Full & Final Settlement

emjel

Can anyone recommend a good practice for negotiating a full & final settlement on a loan. Being asked for just under £10k for early settlement on a £15k balance. Cannot afford repayments anymore - can only get around £7k which is around 30% less than asking. Is it better to telephone first then write or simply write. I do not want to spend a lot of time with offer going backward and forward. Thanks.

mrcow

I wouldn't write with an offer personally and would always negotiate by phone.

Once you have an agreed figure that you are both happy with, then write the letter immediately with a cheque and quote the details of the conversation and who agreed the settlement.

Xbigman

You should write first with an offer. Then negotiate by phone if they turn it down. But, NEVER EVER send money without full written acceptance of your offer first. Its not unknown that creditors take your money then deny all knowledge of the debt.
Regards



X

HalfPint

Hi there,

I went through this about a year ago now with about 8 creditors I owed money to.

Follow the advice on this website http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers. This is what I did and I only had problems with one creditor not accepting, and after writing to them again - they eventually accepted.

3 points to stress

1. ALWAYS do it in writing, never negotiate by phone.
2. MAKE SURE they confirm in writing and they state in the letter "accept your offer in full and final settlement". If you dont, they can legally ask you for the rest of the money later on.
3. DO NOT be pressurised into sending the money until you have their confirmation in writing in your hands.

following this procedure does work, I saved over £5000 by doing this. Good luck.

Laura x

emjel

Laura

What percentage did you offer them. Some people reckon you can get away with as little as 40% - others say no one will accept anything less than 75%.

Thanks

emjel

What did you say in your second letter that you didn't say in your first that made them accept your offer