Full & final settlement question

cathy57

Hi everyone,

I hope someone can advise me please.I am into a DMP with Payplan.I have quite a number of creditors.One of them, Mercers debt collection Ltd, acting on behalf of Barclaycard,have agreed to an offer of £690.00 for a debt of £1705.
I have accepted their offer,and asked them to put it in writing,which they did.
What I am concerned about is that they sent their letter on the 29th of May,I received it on the 3rd of June,but they say they would accept the full and final settlement of the debt provided that it was made by the 2nd of June.Of course,it would be impossible.
I have spoken to them about it and they said not to take any notice of the date and that the debt would be settled.I told them I would ask for advice before settling.Payplan told me I could pay and then to ask for a letter that the account is now paid.The thing is that I don't want to pay and then be told I still owe the difference because I did'nt pay on time.
Do you think I should ask them to send me a new offer with a new time limit date?
Many thanks for any advice.

UNCLE_BUCK

cathy,

only pay when you are satisfied with the wording of the settlement letter from barclays, are they saying that they will not sell the remaining debt?

cathy57

Hi Uncle Buck,
Thank you for your quick reply.
Here are their words : "We are prepared,without prejudice,to accept £690.00 in full and final settlement of the debt,provided that the payment is made by the 2nd of June".
I actually received the letter on the 3rd of June.So that why,I am a bit concerned paying them.

UNCLE_BUCK

I am not by any means an expert, but from what i have learnt from my readings on here, I would want them to state they will not chase the remaining debt or sell on to a third party, and you could also push for them to mark your file as satisfied. I think its important to get it right if they are serious in settling this dispute they will wait.

UNCLE_BUCK

You may want to send somthing like this


The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG


Dear Sir/Madam

Re: 4000000000099992

We write with reference to the money which you are claming on the above account. without predjudice

I can raise £690 and I want to offer this as an ex−gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Payment can be made within 2 weeks of receiving your written agreement of this offer and method of payment.

We look forward to receiving your reply.

Yours faithfully
Mr A N other

10past6

cathy57 wrote: »

Here are their words : "We are prepared,without prejudice,to accept £690.00 in full and final settlement of the debt,provided that the payment is made by the

Before agreeing to any settlement, their letter MUST contain this paragraph:

This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that we will be released for any liability.

If they refuse to include it, there's every possibility the O/S balance could be passed / sold on.

cathy57

Thank you so much all,to have replied so fast to my query.I am going to write to them and insist that they agree to include the paragraph 10past6 mentioned in his reply.In they don't,I won't pay.
Mind you,I am now a bit worried,because I settled a debt a few week ago with Hitachi Capital,however they did confirm that my payment had been accepted as a final settlement and that my account was now closed with no further payments required.So hopefully this is the end of it with this debt.