what is a cca request?
Thanks in advance for your help

strawberryblonde

fatbelly wrote: »

Honestly if bankruptcy is an option, go bankrupt. Get your mate to come up with £705 x 2 for the fees and save him/her 8.5k. You may get an income payments order of 215 x 36 but that's only 7.7k. Not sure why you would go for an IVA if bankruptcy is a possibility

Thanks for your response Fatbelly. My hubby and I do not wish to go bankrupt for a variety of reasons and it would have to be an absolute last resort. I don't think it would be as clear cut as paying £215 per month as from what I understand, the IPO is not as flexible as with an IVA. It would also mean that any extra money that my hubby earns by way of commission would all be taken leaving us with nothing.At least with the IVA we would have been able to keep 60% of anything above his basic salary.

cmc_entertainment

Have offered 30%, but rejected. What are ppls success in % from them?

mtia

fatbelly

cmc_entertainment wrote: »

Have offered 30%, but rejected. What are ppls success in % from them?

mtia

There's some evidence from earlier in this thread that they like to settle around 55%

https://forums.moneysavingexpert.com/discussion/comment/57565821#Comment_57565821

In your case try to get them to suggest a figure so that you know how far apart you are. If they suggest 50% you could try to get them to accept 40% if you could afford that.

Remember to get everything in writing

bbk87

Hi all!

I am looking at offering some F&F in February, as I've done a lot of overtime in December and January already.

What do you recommend starting at as an offer? Would 30% be low enough? I don't want to pay more than 50% for each.

My debt amounts are only £199.94; £370.67; £238.03 - all are defaulted.

(I'm paying final payment on O2 in Jan, and Capital One is not defaulted or with a DCA)

fatbelly

bbk87 wrote: »

Hi all!

I am looking at offering some F&F in February, as I've done a lot of overtime in December and January already.

What do you recommend starting at as an offer? Would 30% be low enough? I don't want to pay more than 50% for each.

My debt amounts are only £199.94; £370.67; £238.03 - all are defaulted.

(I'm paying final payment on O2 in Jan, and Capital One is not defaulted or with a DCA)

so Littlewoods, EE and Aqua, 199.94, £370.67 and £238.03

Look it's a case of 'if you don't ask, you don't get'

But these are all relatively small debts and still seem to be with the original lender.

Give it a go and see what they come back with. At least if you start at 30% you have room to go up a bit.