What has been your best offer on Full Settlement % amount on Debt ???

fletch3163

Can I ask a question please?

Do you have to have gone through the formal stuff before offering or asking for full and final settlement?

My MIL has debts, around £1,500 in overdraft Lloyds TSB, £2,300 loan Lloyds TSB. She's a pensioner and doesn't get a lot. I've asked for a refund in PPI and to pay back her charges, neither of which have been successful (yet). They're waiting for OFT to make their thoughts known. I've asked and asked them to stop charging her but they won't. I've moved her pension because she was living on absolutely nothing by the time they took their charges each month.

I would love to get rid of the Overdraft for her but no way can I afford £1,500, especially since it's built up of charges. Do I write and offer, say, £700 or £800 or is there a science to it?

Stupidly_Skint

How do Full and Final Settlements work? What is the procedure and do most comapnies actually agree to them?

Deep_In_Debt

fabforty wrote: »

Under CCS DMP rules every penny has to be divided equally between all of my creditors (6 in total). If I have £x spare to give to creditors, it cannot be used to pay off one debt. I have been paying £10 per month to each creditor for the past 3 years and I guess having bought the original debt from the respective banks for a fraction of the true value and getting peanuts each month in repayment, they are keen to bring it to an end. I have started to receive similar offers at frequent intervals - 2/3 times a year. I am expecting a payout of £7k early next year. I plan to contact the creditors, explaining that I might be able to raise 7k (it's roughly 30% of the total outstanding debt) and offer this to the creditors in F & F- conditional on them all accepting. I have already spoken to 2 creditors about this and they have agreed in principle - although I realise that they might change their minds when the time comes.

Hi

I'm with CCCS and you can pay off debts by F&F and they have a letter they will send you to do this. It just means that the other creditors will receive more each month - you clear a debt and keep paying the same amount so it still gets pro-rated.

I tend to wait for my debts to be sold to DCA's before making F&F's - best I've done which was pretty rubbish - especially compared to brokenhearted's, was £500 on £1,100 debt.

Deep_In_Debt

Stupidly_Skint wrote: »

How do Full and Final Settlements work? What is the procedure and do most comapnies actually agree to them?

Check out the National Debtline website for a good template letter.

It's best to wait until the debts are sold on to DCA's as they buy the debts for pennys in the £ and will generally negotiate a low amount - they'll still be making loads on it.

Original creditors are more difficult. If you've been managing your debts then it's unlikely they will accommodate but if you've been struggling and missing payments they MAY think about it. Original Creditors would only accept 65-80% of original debt whereas DCA's accept a lot less - 30% perhaps and they are probably making a huge profit on that!

Stupidly_Skint

Sorry if I sound stupid but I am new to this as I have been burying my head in the sand for some time. What is a DCA?

How do you sell debts on to them?

After recently being rejected for a loan, I was passed on to a Debt Management Company but found the man quite pushy and didn't really uderstand what these entailed. Is a DCA a similar thing?

Thanks

Deep_In_Debt

DCA's are debt collection agencies and usually a creditor will sell bad debts on - i.e. you've defaulted for a few months etc, struggling to pay, on a dmp. Creditors often get p'd off with receiving reduced amounts and will sell the debts on to look good for shareholders and housekeeping purposes - basically just to get rid of bad debts.

If you are considering a dmp, please only contact CCCS, Payplan or CAB who will offer free advice and fee free dmps if they are suitable for you.

I'm not good at explaining things so I hope this made sense!

Stupidly_Skint

Yes that did make sense, thank you for explaining.

I was put off by the Debt Management company that I was put in touch with (can't remember their name but it was through QDL or UCC - i think thats the same company??) as they have continually rang me about 10 times a day since first speaking to them on Monday.

I will take a look at the other cmpanies you have suggested.

Deep_In_Debt

CCCS do a debt remedy online tool - you can do that if you have all your info to hand. Not obligated and it will explain your options. I'm a bit of a techophobe and rubbish at links but check out www.cccs.co.uk.

CCCS won;t hassle as they are not after your money.

dubs1967

Whats all this full and final?My dealings with mbna indicate they will not mark your credit file FULL AND FINAL unless you pay the whole balance.Your credit file will be marked PARTIAL SETTLEMENT and this is a bad blemish on your file which will still f*** your credit flow up.

Useless_with_wonga

Yep Dubs you are right however if you are in the position of having to make a F&F then it would tend to suggest that one's credit rating would already be shredded and I can't see any disadvantage in squaring the Debt away with a F&F regardless of what they put on your credit report it will drop off after 6 years be that be a default or a F&F.
Just need to be wise and ensure that you have it all in writing before you pay up i.e it is in settlement and will not be pursued by them or third party blah blah blah.