Full and final settlements - egg, barclaycard and LLoyds

InDeepDebt

hadleigh47 wrote: »

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

Is partial settlement a bad thing or not? I keep on seeing on threads where people say to demand Full and Final. However, surely even that will stay on your credit file for six years - and do potential future creditors just see that you've got a useless credit record and know that with some companies a full and final could likely be a payment of 50%?

I've just fired off a letter do MBNA. They offered me a partial settlement a few weeks ago over the phone - I've written back to them with a lower offer (about two thirds of their offer). However, they did say that they would only mark the file as a partial settlement and wouldn't pursue me further.

I have a few defaults with other creditors, btw.

Jim

Pott5y

I think that partial settlement is ok. I always ask for fully satisfied and I have to say that the 2 that I have settled with have agreed to this.

I think the most important part is that they nor anyone else will pursue the remaining money and that you are released from liability for the debt.

I must admit I have written to MBNA (1 month ago) offering 40% and they have not even responded to my letter. At least everyone else had the courtesy to reply (and that incudes Lloyds!!)

flossieflipflop

Hi,

Just a quick update from me; I have sent a letter to Barclaycard offering a F and F of £800 which is 40%. I'm not holding my breath though. If they refuse I will offer it to egg (would also be 40% to them) and if they refuse I will increase to 50% but no higher (can't afford any higher!)

I really hope they accept as going on maternity leave at end of Dec and would be fab if I could have cleared two of my debts. I would just be left with LLoyds then but could pay them more which would leave me debt free in 2 years!!

I hope the debt fairies are smiling on me this month!

dice

Hi
My partner has a Lloyds CC debt of just over £9,000 and has been for the last 4 years in an agreement with them to just pay £5.00 per month. We are both just keeping our heads above water but last week out of the blue Lloyds contacted him to say the agreement has come to an end and they require 2% of the amount if not they will take it out of our bank account as we are with Lloyds. My partner has written a letter offering the 3,000 as a full and final settlement ( he is going to ask his Dad but wont be able to borrow more than 5,000 as we know his Dad hasnt got it to lend )
The letter was sent 1s class recorded last Saturday. We havent had a reply yet, would it be ok to ring them today do you think? The stress of waiting is making him ill.

Also what are the chances of them accepting? Anyone had any experiences?

Thanks

BigCraigJohn

Just tell them nothing has changed. Continue to pay the £5. If they take you to court the judge will only make you pay the same anyway. Don't worry about it, lloyds are not the most pleasant if you owe them.

BigCraigJohn

Unless you can do a full and final. Do not ring them, keep everything written.

Pott5y

Dice,

Always do all correspondance in writing. If you call they will only try and extract even more from you.

I recently offered lloyds a full and final (40%) and it took them nearly 2 weeks to reply and it eventually came from BLS collections their in-house DCA. Unfortunately for me they declined.

Just be patient. It really is not worth getting all upset about.

It might also be worth setting up a seperate basic bank account asap with another bank who is not linked to LLoyds or HBOS and get all payments set up to that account. LLoyds will try and off-set their debt against your account with them and you may find they do just take the money.

Please do not get too upset they are just trying to scare you into paying. Also make sure you keep sending the £5.00 payment until the full and final is accepted as you will probably find that they will realise you can't afford anymore and put you back on your repayment plan.

Also make sure that before any f & f payment is made that they confirm in writing that that it is full and final, you will be released from all liability and that LLoyds nor any other company will pursue the debt further and that they will mark your credit file as satisfied. These points are very important otherwise they make come back for the remainder at a later date. Keep all correspondance for 6 years.

Good luck you will get it sorted. We all do:o

dice

Thanks for your replies - they will probably turn us down on £3,000 on a £9,000 debt but we could probably manage £5,000 with the help of his Dad but it doesnt look as if many people have had any luck with lloyds,although someone I know had a letter off them Xmas time asking if she wanted to settle (it was half her debt).
Unfortunately Ive just tracked Royal Mail as we paid 1st class recorded and it looks as if our letter has been lost in the system so we will have to send another one today. (Royal Mail were most unhelpful I may add!):mad:

Lyndzzz

hiya
i was in a similar situation, on a dmp for about 2 years then borrowed 10 grand from mum in law and offer settlement figures to all creditiors

lloyds accepted 1600 on a loan of 2400
nationwide agreed 850 on a cc of 1400
nationwide agreed 350 on od of 500
egg declined all offers and have said they will only accept 4500 on a debt of 6000 (75% ish) but i only have 3000 left so thats sitting in my bank waiting for them to accept but they are being !!!!!!s and have today told me that they will be setting their solicitors on me!!

hth

Lynds

barbiedoll

Dice: you must open a different bank account straight away or else Lloyds will take the money from your current account and they may take the full repayment and leave you with insufficient money to pay your priority bills. People on here recommend the Co-op cashminder basic account, you won't need a credit check and you will still be able to use standing orders and direct debits as usual. You won't get an overdraft facility or any credit on the account but I'm assuming that as you're in debt anyway, you don't want credit facilities? Barclays also do a good basic account, but whatever bank you choose make sure they are not connected to Lloyds and do this as soon as you can, Lloyds will have no qualms about leaving you skint if they want their money back!