Full and Final Settlement offered what should i do?

tigtig

Hi

I have a small credit card debt that has gone to 1st credit debt collectors, they have been hassling me to pay something towards the debt but have not been able to until now.

A week ago the sent me a letter stating that if I don't pay anything then they would go to court blah blah.

But today I got a letter saying FULL AND FINAL SETTLEMENT OFFER and that I have 14 days to take the offer up, they dont mention what the offer is and the debt is for £371.

Can anyone tell me the best way to play this one when I ring them up, or has anyone else had the same type of thing happen to them .

winkle1

can you afford to pay it? if you can, i would pay it as it will be less than the outstanding amount.

sanfrancisco

I doubt that THEY would offer you a reduced amount. I don't think this is how they do it. I am willing to be corrected though. I would ring them up and offer 50%, and say you can pay them there and then or if not, you will only be able to pay them £1 a month for infinity.

BUT, if you can pay it all I would. Job done. Get on with life.

rog2

If you genuinely can not afford to pay the full amount, then make them an offer of what you can afford, in Full and Final Settlement.
It seems strange that they are taking you to court for this amount, but if you have not yet received the summons there is still time to make an offer, even of instalments - If it goes to court, this will go in your favour even if cc company have refused.

keza123_2

Hi,

I've had dealing with 1st credit before and they do actually offer lower settlements for payment in full. If you can afford a lower offer go for it. Unfortuantely my reduced offer was still over £1,000 so I couldn't take it up.

good luck

Keza

fatbelly

Get the exact agreed F & F deal confirmed in writing - also that your debt will be marked as settled with credit reference agencies.

First credit are notorious for trying to do everything verbally and you really need written evidence here.

tigtig

Thanks everyone thats good info

terriblesaver

Call and offer a lower amount - give yourself a limit as to what you can pay or tell them that someone has offered to pay it for you - once agreed ask for it in wiriting with a pre defined time scale and ensure that they will mark your credit file as SATISFIED IN FULL before you pay a penny.

Good luck

xx

shayshay

How does it work with F&F settlements? Am I right in thinking if you pay your full debt off that it is cleared on your credit report where as if you do a F&F that it will show to any potential lenders that you did not pay the full amount and therefore harm your chances of getting further credit?

sportbeth

The reason why they have offered you a reduced settlement is probably because they bought the debt for 10p in the £1 and they're making money even if they halve the debt.

For that reason alone you should check that they are working for their money AND that they are entitled to collect this debt. In some instances they are not, you might pay up and find another bin-rummaging debt scavenger chasing you again in a week.

I dealt with 1st Credit and they were a bunch of muppets. Just because they are threatening you with court doesn't mean they can legally if they don't have the right documentation, and if you can't afford to pay them then don't take their threats.


Send them the following:-

Copy of letter to use if debt has been purchased by a debt-buyer. Enclose a £1 postal order in payment of the statutory fee and send by Recorded Delivery. They have 12 (working) days to respond. If they don't supply it within 30 days, they've committed a criminal offence. Report them to your local Trading Standards office.


Quote
I do not acknowledge ANY debt to your company. I require you to supply the following documentation before I will correspond further on this matter.

1. You must supply me with a true copy of the alleged agreement you refer to. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.77 (1) for fixed sum credit) - your obligation also extends to providing a statement of account. I enclose a £1 postal order in payment of the statutory fee, PO Serial Number xxxxx.

2. A signed true copy of the deed of assignment of the above referenced agreement that you allege exists.

3. You are notified that you are obliged to supply these documents, whether you are the original creditor or not under S189 of the CCA 1974.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the CCA and therefore is a complete defence to any court claim that is issued.

Take note at this stage, that any legal action you may contemplate will be both vigorously defended and contested.

Unquote.

Also consider reading some of the following forum. Much as MSE is fantastic and I support it wholeheartedly, this site helped me immensely too.

http://www.debthelpuk.co.uk

sportbeth

shayshay wrote:

How does it work with F&F settlements? Am I right in thinking if you pay your full debt off that it is cleared on your credit report where as if you do a F&F that it will show to any potential lenders that you did not pay the full amount and therefore harm your chances of getting further credit?

If you pay in full and final you must get it in writing both the offer and the acceptance. (reason being that at the very least you will have proof of the offer and proof of payment if they don't write to confirm payment and acceptance)

Legally Full and final means just that. The balance is completely marked as satisfied on your credit report. If it isn't (as in with my case with capital one) you can write to the information commissioner to ensure they are told off formally and the info is put straight. Hence the proof that you will need.

Some lenders try and cheekily leave a balance oustanding on your credit report. This is wrong