Full and final settlement help thread

tequilabird

Stewart_78 wrote: »

One thing to make sure is that all the accounts are properly defaulted and marked as such on your credit file. What you don't want are AP / AR / 6 markers which go on forever as once it's defaulted, it vanishes from your file after 6 years, paid or not. Your file is going to be trashed anyway. If they are not defaulting you, it might be wise to stop paying anything for a few months and plead absolute poverty.

It may be that after 6 years of token payments and the account gone from your file, they will be open to offers and you may be in a position to offer them something in settlement. That's my plan anyway and I'm 18 months from the 6 being up now.

Good luck.

Thanks Stewart.

How do I ensure that the accounts are properly defaulted? A few of the creditors have already mentioned that I will receive default notices, but will freeze interest and accept the £1 payments initially.

City1

Good evening, not visited here for a while.

We have been plodding on nicely with paying our debts thanks mainly to my wife working extremely hard. Unfortunately my personal situation has not changed.

However my wife is considering taking a permanent job as opposed to freelance which pays considerably less per year but gives good career progression.

I have two questions, 1) is it quite common for creditors to accept reduced payments to what we are paying at the moment? 2) And I think this question may have been asked previously, but can you make f and f payments in installment ( for example over a period of four months?)

Just trying to plan ahead and see what options we may have.

Cheers

sourcrates

City1 wrote: »

Good evening, not visited here for a while.

We have been plodding on nicely with paying our debts thanks mainly to my wife working extremely hard. Unfortunately my personal situation has not changed.

However my wife is considering taking a permanent job as opposed to freelance which pays considerably less per year but gives good career progression.

I have two questions, 1) is it quite common for creditors to accept reduced payments to what we are paying at the moment? 2) And I think this question may have been asked previously, but can you make f and f payments in installment ( for example over a period of four months?)

Just trying to plan ahead and see what options we may have.

Cheers

Hi,
Should have few problems reducing payments, you pay what you can pay, they either like it, or they don't, as for spread out full and final offers, Hmmm that's unlikley in my experiance, it defeats the object if you pay in instalments, you can ask, but don't be surprised if they turn you down.

City1

sourcrates wrote: »

Hi,
Should have few problems reducing payments, you pay what you can pay, they either like it, or they don't, as for spread out full and final offers, Hmmm that's unlikley in my experiance, it defeats the object if you pay in instalments, you can ask, but don't be surprised if they turn you down.

Thanks

Is there an argument to make token payments (£1) for the next 5 years as we have defaults on all our debt. And in that time try to save enough to make offers?

sourcrates

City1 wrote: »

Thanks

Is there an argument to make token payments (£1) for the next 5 years as we have defaults on all our debt. And in that time try to save enough to make offers?

Yes, a very good argument, expect some creditors to sell accounts on though, they get tired of waiting sometimes, bless lol

Stewart_78

City1 wrote: »

Thanks

Is there an argument to make token payments (£1) for the next 5 years as we have defaults on all our debt. And in that time try to save enough to make offers?

That's what I'm doing. Cabot have already offered to settle a 14k debt at 30%. I don't have spare cash yet but am saving up. Planning on something closer to 20% or 10% if they can't come up with a valid CCA as all my accounts are old.

Stewart_78

tequilabird wrote: »

Thanks Stewart.

How do I ensure that the accounts are properly defaulted? A few of the creditors have already mentioned that I will receive default notices, but will freeze interest and accept the £1 payments initially.

You should get a default notice. It all takes time. If you are paying £1 a month, I suspect they will all default you. The worst offender seems to be Barclaycard . I had to argue with them to get the default moved back to 2010 which they eventually agreed to. We've had less luck with my wife's Barclaycard which was only defaulted when she went to token payments last year. They won't budge on that because she paid 'too much' previously and they consider this an arrangement to pay. So by trying to pay off as much as she could, she is in a worse position that me. Good eh?

So I would stick with the token payments until your file shows a default for each account. Then you can start moving forward and looking at things like settlements, CCA requests etc.

City1

Stewart_78 wrote: »

That's what I'm doing. Cabot have already offered to settle a 14k debt at 30%. I don't have spare cash yet but am saving up. Planning on something closer to 20% or 10% if they can't come up with a valid CCA as all my accounts are old.

Thanks for your feedback.


On a further note, do you know how it would look if we sent a revised SOA, stating our intention to make token payments (£1). When we set up the plan our creditor list was around 25 (approx. 70k), with payments ranging from £40.00 per month down to £1 depending on size of the debt. Some debts have gone to DCA and some have remained within the bank or CC company. When we initially set up our plan (self managed plan) last May (I think), they didn't require a proof of income. At present I am not earning a wage, my wife is the main earner through ltd co. I don't think I will be earning a liveable wage anytime soon.


Cheers

Stewart_78

City1 wrote: »

Thanks for your feedback.


On a further note, do you know how it would look if we sent a revised SOA, stating our intention to make token payments (£1). When we set up the plan our creditor list was around 25 (approx. 70k), with payments ranging from £40.00 per month down to £1 depending on size of the debt. Some debts have gone to DCA and some have remained within the bank or CC company. When we initially set up our plan (self managed plan) last May (I think), they didn't require a proof of income. At present I am not earning a wage, my wife is the main earner through ltd co. I don't think I will be earning a liveable wage anytime soon.


Cheers

When I went to token payments I just told them I was earning far less than before and couldn't afford anything more. If they start hassling you for proof just ignore them.

City1

Stewart_78 wrote: »

When I went to token payments I just told them I was earning far less than before and couldn't afford anything more. If they start hassling you for proof just ignore them.

So would you just use a template letter for token payments, and then put in saying that your monthly income has dropped significantly?


Do they have to accept token payments? And what are the consequences of making those payments for the next five years, other than wanting to get full and final offers. Considering our defaults already what is the worst that could happen?


Cheers