any luck with full and final settlements??

amber81

Just wondered if anyone had had any luck withe offering F+F settlements?

I owe about 16K to about 10 different lenders, all overdrafts and credit cards.

I have managed to get a new job that pays a lot better than my last one and my parents have said they can lend me some cash to try and rid my debts and pay them off instead - they say the interest rate will be more favourable :rotfl:!!!

I am unsure of what to offer? Should you go in really low and do you try to negotiate?

Any tips would be greatly recieved

GeorgeUK

There are some templates on the board that you should use or the ones on the nationaldebtline website.

Make sure you are not agreeing to a partial of short settlement. If the debt is with the original creditor, they may accept between 50%-75% and a DCA may accept 25%-50%.

You should also take into account how much you are currently paying them each month - how long would they need to wait before they got back say 50% of the amount owed if you were paying at the current rate? If it's a few years then this may put you in a stronger position.

DarkConvict

gonzo127 wrote: »

well if you have a lump sum to pay off your debts here is a ROUGH guide on what companies have been known to accept,

please remember some people get lower amounts other have to pay much more than this,

these things depend on so many variables including what side of the bed the person in the company got out off

anyways rough guide is below

Debt still with original creditor NO default = 90% or more
Debt with original creditor but with a default = 75% or more
Debt with 'in house' debt collectors of the original creditor = 60% or more
Debt with external debt collector however still property of original credit = 40% or more
Debt owned(purchased) by external debt collectors = 25% or more

if you dont your best bet is to one post up a statement of affairs so we can look at your income and outgoings and try and advise, and the next is to speak to one of the debt charities such as CCCS, CAB, national debt helpline

That should give you a rought guide.

Always write into F&F offers money is been made available from a family member, and you are giving them 14 days to send a reply otherwise you will offer it to another creditor.

NDL Guidelines - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

gonzo127

thanks DC that saves me posting it up

amber81

thank you for the info, i think most of the debts have been passed onto DCA altho the banks still own the debts as far as I can tell. At the moment i am paying each one of them £1 a month so it would take a considerably long time for them to recoup all of the money!!!!

Thanks again

amber81

ok thanks so far for the support.

some news,

I sent my offers off, offered everyone 20% of what I owe. I know thats really low but reckoned I would have to barter.

So far only M&S have accepted but this is what they have said
"May I advise you that the terms and conditions of the credit agreement will not have been fulfilled, as not all the money owed has been fully repaid., this will be reflected on our credit file held at the credit reference agencies.

The current balance will be recorded as a default on your file atthe Credit Reference Agencies. Once the payment is received the defualt will show satidfied but an indicator will show that we have agreed to accept a smaller sum on the account in settlement. The information is held with the credit reference agencies for a period of 6 years and may affect your ability to get credit in the future."


Is this correct?

DarkConvict

Has a default already been recorded by M&S?

Sounds like once you have paid they will mark the default as settled to show it has been paid. And the default will last 6 years from the date it was placed.
If M&S have not placed a default, and has been over 6 months since you start to make below min payments it maybe worth reminding them that under OFT rules for the fairness of defaults it is to late to place a default on the account as it would have the affect of exceeding 6 years since the account fell into been defaulted.

The important wording you want is that M&S will not persue you, nor a third party, for the remainder of the debt as it is considered settled in full. Get that in writing and keep it for atleast 6 years.

amber81

thanks,

all they say is that they are prepared to accept my offer as final payment on the above account.

do you think this is sufficient?

GeorgeUK

Can you type out exactly what is said in the letter?

amber81

yes i have defaulted on the account.



here is the letter in full, what do you think?


“we refer to the above named account

we are prepared to accept you offer f £***.** as final payment on the above account. Paymnet should be made within 14 days of this letter.

Please call us to make a debit card payment over the phone or alternitavly you may pay by cheque. Please make any cheque payable to m&S money and note the account number on the reverse.

May I advise you that the terms and conditions of the credit agreement will not have been fulfilled, as not all the money owed has been fully repaid., this will be reflected on our credit file held at the credit reference agencies.

The current balance will be recorded as a default on your file at the Credit Reference Agencies. Once the payment is received the default will show satisfied but an indicator will show that we have agreed to accept a smaller sum on the account in settlement. The information is held with the credit reference agencies for a period of 6 years and may affect your ability to get credit in the future.

If you have not already done so, please destroy all of the cards issued on this account. If you, or any additional cardholder have any recurring subscriptions that take regular payments from your account, you must get in touch with the company concerned to cancel your subscription, or to make alternative arrangements for payment. Payments will continue to be debited until you do so and you will remain responsible for these. If you have card safe cover on your account you will need to contact card safe direct to cancel the policy or to make alternative arrangements.

Failure to comply with any of the above or any further use of your card, will result in the written off balance being reapplied to your account and you will be responsible for the payment in full.

GeorgeUK

I would thank them for their letter but ask them to confirm that this "final payment" will be considered a full and final settlement in line with nationaldebtline guidance and that:
neither they nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that you will be released for any liability.

I would like more confirmation other than they see this as you making a final payment.

Also what they put at the end of the letter - make sure there is nothing going to be added to that card that may reactivate the debt.