Settlement - Amex

Achelois_2

Dear all

I think I have negotiated a full and final settlement with Amex

I have received the following letter (personal details excluded)

"In reference to our recent conversation, we can advise you that we have agreed to accept the sum of 1509 as settlement of your current outstanding debt of 4200.
This means that the 1509 must be received in this office by cleared funds no later than 30th February 2010. Failure to pay the agreed amount within the agreed time frame will render this agreement null and void and the oustanding balance stated above will be due again. Please contact this office upon receipt of this letter to arrange payment of your account."

Before I pay them, does this sound all above board and ok to you guys?

They have stated that the as far as they are concerned, the matter will be fully closed and my credit file updated within 6 to 8 weeks as "satisfied".

Thanks all

A x

DarkConvict

You need to small additions, the credit file will be updated to satisfied (and balence set to £0/nil)

Also you want them to add in the line that neither Amex or a third party will pursue for the remainder of the debt, as the debt would be considered satisfied in full.

Achelois_2

I wanted to make the payment to them tomorrow ( I say "Them" its actually to RMA who are "looking after" the debt) and RMA have stated the above - do I need it in writing though before I pay do you think?

DarkConvict

You always want the offer in writing and you want to keep it, because it is not uncommon for debts to be sold on when they shouldn't you need to a letter to show that the debt was satisifed in full, and that no one else will persue.

If you really want to make the payment, read the letter out to national debtline (freephone) and see what they say.

immoral_angeluk

Sounds ok to me, but I would send the payment in the form of a cheque or something along with a letter stating that encashment of the cheque is deemed as acceptance in full and final settlement of the account.

Achelois_2

Thanks guys - I did miss a bit on the end of the letter that states "Once paid we will send out a paid letter" too - so hoping this will be ok. I cant send a cheque as one of the conditions was that as my parents are paying they pay using cleared funds such as a debit card..... as this is handled by RMA on behalf of Amex, I think it should be ok (fingers crossed)! Thanks for all your help

A x

DarkConvict

Bank transfer would be more advisable, with debit card details they can try and take a different payment (although you could then argue it), so a one of bank payment would be better as you control it.

Its not a major risk though.

fermi

Can I just check something?

Achelois wrote: »

They have stated that the as far as they are concerned, the matter will be fully closed and my credit file updated within 6 to 8 weeks as "satisfied".

Was that in the letter as well, or is it something you have been told over the phone?

If it's in the letter/offer, then good.

Achelois_2

fermi wrote: »

Can I just check something?



Was that in the letter as well, or is it something you have been told over the phone?

If it's in the letter/offer, then good.

No that was what RMA told me over the phone....

fermi

Achelois wrote: »

No that was what RMA told me over the phone....

I wouldn't trust what they say over the phone one jot.

If you are concerned about how your credit files will be marked, then you need that in writing as well before you accept any offer.

workinonit

just about to send off some letters with F&F's myself. Did you initiate the process over the phone, or had you written to them prior to the conversation? I'm happy to call people to discuss (subject to confirmation in writing of course), but an unsure whether this is accepted practice.