Think I Know

Miss_Poohs

the answer to this but I just want to check with a higher authority (ie you guys!!).

My DH decided to let me lose on his creditors to see if we can hack down his debt any futher.

I started with the wee ones first, M&S and EGG. I sent the letters last Thursday and M&S replied this morning.

I'm surprised at their response as I thought it would be a flat no, but I'm still not happy.

He owes M&S £1800 - we offered £750 as a F&F.

Their letter says they are willing to accept our offer as a part settlement of the outstanding balance.

Then it goes on to say "once we have received your payment we will indicate on your credit file that we have accepted less than your outstanding balance to settle the account, and that the default has been satified".

The rest is the standard blurb.

I would really have liked it to say the full and final bit - and I think on one hand the letter is saying well take it but not in full settlement, then it kinda goes back on its self and says that the balance will be settled.

I'm not impressed and I'm on the verge of writing to say thanks but no thanks - what do you think?

Just adding - that my husband has been on a DMP since June 2008 (as we're in Scotland its covered by DAS), and if allowed to run it will take in excess of 10yrs to clear his debt.

Miss_Poohs

Anyone?

I'd be very grateful.

Miss P

podperson

That's rather odd wording :S I think what it is saying is that they will mark against the default that the account is no longer in arrears but you will still owe the rest of the money - I wouldn't accept this as basically they aren't taking any less on the total balance at all, just trying to get a lump payment out of you. I would write back to them and say since they are not able to accept the amount as full and final settlement you will continue with the dmp payments -and try again in a few months when they have realised that you are serious

NorthernLas

National Debtline Factsheet on F&F http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

What you want to prevent is the debt being sold on to someone else, so I think them saying it is satisfied whether partial or not is OK.

I would have said that less than 50% is good.

Options
1. Accept and learn to offer less on the next ones
2. Write back and tell them that you can't quite raise the money but could raise £500
3. Say no and send again in a few months

DVardysShadow

Would not take it without confirmation that they will not attempt to recover more nor sell the debt on.

Miss_Poohs

More of less along the lines of what I was thinking.

I'm going to reply to the effect that - thank you, but it's not the F&F I had hoped for, therefore will continue with the DMP for the forseeable.

I'll give it a few months and write again offering the same amount for an F&F, and see what they say.

Thanks all.

Miss P

Miss_Poohs

OK - heres our response.

Comments appreciated.


"Thank you for your reply to my offer of a full and final settlement on the above account.

The offer was made on the condition that it would result on a full and final settlement of the account and not a partial settlement and that it was 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 would be released for any liability.

I also requested that, if accepted, you would make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

For these reasons I am not willing to accept your offer and therefore have no alternative but to continue with our current agreement of £11.42 per month for the next 160 months."

Thanks everyone.

Miss P

SusieT

I think from reading other posts that full and final is only recorded if you pay 90% or more of the balance, and partial settlement is anything less than that. It is the wording for your credit file rather than anything being outstanding on the debt.
Personally if they were to confirm that the remainder would be written off etc (in line with the national debtline site) I would have accepted the fact that the credit report would not show as fully satisfied, but thats entirely your choice.
Hope you get him sorted out

Hannah_10

I'd wanna see something about you being released from liability.

Miss_Poohs

I sent the reply back, recorded, today saying that we're not happy with it and that we'll continue as we were with the payments.