Full and Final Settlement Advice

nearlyfinished

Hi

I'm a newcomer and have been avidly reading the valuable advice on the site.

My situation is this, I have been paying a nominal amount on my debts (6 accounts) through cccs for about 4 years. Happily, in about a month I am due to recieve a lump sum payment which will cover about 50% of the balances due :T. I intend to offer full and final settlements to all my creditors when I receive this payment and try to make this money go as far as possible towards clearing my debt.

Following advice from this site I intend to go in low at 20% to begin with. However only one of my accounts has been transferred to a DCA - Cahoot loan to Debt Managers Ltd - so I do not expect such low offers to be accepted!

What I would like to know is should I send off CCA requests for all the accounts now or wait and make F&F offers first?

Many thanks
NearlyFinished:)

Pott5y

Hello nearly finished.

Glad to hear you will soon have the money to try for some full and final offers.

You are correct that you may find that 20% is too low for some creditors but it is worth starting there and working upwards. You may find that some will bite and that will leave you a bit extra to offer the stubborn ones.

If you are declined in the first instance it is worth offering the same for a couple of months and not be too eager to raise your offer. I have had a couple that declined initially and are now thinking about accepting. I started at 40%.

I wrote to all my creditors at once offering them a pro rata payment of the oustanding balances and included a spreadsheet showing this. Some prefer to write to one at a time and say if refused the money will be offered to another creditor. Ithink that is personal choice!!

Make sure that all offers are in writing and use the NDL template and include the text virtually as written as it is there to protect you. Do not send any money until all points are confirmed. You can always post letters on here for confirmation.

I would also not let your creditors know that you have the money , but a member of you family is loaning it to you to clear your debts on the understanding that it can only be used for F&Fs. They may just expect you to use it as a large payment to them to ofset you outstanding balance otherwise.

As for the cca before F&Fs, unfortunately I can not advise on that as I am not up to speed on that issue.

Anyway good luck.

hadleigh47

Some will offer full and final settlement at around 25% or 30%
MBNA will ofer partial settlement of 30% but it will l ie on file or your credit record for six years but they wont pursue the matter
Do everything in writing and not over the phone
Some will want 90% or 100%
It is a real mixed bag others will not reply to you

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

LuckyBiscuit

I was wondering how do u know if the debt is with a external debt collector but still the property of original credit???