Full and final settlements

cognitiveghost

Hi all,

Just need a bit of advice re full and final settlements. My husband was sent to prison for 5 years in May, and I'm left trying to deal with his debts that I didn't know about. They are all in his name and unsecured. My family have said they will give a lump sum to clear them and I have offered all full and final settlements of 55%. 2 of the credit cards have accepted, Barclaycard are still considering, but the AA (HBOS) have declined. I was surprised as they were requesting confirmation of his prison sentence etc, which I thought meant they might be able to arrange something. The AA one was a loan rather than a credit card. They have said they never accept full and final settlements, it's company policy. I cannot get this money to service the debt monthly, and all my income is tied up with paying the mortgage and normal bils on my own. The AA are now adding monthly admin charges. I phoned them this morning in tears asking for help, and it seems the best I can do is just leave it for 5 years until my husband comes out and then the debt collectors which they sell the debt to will 'pursue him'.

My questions are:
- Do you think that it is worth persisting with the f&f offer? I know they are under no obligation to accept it.

- The other option is just to leave it until my husband comes out. Can they keep adding interest and a £25 charge every month until this happens?

- Third option is for me to get a second job, and save up enough to add to the third party lump sum and pay it off after Christmas. Again, can they just keep adding interest and charges till then?

- Also, in terms of them chasing, they said they cannot suspend the letters and phone calls chasing my husband. Thing is I'm really distraught about what's happened, and every time I get a letter/call it sets me off again. They said they cannot do anything about this. Is there anything I can do re this?

Sorry for long post!

bottleofred

Hi,

Sorry to hear about your problems. They don't have to accept your offer, but given the circumstances it seems strange that they are behaving the way they are. However, they will add interest and charges on for a while before selling the debt on to a debt collection company at which point the interest etc should eventually stop (although this may depend on the debt collector as some do continue to add charges).

Regarding the phone calls, when they call again tell them you only want to communicate in writing and post the letter below. Someone with more knowledge should be along soon to advise further. There are other letters about refusing doorstep collections etc, but don't worry about them at the moment.

Good Luck

Dear Sirs,

Account No: XXXXXXXX

I am writing in relation to the quantity and frequency of telephone calls that I have received from your company, which I deem to be personally harassing. I have verbally requested that these stop, but I am still receiving calls and I now require all further correspondence from your company to be made in writing only. I am of the view that your continued harassment of me by telephone puts you in breach of Section 40 of the Administration of Justice Act 1970, and the Protection from Harassment Act 1997.

If you continue to harass me by telephone, you will also be in breach of the Communications Act (2003) s.127 and I will report you to OFCOM, Trading Standards and The Office of Fair Trading, meaning that you will be liable to a substantial fine. Be advised that any further telephone calls from your company may be recorded and used in evidence and I expect this harassment to cease immediately.

Yours faithfully

WRINKLES

You are not responsible for your husbands debts you should not pay them

WRINKLES

If they discuss your husbands debts with you ,this is a criminal offence under the data protection act,send them a letter telling them so , if they contact you again post back here

climbintheladderouttadebt

Hi, didn't want to read and run! Some very good advice from above posters! Wrinkles is spot on. Please post back if you need any further advice on letter writing etc.

cognitiveghost

Thanks all. I have a letter of authority allowing me to deal with the creditors. We do own a property jointly together. I've been told that HBOS can issue a CCJ, and then a charging order where they can apply for a charging order on the property as my husband has joint equity (not a whole lot though). It's an unsecured loan though so I'm a bit confused.