Advice on making a full and Final offer

clarab_3

Hi folks,

As you can see I have a numbe rof debts still outstanding but have been dedicated to clearing them for some time now with some success.

Unfortunately, I made a bad error and landed with catalogue debts to reliable collections. (I thought I had cleared the balance - they insist I havent and are now contacting me for payment having lumped on 3 years worth of interest and charges)

I am now being pursued for approx £1100 (it goes up every time I waste more time arguing about it) I am in the position that I hope to have around £700 as a one time payment to offer in 2 months time. Any suggestions as to how I should go about this?

I know I should fight it more but you know when you are just so drained from fighting all the time? paying my debts has been my constant companion for 4 years and I'm tired.

Tixy

If you are planning a full & final offer always do it in writing and there are set terms you need to include (about nobody chasing you for the remainder and about marking your credit file as satisfied) - national debtline's template letter contains all the important info - http://www.nationaldebtline.co.uk/england_wales/temp/7358_60421.pdf

They also have a useful factsheet - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

clarab_3

thank you, thats exactly the kind of info I needed.

Its gutting to have to do it, that money would have gone a long way to clearing my next debt, but I cant take the stress of the constant phonecalls and threats while i try to solve this any longer

Tixy

One other piece of advice - especially as your debt is with a collector not the creditor, start your offer low, you can always increase it. Some suggest starting as low as 35%, I certainly wouldn't recommend more than 50% as your opening position.

One change I would suggest you make to the NDL letter is to add in a deadline for them accepting your offer, otherwise they can mess you around for ages - so maybe put a deadline of the date 2weeks after the date of your letter.

If you don't want to talk to them by phone send this letter - http://forums.moneysavingexpert.com/showpost.html?p=11571485&postcount=4 and if they call after they have received this either hang-up or refuse to confirm your security details with them.

clarab_3

Thank you Tixy - more great advice! I'd got quite comfortable in paying down the rest of my debts, maybe a little complacent, and I could kick myself for this one

fatbelly

Hi Clarab

If this is a pre-April 2007 agreement then you should know that the debt is unenforceable if they do not hold a signed agreement, and JD Williams often didn't bother to get a signature in the first place.

I have found that JD Williams group (Reliable are part of that group) are quite reasonable in agreeing not to pursue a debt under these circumstances. You probably know about requesting a cca.

If you can afford a F&F and have no other more pressing debts then it may be preferable to go for f&F in any case as it nails the debt finally. Of course, if it is unenforceable they ought to accept a very low offer.

I think it would be worth putting up a fight in this case - the charges are challengeable too.

Best of luck.