Full & Final Offers to banks and DCAs

wobblymummy

Hi

Can anyone give me any advice on F & F offers to DCAs and or banks ?

We have quite a few debts which I believe we could renegotiate to be paid off with a bit of effort

What do I offer ? how much % of the debt should I be offering ? We get mailings from one of our creditors a few times a year offering us a low payoff if we can pay off the debt entirely which would be great.

Which agencies are the most reasonable and what are they likely to accept ?

We have accounts with First Credit and Moorcroft agencies.

We have debts with Halifax (overdraft), Next directory and Lloyds credit card.

Also if they do accept a lower F & F how do you know they will mark this as settled on your credit file ?

Are there any template letters for doing this ?

Many thanks

Tixy

Hi - a factsheet and template letter here - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
read the factsheet it tells you about how to make sure it is legally binding on them.

I would amend the template letter to give them a deadline to accept the offer (give a date 2-3weeks from when you send it). When your debts are still held by the original creditors they often won't accept any F&F offer, or it will only be a small amount off.

For debt that are with external debt collectors then they might well accept F&F offers -what they will accept will depend on how much the debt is for and how much you are paying, so how long it will take for them to get the whole balance from you. You could start at say 20-25% but be prepared you might need to negotiate and go a little higher, or be prepared to wait another 6months and then try again.
It really depends on