Couple of Questions about Full and Finals

yellowpinky

Hello everyone,

I'm on a DMP with Payplan and I'm at the point where I can make a full and final offer to a couple of my creditors to clear them. I asked Payplan if I could do this and they said it was OK as long as I kept them in the picture. I've got two middle sized creditors I was hoping to clear - Cabot, who I think bought my Egg card account outright, and Gothia, who have taken over my Post Office card account and I think are still acting on their behalf rather than owning the whole debt. I've got up to date balances from them and I was going to use the NDL template letter.

So, a couple of questions - after reading around I'm thinking of starting in at 40% offers? Does this sound reasonable? I have enough to pay one of the debts off in full but if I can clear both it would be pretty good.

Secondly, do I approach both or one at a time?

Thirdly, how does the actual payment work? I've read about third party cheques but there's nobody I can ask to do that for me. Would a banker's draft be an option (I don't have a cheque book)?

Any advice much appreciated, I'm getting nervous about the whole thing!

Many thanks, YP

SusieT

From reading other posts about f&f' offers I would be starting at a lower percentage as you can always increase the offer but cannot reduce it!
If the debt has been sold to a debt collector and is going to take a long time for you to clear it they will be more likely to accept than one thats going to be completely paid in a year or so, they will have paid a low percentage of the amount so it seems that something over 20% is likely to be profit for them.

Hope you get the offer accepted

yellowpinky

Thanks very much, SusieT I think I'm going to go in with 25-30% and see how I get on.

What payment methods are best to use (if it goes to plan!)?

GeorgeUK

Payment does not need to come from a 3rd party - alot of people say they are getting the money from a 3rd party though so that the creditor does not think you have the money already and are just not making larger monthly payments.

Remember to get written confirmation that they are agreeing to a full and fina (not partial/short) settlement and that neither they or any other party will pursue you for the remainder - that you are absolved from any further liability.

Also, if it is a joint debt, the agreement should be from both of you, not just one of you or they may pursue the other party.

yellowpinky

GeorgeUK, thanks for your advice. So should I adjust the NDL template letter to say it's coming from a relative, and is available to me for a limited period?

GeorgeUK

That's what i'd do - just make sure that whatever they send back is agreeing to those points though.

yellowpinky

Thanks for that, GeorgeUK . I'll keep you posted as to how I get on.

yellowpinky

Hi everyone, I'm going to add this to the F & F template letter, does it sound ok?

"The money is being made available by a family member for a limited time for me to clear this debt, so I would appreciate a reply by *xx date*."

Also my annual review with Payplan has come up. This is my first one and I understand new offers will be sent out to each of my creditors after my budget has been looked and tweaked. How would this affect things, I mean, will it look odd that Payplan are sending out a new repayment offer to a creditor while I'm writing with my Full and Final offer round about the same time? Sorry to have so many questions!

GeorgeUK

I don't think there is much you can do about the Payplan offer. If there is a chance of them accepting the F&F though, i would just press ahead with it. That extra part you have put is fine - got my fingers crossed for you.

yellowpinky

Thanks for the feedback, GeorgeUK, I appreciate that. And another question, I just want to be clear about how I can pay if my offer's accepted (sorry to be obsessing about this) - my bank will charge me twenty pounds for a bankers draft so is a bank transfer usually acceptable? What's the norm apart from a cheque and who decides on the payment method, me or the creditor? Re: the review, it's come a month early and I could have done without it at the moment, it just seems like an added complication!

GeorgeUK

You decide on a payment method.

As long as you get a letter agreeing that it is F&F and that you will nto be liable for anything else, you can send your own cheque - the 3rd party could have transferred the funds to your account. If you don't have a cheque book, you could do a payment to their account.