Negotiating reduced payment in full and final settlement?

feeling-good

geoffky wrote: »

WRONG IS SO MANY WAYS.....i settled once at 10% for a lot more than 20k,,,do a search and be educated

This is not wrong at all, think abut it, the banks are suffering huge losses at the moment, through their own fault of course, they need to recover as mouch money as possible, why would a creditor accept 10 to 20% when they can keep getting monthly payments off you and keep racking up charges and interest ?
there are so many people defaulting, even more reclaiming unfair charges PPI etc they cannot keep this up ! they are looking at getting more and more of the debt owed to them repaid !
I have searched through all these posts and cannot find anyone on these posts who has been able to get a full and final settlement at 20% probably as there is no such thing ! how can a payment be FULL and final if you are not paying the full amount ? that is why it is called a short settlement !
You may have in the past been able to get a settlement at 20% but that was twhen everyone was hunky dory and paying what they owed ! nowadays near everyone is defaulting !

feeling-good

also know as a Partial setlement, and I have googled it and looked at lots of sites to confirm what I have said and I am correct. It will show on your credit file as Partially Satisfied for the next 6 years

YorkshireBoy

feeling-good wrote: »

It will show on your credit file as Partially Satisfied for the next 6 years

I believe the correct word is may, if you're not smart enough to cover that angle in your negotiations with them.

Poosmate

geoffky wrote: »

WRONG IS SO MANY WAYS.....i settled once at 10% for a lot more than 20k,,,do a search and be educated

"Once"? When was that? "Once" times were good for many, now times are hard for everyone.

What was acceptible "once" is not necessarily what is acceptible now.

Poo

geoffky

Poosmate wrote: »

"Once"? When was that? "Once" times were good for many, now times are hard for everyone.

What was acceptible "once" is not necessarily what is acceptible now.

Poo

Before the sky fell in on the world..it was a long time ago i admit..2002/3 i think and that was for a debt from the 90s house crash.so yes my info may be a bit outdated...but if you do not try you will not get.:)

feeling-good

I did not mean to give people the wrong information, I still believe I have not, it's just that this is how the banks etc seem to be going at the moment regarding settlements. Lets not argue, these forums are for support after all.....

Hanky_Panky

geoffky wrote: »

WRONG IS SO MANY WAYS.....i settled once at 10% for a lot more than 20k,,,do a search and be educated

Actually f-g has it pretty much spot on - you MAY have been lucky enough to get a lower amount agreed but at the level the op describes it is very rare particulalrly when you bear the OP's circumstance into the mix - I would go further and state 'unheard of'.

Who's the educated one ?

DGJsaver

It will depened on what stage the debt is at , once sold on to a third party , your cooking on gas for FUL AND FINAL settlements....

ashabdi

I negotiated a settlement with M&S to repay a certain amount as I had been made redundant just before being of pensionable age. I have a letter saying this and saying it has been recorded with a credit rating company, is there any other come back on this kind if settlement ie tax implication, death etc.

geoffky

feeling-good wrote: »

If you want to pay less than the full amount owed it is not full and final settlement, it is called a short settlement. As a point of information for you, it is very very unlikely that they would accept an offer anywhere near to 30 to 40 %. As a guide if you have been in difficulty and are now in a position to make a short settlement a guide which is normally acceptable to a loan company, bank etc is 80% of the total owed.
It will go on your credit file as " paid agreed short settlement " this will effect your credit rating. But if you have been having difficulty in paying anyway and making either reduced or missed payments, your credit file is already shot to pieces anyway so dont worry. It will clear in 6 years.
How do i know this, In january i made settlemets with all my creditors after being on a dmp for 5 years. For your info Egg refused anything but the whole 100%, Barclays accepted 60%, Lloyds group accepted 80%.
Hope this helps, probably not what you wanted to hear but as a starting point try 60%, a debt management charity would not offer below this figure as a starting point as it would not be accepted.

Ignore this,,,,,some people get away with 20%...go over the debt free board where there are thousands of posts about f&F OFFERS