Full and final settlement

Hi,
i owe £8k to a DCA and my family have offered to give £3k to offer as a single payment in "full and final" settlement. Is this figure acceptable in the world of DCA's? What is the average figure if there is such a thing. This debt has been passed on twice so the DCA probably bought this for no more than £1000. Please advice as i'd like to try and clear this so i can break free. Any advice would be great.
Thanks in advance.

Comments

  • DarkConvict
    DarkConvict Posts: 6,338
    Combo Breaker First Post
    Forumite
    Settlement figures are between 20-70% for a DCA, it depends on how much they brought it for, how much you have paid so far etc. Start at 20% (£1600), and if they refuse increase it by 5% (£2000) or 10% (£2400).

    Here is an example letter
    Mr A N Other (your address)
    1 High Street,
    Newtown,
    Kent
    R21 4RH

    February 28, 2010 (date you send letter)

    The Loan Company (their address)
    Company House,
    Church Street,
    Newtown,
    Kent,
    R1 7HG

    WITHOUT PREJUDICE:

    Dear Sir/Madam

    Re: 4563210025897412(your reference number)

    We write with reference to the money which you are claiming on the above account.
    We can confirm that we are unable to offer to pay the money which we owe in full.
    However, I can raise £_____(your amount here) and I want to offer this 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.

    The funds are been made available from a relative so this offer is only open until (add date here), if I do not receive a reply by this date the funds will be offered to my other creditors.

    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
    Although no trees were harmed during the creation of this post, a large number of electrons were greatly inconvenienced.

    There are two ways of constructing a software design: One way is to make it so simple that there are obviously no deficiencies, and the other way is to make it so complicated that there are no obvious deficiencies
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