Error in Full and Final Settlement offer letter

sticklebrick

Hi Everyone,

First post - be gentle!

I recently wrote to a creditor offering an amount of £12,000 to settle a £26,000 debt. They declined this in writing so I phoned and negotiated a full and final settlement of £16,000.

I explained I would only make payment if they put the accepted offer in writing. Today I received the letter contained a typo which started with the words “without prejudice” and went on to tell me if I make a payment of £6,000 the debt will be fully satisfied.


Do I transfer the £6,000 pounds (or send a cheque?) and keep quiet? I am certain they will come back demanding the £10,000. Clearly morally I should pay but if I didn’t would they have any right to claim this money through the courts?

Thanks in advance
sticklebrick

Numpty_Monkey

I'm not a legal eagle beable,
but my understanding (which is probably wrong)
is that a letter with "Without Prejudice" is inadmissible in court, basically it don't excist
so chances are they would try to come back:(

Send them the National debt line template letter,http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6
offering the same ammount they offered in that letter(enclose a copy) and see what happens.;)

Well done for doing it in writing:T

tazzy2010_2

Welcome :j

I don't know much about this but if I had the money to pay the 16,000 I would pay the 6,000 by transfer and wait. If they accept great and if they start to chase you for the 10,000 then just pay it asap. That way you won't lose out on anything and you wouldn't have to worry about being taken to court.

Morally - I wouldn't really worry. Banks don't worry about us and interest/late payment charges etc!

Hope this helps a little

Tazzy

sticklebrick

Thanks guys. Great advice - think I'm going to pay the £6,000 and see what happens.

DarkConvict

I would not pay, as they say the letter cannot be used in court. So if they go and chase you for it, you cant go to court with the letter saying it has been paid.

You need written confirmation they will not pursue the remainder themselves or via a 3rd party, as the debt is to be considered satisfied in full.

sp1987

A without prejudice letter cannot be used in court proceedings. They are sending you an offer you cannot rely on in court when they claim their full amount back.

So, if you pay £6000, they will carry on chasing you and you cannot submit the letter in court proceedings.

Don't be a dingbat and give them any money until they have sent a full and final letter, not a without prejudice letter.

I bet they reduced the amount to try and get you to pay it quickly too.