Template

alliballi

Hi, can anyone give me a link or show me where to get a template to offer creditors a full and final settlement, we been on National Debtline website for Scotland but wont let us access the letters, thanks

GeorgeUK

How do you mean won't let you access the letter?
Do you mean edit the document? Are copying and pasting?

Here's one from the board: http://forums.moneysavingexpert.com/showpost.html?p=14720051&postcount=1

Here's the Nationaldebtline one:

The Loan Company
Company House,
Church Street,
Newtown,
Kent,
R1 7HG

WITHOUT PREJUDICE:

Dear Sir/Madam

Re: 4563210025897412

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 £_____ 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.

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

It's usually advised to say you are getting the funds from a 3rd party and to give a time limit within which a response is required.

Victor_jebb

Thank you George for the template letter. It is very useful.
I wonder whether you could advise me on this matter. I am just paying the minimum amount now for the MBNA card , Will they reject the proposal, and can demand full payment. any advise will,be greatly appreciated.

GeorgeUK

If you are currently maintaining the minimum payments, there is very little chance of them accepting a F&F offer. Possibly 95%, but even that may be at a push.

If you default on the payments, yes, they usually demand full payment. What they get though is another matter.

Can you no longer afford to maintain the minimum payments?
Are there other circumstances that may make them change their minds (unemployment, illness, retiring)?

If you are doing this only because you can make the minimum payments, but not more than this, have you tried looking to see if you can pay less interest on the accounts? You may be able to get a 0% credit card to transfer the balance to or possibly even ask them to reduce the interest themselves so you don't move account.

We need a little more detail before we can advise you properly, but posting up a SOA may also be beneficial.
https://www.makesenseofcards.com/soacalc.html

alliballi

GeorgeUK wrote: »

How do you mean won't let you access the letter?
Do you mean edit the document? Are copying and pasting?

Here's one from the board: http://forums.moneysavingexpert.com/showpost.html?p=14720051&postcount=1

Here's the Nationaldebtline one:


It's usually advised to say you are getting the funds from a 3rd party and to give a time limit within which a response is required.

Many thanks for your reply, sorry being slow in responding. The site just wouldnt open the link to let me view the letter but thats great for the link. Also if you owe £4500 on BOS visa and £900 on CAP1 visa how much is reasonable to offer as full and final settlement??

GeorgeUK

Have you already defaulted on the payments?

If you have, you may be able to offer between 50%-75% if the debt is with the original creditor. If it's with a DCA, you may be able to offer 25%-50%.

If you have not defaulted, then the chances of them accepting a reduced F&F offer are very slim.

alliballi

GeorgeUK wrote: »

Have you already defaulted on the payments?

If you have, you may be able to offer between 50%-75% if the debt is with the original creditor. If it's with a DCA, you may be able to offer 25%-50%.

If you have not defaulted, then the chances of them accepting a reduced F&F offer are very slim.

Hi I think they must have defaulted not 100% sure though, the BOS visa is with Apex and CAP1 with Debitas, so is it better to try the 25-50% offer also live in Scotland so is the template letters ok to send, many thanks

GeorgeUK

You aren't quoting any legislation, so the letter's fine.

I would look at also pointing out how much time it would take for the current payments to amount to the settlement offer too. Sometimes it's better for them to take what's offered now rather than wait 3 years for the same amount.

alliballi

Hi thanks for reply, thats what I am thinking to as we only pay about £60 a month to BOS and £20 a month to CAP1, worth a try they can only say no I suppose, appreciate your help