Full and final settlements - egg, barclaycard and LLoyds

flossieflipflop

Hi,

I only found out that full and final settlements existed yesterday when some people offered advice on my thread on dmp.
Just a brief background - I've been in a dmp for the past 3 years to pay back 3 creditors egg, barclaycard and LLoyds. I should have another 4 years left in plan but desperately want to pay it off sooner and some people suggested Full and final settlements as a possibility.

I'm just wondering if anyone has had any luck with either of these companies and what they accepted. My biggest debt is with LLoyds (overdraft, loan and credit card) and I think this is currently at about £7000 and this one I am unlikely to be able to offer a full and final settlement but both my egg and Barclaycard are currently at about £1500 each and I could possibly offer a settlement to either or both of these.

My question is what do you think is a likely figure they would accept?

Has anyone succeeded in a settlement with these companies and (if not too personal) how much did they accept?

Oh and one final note that may affect this - I have paid on time every month and for the full amount agreed so will they be less likely to accept a settlement if they think I will pay off full debt in another 4 years?

Thanks for any advice/info

DarkConvict

4 years is still a way away so they may accept.

The question is with being on a DMP, not what they will accept but how much money you can get your hands on for a F&F settlement.

Generally people start at 30%, but as these have not been sold. I would try with 40% and attempt to negotiate towards a 50% offer.

Pott5y

I am currently trying to settle with Egg, Barclaycard and Lloyds.

I have been on a DMP for 6 years with payplan and I would take 20 years to pay off my debts at the current rate.

I have offered full and finals to all my creditors for 40%. Egg, Lloyds and B'card have all declined my offer and are waiting for me to go in with a higher offer. yep Right!!!

I have had 2 creditors accept at this offer as well so it is always difficult to to know where they will settle.

Lloyds and B'card can be a bit difficult to deal with and can even be a bit abrupt at times but don't take it personally it is just their way of trying to get you to pay more money.

Good luck with you offers and I hope you get somewhere.

BigCraigJohn

Have you ever done cca requests?
If they either dont have an enforceable agreement or dont have 1 full stop and they know you know they cant enforce the debt then they will be more likely to accept the lower offers.

flossieflipflop

Thanks for the responses.

What's a cca? I'm not sure what that is? - sorry I am a bit naive with some of this.

Pott5y - what kind of increased offer are they looking at for you? I could possibly go up to about 60% as a max but would be borrowing money off my Dad and so want to make sure (as much as possible) it would be accepted before I tell my dad about the dire state of my finances!

Also as there's no way I can offer one to Lloyds would it then be seen as preferential treatment? I think I've read somewhere that you can't do this? Though I may have misunderstood this. Although I would then be able to pay more each month to LLoyds to clear my debt with them.

Thanks again

Useless_with_wonga

CCA means The Consumer Credit Act 1974. Basically and simplistically when you take out credit the creditor and debtor(you) must in law sign up to a legally binding contract relating to the debt.
The creditor has the majority of the responsibilities in relation to this and it covers things like the APR,terms and conditions,amount of payments, etc, etc, etc.
Anyway IF the creditor has not abided by the CCA and can not produce a copy of the CCA that you signed or the CCA they produce does not comply with the points in law that it should do then you can challenge the enforcebility of the credit agreement and therefore the loan.
If the creditor has not complied with the CCA it does NOT mean that the loan does not exist it just means that they can not pursue you for payment of it through any legal means.
In other words you could refuse to pay and they would be unable to do diddly squat about it.
Therefore some folks advocate exploring this route in the hope that the CCA copy does not exist/has been lost or it is in some other way flawed making the whole credit agreement unenforceable and therefore making the creditor extremley likely to accept any offer of Full and Final payment when the alternative is you telling them to go whistle and paying nothing whatsoever.

flossieflipflop

Thanks for the explanation useless with wonga. I'm pretty sure my LLoyds one is all above board as I definately remember signing the loan agreement with them and I still have the agreement and can't see anything that would make that one uneforecable.

However, my egg agreement is a possible one as I saw another thread on here about the wording they used in some of their agreements (approved limit rather than credit limit or something like that). I dug out my egg agreement and although I can't find my copy of the signed bit I have a copy of the terms and conditions which does refer throughout to approved limit. I don't want to wriggle out of the debts completely as I do owe them the money but was thinking I may be able to use this to offer them a full and final settlement of something like £700 (on a £1500 debt). But on the other thread it mentions a court case about this so don't know whether this is actually uneforceable but I suppose it may be worth a try.

Many thanks again for your help

Pott5y

flossieflipflop wrote: »

Thanks for the responses.

Pott5y - what kind of increased offer are they looking at for you? I could possibly go up to about 60% as a max but would be borrowing money off my Dad and so want to make sure (as much as possible) it would be accepted before I tell my dad about the dire state of my finances!

Also as there's no way I can offer one to Lloyds would it then be seen as preferential treatment? I think I've read somewhere that you can't do this? Though I may have misunderstood this. Although I would then be able to pay more each month to LLoyds to clear my debt with them.

Thanks again

Unfortunately they have not given me any idea of what they would accept at this moment. In the response letters they just say they will not accept, but I could call them to discuss further.... Big no, no!! My feeling is they want to see how high I would go. If I get any better ideas in the near future I will keep this post updated.

Apparently if you are doing the full and finals yourself there is no reason why you should not settle with one creditor and not another. A good compromise might be to send out a low offer to all and see what response you get. Then you have treated them all fairly as they have all had the option to accept. Then you could work on one at a time at least that way you could say that the other company came back with an offer to settle etc..

FTW

It may be worth checking the Lloyds agreement by posting it up (any personal details, reference numbers or barcodes should be blocked out though!). If you manage to do this, create a new thread asking the question 'Is this agreement enforceable?'. You'd be surprised how many agreements turn out not to be.

hadleigh47

I ve no joy with Egg or Barclaycard. They ignore you or want 100% settlement it seems.
Others are prepared for 25 or 30% for full and final settlement. Some want 40 or 50%. MBNA will want 30% but partial settlement with rest on file but will not pursue it but lies on file for six years.
Get everything in writing and od not talk to them over the phone. Keep record of all correspondence.
I wrote to Egg recently concerning my agreement with themf for a loan. ( I have DMP ) sent £1 postal order quoted the reference and used a standard template letter quoting CCA 1974.
All they did was to send me a report of payments and completely ignored my orignial request but did not return the £1 postal order.They will miss the 12 day working deadline for replying to my request and it now looks like I will be contacting the Financial Services Ombudsman. They did confirm that I had PPI
Egg are a bunch of charlatans

NorthernLas

The following info is from a post by Gonzo127 ...

ROUGH guide on what companies have been known to accept,

please remember some people get lower amounts other have to pay much more than this,

these things depend on so many variables including what side of the bed the person in the company got out off

anyways rough guide is below

Debt still with original creditor NO default = 90% or more
Debt with original creditor but with a default = 75% or more
Debt with 'in house' debt collectors of the original creditor = 60% or more
Debt with external debt collector however still property of original credit = 40% or more
Debt owned(purchased) by external debt collectors = 25% or more