Westcot Final Settlement

luis1973

After finding out that we owe Westcot £800 they have offered us a final settlement of £600 which I have accepted.

My question is what (if anything) do I need from them to confirm the offer and then when I have paid to confirm that it has been paid.

I know nothing about the company and am worried about paying them so much money. I have no experience about paying off debts that have been transferred to other companies for collection.

Any help would be much appreciated.

file_wizzard

1. Have they proved they have the right to recover this alleged debt?
2. Have they proved the debt is actually yours?
3. Have they given you a statement of account to show that what they claim you owe is the correct amount?
4. If they have proved 1 + 2 + 3 to your satisfaction then NEVER pay them directly, always ask for an offer of full and final settlement and pay this via a 3rd party.
5. DON’T pay them via any form of debit / credit card.
6. Always conduct you communication in writing, never take any agreement they may make on the phone as binding

luis1973

Thank you. Will make sure I have all of this information.
One other question though - how do I pay via a 3rd party?

file_wizzard

Make sure that any offer is made by, and paid by a 3rd party, i.e close family member who will say that they are paying the debt on your behalf for the reduced sum.

I wont bore you with the full legal precedent, however if you don’t do it in this way then there is nothing to stop the creditor / DCA pursuing you for the rest of the debt in the future even if they agree a Full & Final now.

anniecave

in my experience (I work for a debt collection company) I wouldn't worry too much if you have it in writing about going via a third party but I would agree it's good to do it that way if you can. Suggested easy way just ask your parents or someone to write out a cheque then you get the money into their bank account ready before the cheque is cashed.
Also keep a record of the cheque number, value, date you sent it, check when it clears the bank account, if possible take a photocopy of it before you send it in, send the cheque via recorded delivery (it only costs £1 including postage) and get confirmation from westcott after they've cleared the cheque that the debt is cleared - ask them to send you a statement of the account.

waveydave

file_wizzard wrote:

1. Have they proved they have the right to recover this alleged debt?
2. Have they proved the debt is actually yours?
3. Have they given you a statement of account to show that what they claim you owe is the correct amount?
4. If they have proved 1 + 2 + 3 to your satisfaction then NEVER pay them directly, always ask for an offer of full and final settlement and pay this via a 3rd party.
5. DON’T pay them via any form of debit / credit card.
6. Always conduct you communication in writing, never take any agreement they may make on the phone as binding

could you please go over 4,5 and 6 and let me know WHY ?

im a bout to pay off some settlements so am very interested in why you suggest these

luis1973

Well in that case that is great because I am the third party - is my boyfriends debt.

Have just spoken to them and they are insisting that I pay by debit card. Can they force me to do this? I would much rather pay by cheque but if i do pay by debit card is this still ok?

file_wizzard

luis1973 wrote:

Well in that case that is great because I am the third party - is my boyfriends debt.

Have just spoken to them and they are insisting that I pay by debit card. Can they force me to do this? I would much rather pay by cheque but if i do pay by debit card is this still ok?

NEVER pay wescot ( or any DCA for that matter) by any form of card!!, "mistakes" do happen, and many others have posted on here to say that further unuthorised payments have been taken.

plugs76

luis1973 wrote:

After finding out that we owe Westcot £800 they have offered us a final settlement of £600 which I have accepted.

My question is what (if anything) do I need from them to confirm the offer and then when I have paid to confirm that it has been paid.

I know nothing about the company and am worried about paying them so much money. I have no experience about paying off debts that have been transferred to other companies for collection.

Any help would be much appreciated.

"YES" They should confirm it in writting, if you dont get a letter from them then request another. I will also agree with a reply on here and that is, keep all the receipts and also request a letter from them, of confirmation that they have recieved the payment, and that the debt/account has been closed. NEVER agree with any debt collectors over the phone and take their word for it, always have it confirmed in writting.

file_wizzard

waveydave wrote:

could you please go over 4,5 and 6 and let me know WHY ?

im a bout to pay off some settlements so am very interested in why you suggest these

4. is a case law issue

Pinnel V Cole (1602)

And more relevant; Hirachand Punamchand v Temple [1911]


The basic rule of law of both is that part payment was contested, however in the Hirachand Punamchand v Temple case it was ruled that as the payment was made by the debtors father that a “consideration” had been made and therefore no further claims could be made as this would effectively be fraud on the father

There is also the matter of what is known as “Promissory Estopple” this basically means that in cases where no consideration has been given (I,e the debtor did / gave something he was not obliged to), that in some circumstances an agreement may still be lawfully binding.


5. as “mistakes” do happen

&

6. this is just good practice, and for the same reasons given in 5

plugs76

file_wizzard wrote:

Make sure that any offer is made by, and paid by a 3rd party, i.e close family member who will say that they are paying the debt on your behalf for the reduced sum.

I wont bore you with the full legal precedent, however if you don’t do it in this way then there is nothing to stop the creditor / DCA pursuing you for the rest of the debt in the future even if they agree a Full & Final now.

I agree totaly, I paid a debt off in July 2005 through a bank Giro, this debt had never reached the creditors, and as a result I am now being asked by another debt agency to pay it again. It was a good job I held onto the original receipt from the bank with the stamp mark on. I have had 16 letters from Lowell Finacial for the owed debt which has been paid.
Always keep records of any transactions you make, and keep them with all your letters from them. Barclays Bank have been investigating it for over 4 months, but Lowell Financial expects me to pay the outstanding balance again, and then contact Barclays Bank to resolve the matter?