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Full and final settlement help thread

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  • Firefly
    Firefly Posts: 3,024 Forumite
    First Anniversary Combo Breaker
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    I hate to be a pain interrupt but can anyone tell me why my debts I've been paying by arrangement don't seem to be on my Experian credit file?

    I am concerned about having a partial settlement listed instead of final so checked my file and there is nothing on there? :confused:
    Do not allow the risk of failure to stop you trying!
  • JayneC
    JayneC Posts: 912 Forumite
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    I too quried this with Experian and was told that not all debts are registered with them they may be registered with another credit reference agency. eg Equifax...
    Official DFW nerd - 282 'Proud To Be Dealing With My Debts'
    C.R.A.P.R.O.L.L.Z member # 56
  • Penelope_Penguin
    Penelope_Penguin Posts: 17,288 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
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    Sorry to be pedantic, but full and fianl settlements can be problematic and not legally binding.

    Case law requires there to be some item to be handed over at the same time as the settlement (try offering a bottle of wine to Wescot, and see what reaction you get!).

    Alternatively, the F&F can be made by a third party (this is referred to in a sample letter in one post, but the implication is not explored).

    In response to the queries about making settlement offers before an account is in default, my experience is that creditors will politely decline. As far as they can see, you're still making payments, and they are still able to add interest and charges.

    I'll subscribe to this thread, so if anyone needs clarification of this (it' slate after a long day!), please post again.

    Penny. x
    :rudolf: Sheep, pigs, hens and bees on our Teesdale smallholding :rudolf:
  • Weggy
    Weggy Posts: 462 Forumite
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    To Tawnyowls I say: I think everybody has a moral responsibility to repay ALL of their debts. Nobody makes them spend money they can't afford so why should I (or you) pick up the tab?

    In one early paragraph, you've completely flawed your own argument. You openly admit that you don't pay interest..... so please kindly explain to me how YOU are 'picking up the tab'.....?! :rotfl: :rotfl: :rotfl: :rotfl:
  • Sorry to be pedantic, but full and fianl settlements can be problematic and not legally binding.

    Case law requires there to be some item to be handed over at the same time as the settlement (try offering a bottle of wine to Wescot, and see what reaction you get!).

    Alternatively, the F&F can be made by a third party (this is referred to in a sample letter in one post, but the implication is not explored).

    Penny. x

    Penny,
    I find this quite worrying and would like to know a bit more about it, it seems to me that you would have a bit of trouble getting someone to accept an item and if they did, keep a record of it. The third party way may be more practical bit i know nothing about the details.

    If you could provide some more info, or a source where i could find the details it would be appreciated.

    Please don't take offence at this next comment, as I don,t doubt what you say, Can I ask what your basis for this is (personal experience?), or what background you have (studied Law?)
  • Penelope_Penguin
    Penelope_Penguin Posts: 17,288 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
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    No offence taken. :D

    I'm a money adviser at CAB, so have a lot of professional experience of advising in cases like this. My comments about the status of F&F settlements comes form a colleague of mine who is an insolvency practitioner with a national, well respected firm. Details at work, so can't get exact wording atm.

    If you're thinking about F&Fs, I'd strongly advise you to get advice. CAB, CCS, PayPlan (think you may find links on this site, or reply and I'll get them for you).

    Without looking into your full details, I can't really suggest what other options might be. I'm supposed to be working from home today, and can't class this as "work", unfortunately! :rotfl: :rotfl: :eek:

    Reply, if you'd like further clarification.

    Penny. x
    :rudolf: Sheep, pigs, hens and bees on our Teesdale smallholding :rudolf:
  • Penelope_Penguin
    Penelope_Penguin Posts: 17,288 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
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    ...............additionally, a third party donation cannot be "sham". That is, you can't "give" the money to your mate, and then get them to "give" it back to you.

    This would be an offence (criminal, I think, but can't be sure).

    Penny. x
    :rudolf: Sheep, pigs, hens and bees on our Teesdale smallholding :rudolf:
  • Loopy_Laura_2
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    Morning everyone, just a little update from me after saying I was going to post some offers off the other day! Got my first response yesterday.

    Original Debt - £629
    I offered - £250 (just under 30%)

    They have come back and said they would accept £503. Now do I go with this or offer a lower figure? Was thinking £400.

    Any comments gratefully appreciated!
    :beer: Have champagne tastes...but got a beer budget!!:beer:
  • I assume from what you have said then that it is not strictly legal to use the guise of a family member offering to providing funds to settle a debt for you ?

    From reading other posts it seems like this a well liked and often used method, which does have obvious merit. – Has anyone ever had a problem with this being followed up?

    The advice on the national debt help line is as follows

    It is a good idea to get a third party such as a friend or relative to send the money on your behalf. This helps your agreement to be more legally binding if the creditor accepts the money via a third party

    the only problem is it gives little by the way of details. This doesn’t sound too far removed from the “sham” situation you mentioned above
  • Penelope_Penguin
    Penelope_Penguin Posts: 17,288 Forumite
    First Post First Anniversary Combo Breaker I've been Money Tipped!
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    Correct! If your friend or relative is really giving you the money, that's fine, but not just returning some money that you gave them.

    Haven't seen the National Debt helpline quote before. Would agree that this looks like it is suggesting you set up a "sham" situation.

    As you can see, I'm not keen to get on with my work............. :D

    Penny. x
    :rudolf: Sheep, pigs, hens and bees on our Teesdale smallholding :rudolf:
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