Full and Final Settlement Offer

treblex33_2

rog2,
thanks for your advice,
I have actually read the National Debtline factsheet on F&F's, I used their template letter to make the previous f&f offer. As you say there is no harm in checking if there is a CCA in place so I will send requests for this and also continue with the F&F offer.

With regards to timing, do you think the CCA request should go out first or should I send both letters in one envelope?

I will take your advice on Debt Counselling Charities as well and arrange an appointment to get their opinion on this, especially about the insurance cover. Thanks again,,

rog2

hoopie wrote: »

i asked them at the time to confirm in writing that the account was closed, but they just told my dad verbally that it was (as it was him who paid them the money on our behalf).

Hi hoopie - this is precisely why we always recommend that a debtor does not pay until he/she has written confirmation, from the original creditor or dca, that the payment will be accepted in Full and Final Settlement of the account.

At least, though, you have kept their original letter - does it mention that the payment will be accepted as 'Full and Final Settlement'?

rog2

treblex33 wrote: »

With regards to timing, do you think the CCA request should go out first or should I send both letters in one envelope? [/COLOR]

Do NOT, under any circumstances, send both the F&F letter and the cca request letter in the same envelope.
They will, at best, think that you are 'clutching at straws' and will be highly unlikely to take either letter seriously.
Personally, I would send them the cca request and wait the required 12+2 days. If you receive a compliant true copy of the original cca, then you can make the F&F offer.

hoopie_2

hi, the letter read:

"in order to bring this matter to a conculsion, i am prepared to offer a one off payment of £11,000 on the outstanding balance to settle the debt, by way of a one off lump sum payment, then no further action will be taken against you. The account will be close on receipt of that payment. You will not be required to pay back the remaining balance of the debt. The debt will then be recorded as satisfied with credit reference agencies."

rog2

hoopie wrote: »

hi, the letter read:

"in order to bring this matter to a conculsion, i am prepared to offer a one off payment of £11,000 on the outstanding balance to settle the debt, by way of a one off lump sum payment, then no further action will be taken against you. The account will be close on receipt of that payment. You will not be required to pay back the remaining balance of the debt. The debt will then be recorded as satisfied with credit reference agencies."

Have you checked your credit reference file, to see that this has been marked as 'satisfied'?

If it has, then you should send them a copy of the letter (keep the original) stating that the payment was made in Full and Final Settlement of the original debt. Tell them that, as far as you are concerned, the 'debt' is settled and that you will report any further attempts, by them or anyone purportedly acting on their behalf, to the OFT, Financial Services Association and other relevant authorities.

hoopie_2

Thanks, that is great advice. how do i check my credit reference file. i feel a bit better, now i know there is something i can do about it.

rog2

hoopie wrote: »

How do i check my credit reference file. i feel a bit better, now i know there is something i can do about it.

You can write to the Credit Reference Agencies requesting your credit report, under the Data Protection Act. There is a fee, currently £2, for this service, but they must provide you with ALL of the information, that they hold on you, within 7 days of receipt of your request and payment.

For an explanation, plus the addresses of the Credit Reference Agencies, have a look at the following link:

http://www.ico.gov.uk/for_the_public/topic_specific_guides/credit.aspx

You can, alternatively, sign up for a 'free' trial period with any of the Credit Reference Agencies although you must be careful to cancel your registration within 30 days otherwise you could be charged quite heavily.

hoopie_2

just checked with experian and it has not been settled. am very upset. but all i can do is contact them with the proof of the letter they sent originally. do you not think the way the worded the letter is legally binding?

i have got a bad feeling about this that they have lied to us about settling the amount and losing the account and it was their intention from the start to just knock the £11,000 off the balance.

thanks for your advice.

rog2

hoopie wrote: »

just checked with experian and it has not been settled. am very upset. but all i can do is contact them with the proof of the letter they sent originally. do you not think the way the worded the letter is legally binding?

i have got a bad feeling about this that they have lied to us about settling the amount and losing the account and it was their intention from the start to just knock the £11,000 off the balance.

Although it did not contain the words 'Full and Final Settlement', I think that the letter, in itself, should be sufficient to convince a Court that your payment would be accepted as a complete 'closure' to the 'debt'.

I have, I am afraid to say, to agree with your 'bad feeling' - many creditors/dcas are very 'clever' in their wording of letters, often specifically designed to lull the 'debtor' into believing that their payment will be the end of the matter, only to 're-surface' after a couple of years demanding the 'balance' with, as in your case, accumulated charges and interest.

On the positive side, however, the letter that nationwide sent you did mention that the account 'would be closed on receipt of your payment and that no further action would be taken against you'. As it goes on to say that your Credit File would be marked as 'satisfied' then, in my opinion, not only do you have good grounds for complaint, but also you may be able to demand compensation for the distress that this is causing you.

I think you might be advised to give National Debtline (0808 808 4000) or CCCS (0800 138 1111) a ring for further clarification and advice.

hoopie_2

thanks for your reply,

i will try to get to the bottom of it tomorrow. i do have a dmp with cccs, so will seek advice from them if nationwide still insist that i owe them the balance. however, cccs did agree that it was ok to go ahead with the settlement at the time, so who knows what advice they will give.

it's good to know that the letter does contain some language i can use against them if things turn nasty.