F&F on DMP

alona1

Hiya,

I want to offer 2 of my lower owing creditors an F&F. Can I do this without going through PayPlan?

I owe them both approx £800, is it reasonable to offer them £500?

Also, is there a template letter to do this?

Thanks

Pott5y

Alona,

It is ok to do this without telling Payplan I am doing exactly that. I would say that the money has come from a family member so that they do not want higher payments.

This is the template I used for mine

[FONT=&quot]To: _____________________
________________________[/FONT]

[FONT=&quot]Without Prejudice[/FONT]

[FONT=&quot]Dear Sir/Madam [/FONT]

[FONT=&quot]Account No: [/FONT]

[FONT=&quot]I write with reference to the outstanding debt on the above account.[/FONT]

[FONT=&quot]I can confirm that I am unable to offer to pay the money which I owe in full. As your company will be well aware, I have been making regular payments via a Payplan Debt Management Plan for the last 6 years. Unfortunately, I cannot see my circumstances changing dramatically in the foreseeable future, therefore it is likely it will take almost 20 years to clear the outstanding amount on this account. [/FONT]

[FONT=&quot]However, some of my family members are offering to collaborate to raise £ and I want to offer this as an ex-gratia payment in full and final settlement of the account. [/FONT]

[FONT=&quot]This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.[/FONT]

[FONT=&quot]I also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as having been “satisfied” in full and the account closed.[/FONT]

[FONT=&quot]As advised by Payplan no lump sum will be available until I have received written confirmation of all points in the above offer.[/FONT]

[FONT=&quot]Payment can be made within 1 calendar month of receiving your written agreement of this offer. Also if this offer is accepted, please confirm your preferred method of payment.[/FONT]


[FONT=&quot]However if you are unable to accept my offer then I will regrettably have to withdraw the offer and continue paying my monthly re-payments via Payplan.[/FONT]

[FONT=&quot]I look forward to receiving your reply.[/FONT]

[FONT=&quot]Yours faithfully[/FONT]




I would probably start with an offer even lower. You can always then go a bit higher later.

What they will accept depends on who the debt is with and wherter it is a DCA or the original creditor, how long you have been with Payplan, how much you are paying monthly and how long it will take you to pay off the debt. And just to top it off who opensd the F&F offer letter on the day!!

I have just offered 40% to all mine and 2 accepted some declined and some came back asking for more.

Just make sure everything is in writing and do not agree anything verbally.

Keep all correspondance for 6 years.

alona1

Thank you very much!

Tuscan

If you owe £800 id be tempted to offer less than £500 maybe £350, they can only say no then you can up the offer

alona1

Ok, I offered £400 to Hbos for £800 OD they blankly refused and want the full amount. 2 of my other debts are with Hbos so I wont bother offering them again.

I offered Moorcroft £400 for £800 Lloyds OD they have replied with £493. I dont know whether to accept this offer or try offering the money towards one of my bigger debts if I can get it reduced enough (MBNA & Barclaycard).

Has anyone dealt with F&F with MBNA or Barclaycard?

I've rang them to double check everything with Moorcroft so should I counter offer them?

alona1

OK, I've spoke with Moorcroft again this morning as I wasnt happy with their wording ie- no mention of F&F and not sending anyone else to collect. Have asked them to re-write letter with this info in then I will accept.

I've also written F&F letters to the rest of my creditors offering 30% of the balance so I will see how it goes from there as it looks like its going to be a long drawn out process...

Pott5y

Alona,

I have sent letters 3 times to all my creditors offering 40% and these include Barclaycard and MBNA (for a loan). Barclaycard have refused my 40% and just sent a standard letter to me asking to call to discuss a higher offer (yeah right) and MBNA have not responded to any of my letters.. just plain rude if you ask me!!

Two of my creditors IF and Wescot both accepted with correct wording and have now been paid off... Yippee :beer:

It can be a long trawl but better to offer a little bit more at a time, you never know when they are going to bite!!

Good luck !!

DGJsaver

An original OC is almost never going to accept a f&f that isnt fairly close to the figure you owe in full...once sold off you stand a far better chance..could take a while though

alona1

Pott5y wrote: »

Alona,

I have sent letters 3 times to all my creditors offering 40% and these include Barclaycard and MBNA (for a loan). Barclaycard have refused my 40% and just sent a standard letter to me asking to call to discuss a higher offer (yeah right) and MBNA have not responded to any of my letters.. just plain rude if you ask me!!

Two of my creditors IF and Wescot both accepted with correct wording and have now been paid off... Yippee :beer:

It can be a long trawl but better to offer a little bit more at a time, you never know when they are going to bite!!

Good luck !!

Brilliant, thanks Potty, nice to know someone else is dealing with MBNA and Barclaycard. I owe MBNA £4350 and Barclaycard £2950. What sort of figures have you been offering if you dont mind me asking?

Well done in paying 2 of yours off, what % did they settle on?

I have a loan and cc with Halifax but they are now with Blair, so I'm hoping they're more likely to accept so I've made them an offer too, to see what comes back. At least if it takes a bit longer it gives me chance to find the extra cash..

alona1

Forgot to add, I've also sent the proof of default letter to the 2 (Halifax) accounts that are with Blair, did my credit file this morning and they are both showing defaulted but I never received notice...

alona1

I seem to be struggling with getting F&Fs.

I'm still waiting on a response from Moorcroft. MBNA have come back with a blatant NO :-(

Blair (Halifax) have come back wit 'make us a higher offer'. Feeling a bit disappointed really as I wanted to get this paid off sooner...