Full and final settlement offers: What are they doing??

Neiffer

Hi all
I m new to this forum, so hi!
I have just (yesterday) spoken to all 4 of my creditors and made a full and final settlement offer on my accounts at about 40% of the balance. All of them tried to barter to 60% or 50% but I refused, and all of them have said they need to speak to their 'client' and see whether they will accept and will be back in touch. What exactly does that mean?? Are they just playing games to see if I ll crack and offer more money or are they genuinely getting it checked by someone else??
What do I do if they say no?? I have no more money to offer!
Any advice/experience would be most appreciated. I have made offers to :
Rockwell, DLC, Apex and Link Financial.
DLC have told me they wont even process request until they know the other 3 are taking me up on it.
Neiffer

Numpty_Monkey

Hi
If you make a F&F offer do it writing,
use the template leter from here (Section 5) if England and Wales
http://www.nationaldebtline.co.uk/england_wales/debt_advice.php
and make sure you get any agreement aswell

I think you may have slipped up on letting each of them know you were offering settlements to everyone, not to worry:o

If they turn it down, keep paying what you are paying now, and in a few months offer again but this time at slightly less ,

Just make sure you do everything in writing
a verbal agreement is worth the paper its written on:cool:, nothing

bargainbetty

They will always try to get more money out of you - that is their job. Tell them you have limited funds and that if they do not accept it you will make an offer to a different creditor.

May I recommend that you put the offer in writing, stipulating the terms and give them 10 days to reply in wirting, accepting all the terms or nothing? Always put things in writing with DCAs.

Then again, if they did offer 50% on a full and final settlement, with a credit file marked 'satisfied' and an agreement that no further company would pursue the debt, is it not worth the extra to settle it early? They aren't under an obligation to let you do that, and 50% off is still half off!!

And, you will be debt free that much quicker..... just get it in writing that it is F&F!

Good luck x
Claire

scouselad1974

Hi

I sent my first ever Full & Final offer to a creditor of mine with a failry low balance last month, and it was around 3 weeks before I heard anything from them, I did say that they had 28 days to reply on my letter though.

Unfortunatley they did not accept as they said that the offer was to low, It was a low offer but I thought I would be cheeky as all they could do was refuse, so now I will continue to make my low monthly repayment and at some point go back in with another offer, or try a different creditor.

I was very cheeky and started at 25%

Neiffer

Cheers for the replies. I ve just had Rockwell call me back and confirm they ll accept, I ve asked them to put settlement agreement in writing before i send them any money. is that the right thing to do?
I thought the best way to negotiate would be verbal, whoopsie. Fingers crossed they dont let me naivety get in the way!
I cant borrow any more than 5000 its the max. I ve approached it with creditors as an all or nothing bid you see, and told them I ll be stopping my min payments as I can no longer afford them ( I m about to lose my job and not sure what income I ll for a while), I ve had thesee debts for 4/5 years now so I m hoping they ll take it.
My plan is (if they all accept) to get the settlement agreement in writing from them (including the terms full and final, and amending my CR to show satisfied) and then to send them a cheque via a solicitor. Is there anything else I should do to make sure I m covered?????/
Neiffer

Tixy

Ideally the written notice from them needs to say in full & final settlement and that neither they nor anyone else will chase you futher for the debt.

If you find they don't send anything out in writing then just start again with sending the offers in writing (as per the template letter in Numpty's link).

And finally (and its obvious but still not everyone does) make sure you keep copies of the letters from them and proof you sent the cheque (even if that proof is a photocopy of the cheque, the recorded delivery slip and a copy of the bank statement showing that cheque has been cashed). You need to keep all that safe for a minimum of 6years.

Good luck.

Neiffer

Thanks for the advice. I ll definitely keep copies of everything, I dont want this revisiting me if I actually manage to sort it out.
I ve just had the most infuriating phone conversation with Link financial whos manager is looking at settlement figure, but apparently I m not allowed to talk to her!!!! Grrrr. They ve told me it will take days for her to make a decision (which apparently will be NO the rude man on the phone said), although other creditors seem capable of pulling themselves together in a day or 2. I wish this was all so much easier to sort out!!!!
Neiffer

Tixy

Yes it can be frustrating and slow - but it will be worth it if you can clear at less than 50% of your total debts. Stick with it!

If any won't agree then wait until you are unemployed, start making token payments of only £1 per month (with a letter explaining you are on benefits or whatever), then make the offer again in a couple of months - you might find them much more willing to accept if they think they'll only be getting a quid a month!

Neiffer

Thats true, I m debating paying a little more to make it to 50% if they start negotiating.
Just been on phone to 2 and they re still awaiting a response from their 'client', does anyone know what they mean by that? I thought the debt companies bought the debt from original client e.g. Egg and that was it. Are they saying this to me to make it look like they re considering my offer in order to barter with me or something? Or are they genuninely passing it on to someone else? 3 companies have told me thats what they re waiting for......

Tixy

Often debts are bought outright from the original creditor, however sometimes/occasionally the DCA are just acting on behalf of the creditor.

The only other possibility I can think of is that they could have decided to check with the original creditor whether they have all the required paperwork in place - eg an enforceable credit agreemnt. If there isn't one or if any of the paperwork is not in order they would be more likely to accept your offer. (I don't know whether they would check this with the orig creditor at this stage but cant think of what else it could be).

Neiffer

Cheers, without sounding thick, whats an enforcable credit agreement??!!

I ve had these debts for about 4/5 years now with the same DMCs so assuming that they re not handling them for anyone else.....who knows tho!