Help with settlement offers

Emme

Hi all,

I'm new to this board so forgive if wrong place etc.

I have recently retired due to ill heath and have a lump sum to pay off my debts with. I sent a template letter with my details from the national debt advice line. The letters had an offer for a full and final settlement but the companies are writing back offering partial settlements??
I don't know what to do to get them to make the offers full and final.
Please help me from this eternal nightmare!!

Emme

DarkConvict

So long as they are going to set the balance to nil, and neither they nor a 3rd part will chase the remainder as the debt is consider settled with no amount owing you should be okay.

This is because Partial settlements can be meant to ways.
1. Way one you pay them some money and they sell on the remainder of the debt (totally pointless) this is what you must watch out for
2. Debt is considered paid with none owing, but credit report is updated to show partial settlement and balance at £0 (acceptable but not as good as settled)

Emme

Thanks Darkconvict.
What worries me is the letter back doesnt say it will not sell on the debt. Should I wrote to them again with a request for this info to be included? Also the letter refers to a telephone conversation which this amount was agreed that never happened!

:huh:

Tixy

You need them to accept that the payment is in full & final settlement and they will not sell the debt on. That is the really cruical bit, its not uncommon for them not to give a proper deal first time. so write back in reponse re-iterating what you want from them.

Some people are happy to agree that the credit file is only shown as partially settled but you do need wording full & final on a letter to you at least.

That said some creditors just aren't receptive to full & finals. Have you been making normal payments up until you retired recently? if so and some don't accept after the second letter you might need to pay token payments for a few months before trying a F&F again.

Emme

Hi Tixy, I have been making payments but due to now being on a low pension I won't be able to pay nearly as much as before. I'll write to them again asking for them to be specific on the required details. EG full and final with amended credit report and no resale of debt. Otherwise will need to do a income and expenditure for the new pension as need bulk of pay out to buy a home as can't afford to rent.

Deep_In_Debt

You need to say in your letter that neither they, nor any associate or 3rd party will chase you for the remainder and that you are released from any further liability..

What I did was to write and say that this money is for a limited time only and if they choose not to accept, you will offer it to another creditor who will accept it and on your terms - you might find they bite your arm off for it!