Full and final settlement help thread

sourcrates

City1 wrote: »

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

They don't have to accept any offers from you, however, it may be deemed unfair, if they refuse an offer when its the best offer you can make.

Worst case scenario, you could end up been taken to court, however, you would not be expected to pay more than you could reasonably afford, so the judge would set payments to reflect this, if your budget shows you only been able to pay £1 each, then that's what he will set.

This is why its important to keep the creditor informed of your situation, if you cant pay, tell them, if token payments are all you can afford, again, tell them so.
The more informed about your finances they are, the less chance of legal action, more often the debts are just sold on to different DCA`s, you just have to keep them all in the loop.

City1

sourcrates wrote: »

They don't have to accept any offers from you, however, it may be deemed unfair, if they refuse an offer when its the best offer you can make.

Worst case scenario, you could end up been taken to court, however, you would not be expected to pay more than you could reasonably afford, so the judge would set payments to reflect this, if your budget shows you only been able to pay £1 each, then that's what he will set.

This is why its important to keep the creditor informed of your situation, if you cant pay, tell them, if token payments are all you can afford, again, tell them so.
The more informed about your finances they are, the less chance of legal action, more often the debts are just sold on to different DCA`s, you just have to keep them all in the loop.

I think what I would be worried about is getting a charge against our house .

sourcrates

City1 wrote: »

I think what I would be worried about is getting a charge against our house .

That won't happen unless they first take you to court, and you default on the payments the court has set.
That's is a l o n g way off, and even if it happened, it could be challenged to be set aside.

Don't over think things lol !!!!

City1

sourcrates wrote: »

That won't happen unless they first take you to court, and you default on the payments the court has set.
That's is a l o n g way off, and even if it happened, it could be challenged to be set aside.

Don't over think things lol !!!!

For the past 16 months I have over thought everything!

Just really want to try and make things easier for the family. Which I am sure majority of people can empathize with.

Cheers

sourcrates

City1 wrote: »

For the past 16 months I have over thought everything!

Just really want to try and make things easier for the family. Which I am sure majority of people can empathize with.

Cheers

It's only natural, but in reality, a creditors options are pretty limited, as long as you cooperate.
I'm sure it won't progress that far though !!!

NewcastlePaul

Originally £108k in Debt
10 years of a Stepchange DMP has seen that come down to just over £50k
I applied last year with all my creditors to reclaim PPI and received back over £29k. £4k of that was balance reduction however surprisingly £25k of it was sent in cheques which i put in a bank account.

I have written to all my creditors with an opening offer of 30%
and I have received my first reply today.

Marlin have said they won't accept the offer but will accept the following offers on accounts..

£2,296 (Balance is £4,592) so 50%
£1,527 (Balance is £3,817) so 40%

They also rather than F&F they will report it as
"Partially Settled" with a "Nil" balance outstanding.

Does this seem like a good deal or should I pay the 40% and then offer 40% for the other one or should I increase the offer if they take it as F&F. Also the money is in my mothers account so the signed cheque will be from her bank.

I rent a council flat and have no assets.
I have managed my budget and DMP over the years and not needed or thought about credit and don't plan to ever get any.
That said you never know when your washing machine or fridge is going to pack up so never say never.

I expect to still be on a DMP a maximum of 4 more years.
(less if more creditors take a lower %) . My PPI refunds have effectively meant I'm going to be out of debt 6 years earlier than when I started the claim

What is the implications of Partially Settled with Nil Balance
How long will it stay on my file and how do I word any reply when I send payment and whats to stop them cashing cheque, reducing balance and denying Partial Settlement.

fatbelly

NewcastlePaul wrote: »

What is the implications of Partially Settled with Nil Balance
How long will it stay on my file and how do I word any reply when I send payment and whats to stop them cashing cheque, reducing balance and denying Partial Settlement.

Those are the correct marks. They stay on file until six years after the default or the settled date, whichever comes first.

Their letter to you is the proof of the deal. Just refer them to it when you send your cheque

Well done.

Meatloaf1981

I would be making pro rata F&F offers to all creditors at 30% in that case, bearing in mind you can technically afford to go up to 50%. In making the offers, did you make sure to inform them that the money you have available for f&f is finite and that you are not able to negotiate higher amounts without being unable to meet similar offers with other creditors who have indicated they will be accepting? I would also re-iterate that you would like to settle the account and by not accepting the offer, you will be forced to continue making token payments for the foreseeable.

NewcastlePaul

fatbelly wrote: »

Those are the correct marks. They stay on file until six years after the default or the settled date, whichever comes first.

Their letter to you is the proof of the deal. Just refer them to it when you send your cheque

Well done.

So it is safe to accept that they wouldnt pursue the debt further. Have you had any experience of refusing offer unless they make it F&F and having them agree.

Would obviously prefer F&F but if only difference is a poor credit record then thats not that important in the scheme of things I suppose.

NewcastlePaul

Meatloaf1981 wrote: »

I would be making pro rata F&F offers to all creditors at 30% in that case, bearing in mind you can technically afford to go up to 50%. In making the offers, did you make sure to inform them that the money you have available for f&f is finite and that you are not able to negotiate higher amounts without being unable to meet similar offers with other creditors who have indicated they will be accepting? I would also re-iterate that you would like to settle the account and by not accepting the offer, you will be forced to continue making token payments for the foreseeable.

I copied the Debtline template letter and then offered them all 30%. I enclosed a separate sheet with my Stepchange reference number and a list of all creditors, outstanding balances, monthly payments they received from SC and how many months it would take to clear. I did mention that I had sent the same letter to all creditors and 30% was available to all however should that offer amount increase it may not be affordable if they all accepted it