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Can any1 explain full and final settlement please?
outrageous_monkey
Posts: 1,192 Forumite
My husband and I have 2 debts that we are able to pay off. We have 10k to put towards the debts. 1st debt is with virgin credit card, that is as near as damn it 6k. The other debt is with the loyds tsb (car loan), that is about 6k. I have read somewhere on here about 'full and final settlements'. However, I cant remember how they work. Could some one please explain? Also if I have posted this on the wrong forum I am very sorry. :xmassign:
I also remember the words of my friends, but I would rather have enemies than friends like you 
would like to make it known that ZubeZubes avvy is a DHN, she's not dancing 
would like to make it known that ZubeZubes avvy is a DHN, she's not dancing 0
Comments
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It is simply a legal phrase used, for example, when someone is only part-paying for something. They put the phrase in the letter and if the cheque is encashed, the recipient can't make a further claim. Usually, the recipient signs a receipt with the expression within and sends it back."Some say the cup is half empty, while others say it is half full. However, this is skirting around the issue. The real problem is that the cup is too big."0
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Thanks
I'm gonna sound really stupid here (please excuse my ignorance), but could we 'use' a full and final settlement with a credit card and bank loan, or can we only legally pay it in full? thanksI also remember the words of my friends, but I would rather have enemies than friends like you would like to make it known that ZubeZubes avvy is a DHN, she's not dancing 0 -
Have you defaulted on either of the debts?
ie: missed payments.0 -
Thanks.
No defaults.I also remember the words of my friends, but I would rather have enemies than friends like you would like to make it known that ZubeZubes avvy is a DHN, she's not dancing 0 -
It is highly unlikely that any bank/credit card/finance company would take a full and final settlement on an account that is being conducted properly. It is generally used when an account has defaulted and gone into arrears. An organisation may then take a reduced full and final settlement rather than write the whole debt off.Don't lie, thieve, cheat or steal. The Government do not like the competition.
The Lord Giveth and the Government Taketh Away.
I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)0 -
Thank you very much.
Well looks like were gonna have to pay it off in full. I just wondered about the full and final settlement. OI also remember the words of my friends, but I would rather have enemies than friends like you would like to make it known that ZubeZubes avvy is a DHN, she's not dancing 0 -
On the loan though you may get an early settlement reduction, depending if the interest was added at the start of the loan. Just depends on the terms of the agreement. It may be that you will have to pay a redemption penalty i.e. 3 or 6 months interest. It would be worth checking the agreement.Don't lie, thieve, cheat or steal. The Government do not like the competition.
The Lord Giveth and the Government Taketh Away.
I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)0 -
IF you defaulted and offered part-payment, you might ask them if they would accept it in full & final settlement. When you sent the payment, it could be in f&fs just to ensure they would not come back to you in the future for more.
Okay?"Some say the cup is half empty, while others say it is half full. However, this is skirting around the issue. The real problem is that the cup is too big."0 -
But doesn't defaulting have a damaging effect on your credit rating? I can understand the attraction of not paying back the full amount that you owe but surely the damage done to a person's credit rating is not worth not paying for a few months just to get ££££s not off??2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0 -
I was talking hypothetically - perhaps I should have said 'one' rather than 'you'."Some say the cup is half empty, while others say it is half full. However, this is skirting around the issue. The real problem is that the cup is too big."0
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