Is this ok?

cfc125

Just found out that a family member had borrowed some money 3yrs ago from a money lending company (not a high street name!). They were occasionally paying £20 per month back, but because of difficulities haven't paid a penny since last June. They owe nearly £1k but after telling me their situation I contacted the company on their behalf. The person I spoke to said they were willing to accept half the amount as full and final payment. What I want to know, having never dealt with this kind of thing, does this sound feasable? I would hate to lend them the money to pay, to find they still have to pay the balance in a couple of month's time!

fuzzgun19

I think companies do take reduced full & final settlements, but if you go ahed get them to confirm everything in writing.

impy78

It does, as if you agree on a settlement, the loan company will often remove the interest and any charges on the balance.

If in doubt, ask for written confirmation that the debt has been satisfied.

hueygeorge

Hi
I think some places will accept a lower agreed amount - I suppose they are just happy to get some money back! I would check it thoroughly before you lend any money though - CAB or https://www.nationaldebtline.co.uk both give good advice. This web-site is also great for advice - someone else who is more knowledgable than me on the subject should be along soon!
Cheers and Good Luck!
Karren