F&F Acceptance-Is this wording ok to pay?

TakingControl

Good Morning

I have been given by my mum who lives abroad (I am originally from abroad) a sum to settle on of my biggest creditors MBNA who suprisingly without haggling accepted 55% of the balance as F&F offer even though that the debt was still in house and I have not missed once my payments under the DMP Plan.

Anyway, I received thi yesterday and I am not 100% sure if this wording in the letter is ok so that I can pay?

''We can confirm your offer of £XX will be accepted in Partial Settlement of your account. Our agreement is conditional upon payment being received 21 days from the date of this letter. Upon receipt and clearance of the payment, we confirm no further action will be taken to recover the remaining balance. Your account will be registered as Partial Setlement with the Credit Ref for six years. Please be aware that a statement will be sent to you confirming the receipt of partial settlement payment, which is for your info only as you account will subsequently be closed.''

I think the above is ok? Also, as my mum had to transfer the money into my account as obviously cheques from abroad can't be used, is it ok to send a cheque from my account even though I stipulated the money is coming from a 3rd party which it is?

Thanks for your help. I am now waiting on hopefully more acceptance letters :j

Pott5y

Taking Control

I would be very wary of the wording of this letter as nowhere does it stipulate that this is Full and Final or that you are to be released from all liability for the debt. All that is used in Partial Settlement and that MBNA will not chase you.

Call National Debtline 0808 808 4000 and read the letter to them.

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php

They will give you a definative answer Yes or No. They are incredibly helpful.

Also if at all possible get someone else to write a cheque or send a Postal Order as it is more proof that is is paid as a Full and Final rather than just a debt payment coming from you.

Good luck

fermi

Sounds pretty much OK.

It would have been nice to see something stating that unpaid balance won't be sold on, rather than that being tacitly implied by the "we confirm no further action will be taken to recover the remaining balance".

A partial settlement mark on your credit file is acceptable.

As said, give National Debtline a call to check the wording. Tel free: 0808 808 4000

Tommy100_2

Hi,

This is my first time posting and I'm hoping someone could point me in the right direction.

I have debts of 40K and I'm currently paying through CCCS and would be debt free in 2.5 years time. I have the chance to get a lump sum from a redundancy package of 20K and I have written to all of my creditors offering them this as a F&F. I haven't heard back from any of them yet (2weeks since I wrote to them). As this is an opportunity to offer them partial payment, would it make sense to cancel my CCCS payment before they have accepted the offer? I have never missed a payment on my DMP and I'm fully up to date. As I am going to be jobless if I take the package I am hoping that they will see this as their chance to have some of the debt repaid as a final settlement. If I stop my payments via CCCS would this help towards them accepting the F&F? I would only be able to offer them a token payment if I took the redundancy package and I would then have to search for another job - how long this may take I don't know!

Effectively:

1) Offer my F&F at 50% - done
2) Paid DMP installment last month - done
3) Should I cancel DMP for this month?
4) Will it help my chances of the F&F settlement being accepted if I stop paying my DMP installment as from now (I may not be made redundant for up to 3 months).
5) The redundancy package will need to be used for a) living off if they don't accept F&F until I find another job (can they demand monthly payments to come from this?) b) Clearing all of my debts at 50%?

JasX

Looks like they're pulling a fast one, Partial settlement is just that PARTIAL not FULL so presumably would leave them free to sell on the remaining debt etc etc. Take proper advice but doesn;t look good

fermi

JasX wrote: »

Looks like they're pulling a fast one, Partial settlement is just that PARTIAL not FULL so presumably would leave them free to sell on the remaining debt etc etc.

Not necessarily. It's nice to see Full & Final if you can, but a "partial settlement" doesn't automatically allow them to sell it on.

A partial settlement is still a settlement of the account.

'Partial' just reflects the fact that in the settlement only a partial payment was received to achieve that settlement, rather than anything to do with being pursued for the remainder.

However, as said, always best to get a debt advisor to check over the wording.

TakingControl

Thanks everyone. i did speak to an adviser last night and she said the letter was 95% ok but to request written confirmation that the outstanding balance won't be sold off to a 3rd party before paying the F&F.

So letter send requesting this today, fingers crossed.

TakingControl

debtnegotiator wrote: »

hi, saw ur post, think my thread, (which as i'm new i cant post the
link, but search debt settlement and you can find it) can help


MBNA settlement rates CAN be as low as 2(5% ESPECIALLY if its still in house (debt collectors fee's BEFORE a debt is sold will usually add 10-15%)

IF you havent paid anything yet, try telling them the money has stalled, or contact me for some specific help

i think the fact they agreed IMMEDIATLEY highlights this.

hope thats some help

Oh and lastly MBNA will only EVER settle as FULL AND FINAL on a 95% payment of the debt and only in very exceptional circumstances will they budge on that

in the debt collection industry a partial settlement is seen as standard, and will update your credit file as a zero balance
(though, yes the default remains)

hope thats some help

Thanks for the above advise. I know that it won't be marked as a full payment but I was just conscious that the outstanding balance could be sold off to someone else. I have not paid anything yet until I get written confirmation that this won't happen.

I see what you say about the settlement figure but I won't stall and renegotiate as I have confirmation that they accept it and it will be one less creditor to worry about especially since MBNA were the first to accept the DMP, stop interest and charges and never defaulted me.