No Response to Full and Final Settlement Offers

TheLostSheep

I made the first approach of full and final settlements to my main creditors: Lloyds TSB and Barclaycard on the 30th March 2011. I stressed I was looking for a reply within 14 days and that the money I was offering as full and final was timebound.

I have still not had any response. My initial offer was 30% which I appreciate was low, but best starting any negotiation low.

How have other found financial institutions when you send these letters? I sent them recorded mail and they were definitely received.

Should I send follow up letters? Or just wait a response.

A background to my situation is available here:

https://forums.moneysavingexpert.com/discussion/2574567

TheLostSheep

This is what I sent...

WITHOUT PREJUDICE

Dear Sir/Madam,

Account Number: XXXXXXXXXXXX

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to offer to pay the money which I owe in full to Barclaycard. However I can raise £790 and I wish to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made without prejudice, on the clear understanding that, if accepted, neither you nor any other associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if the offer is accepted you will make an entry on all credit reference agency files relating to the above account, marked as 'satisfied in full’ with a zero balance and the account closed.

I offer full and final settlement as I continue to struggle to make minimum payments to my debt due to on-going financial difficulties. I am in a repayment plan with Lloyds TSB due to financial difficulties. As things stand, my circumstances are very unlikely to change in the near future. I am currently not in employment having been made redundant, so this situation may likely even worsen. I am concerned I will never be able to repay the money which I owe in full due to these circumstances and my high level of personal debt. It would therefore be in my and all creditors’ interests to accept this offer of full and final settlement.

This offer of full and final settlement is being made from a relative, only on the basis that it clears off the debt in full and is not a contribution to the outstanding balance. This offer is time bound and payment can be made within one month of receiving your written agreement to this offer and the method of payment.

I have included a copy of a table setting out how I have calculated the offers out to each creditor. I trust you will find it helpful to see you are receiving a fair offer of pro-rata settlement.

I look forward to receiving your reply in the next 14 days.

Yours faithfully

Mr X



Creditor Total Debt* Full and final settlement offer
Lloyds TSB Credit Card £13,432 £4,010
Lloyds TSB Bank Account £2,900 £866
Lloyds TSB Loan 1 £6,148 £1,835
Barclaycard £2,620 £789
Total £25,100 £7,500

*Total debt as at 22nd March 2011.

Pott5y

Hi cg81,

Great letter.

I would give them until the end of the month before following it up with another. I found that it sometimes took them 28 days or so to reply.

Good luck

TheLostSheep

Thanks for the reply. I think I edited the letter about 10 times before coming up with something.

Even if they don't accept the 30%, its a good starting point for negotiation on my part. The main Credit Card of over £13k has been nothing but hassle and hopefully Lloyds in particular with that can come to some arrangement.

I'll leave it another 10 days before replying.

Pott5y

Both Lloyds and Barclays can be tough cookies, but don't let them get to you. As you said starting low was a good plan.

I was in a slightly better position than you financially, so I could only get them to accept 70% settlements:mad::mad:. But all done and history now.:T:T

TheLostSheep

I'd 'hoped' (says quietly) that they'd settle at possibly 50%. Lloyds have twice verbally said I should do full and finals. Given my experiences, I am only dealing in writing with them. I'm tempted to phone but no I will get the clueless Indian Call Centre giving conflicting information!

jadex

Your offer is no longer valid as per your letter, so I wouldn't expect they will respond to it (pointless to respond after expiry date).
You should have given them much more than 14 days as decision to cut their loses (i.e. accept your offers) are not taken lightly and are probably not within a competence of some random persons dealing with you.
In 99% of cases, no answer = no acceptance (that's the way it is).

As long as you keep to pay minimum payments and are not in arrears / defaulted, then they will ignore your offers. You need to fall in arrears at least to deal with collections instead of bog standard CS.

TheLostSheep

jadex wrote: »

Your offer is no longer valid as per your letter, so I wouldn't expect they will respond to it (pointless to respond after expiry date).
You should have given them much more than 14 days as decision to cut their loses (i.e. accept your offers) are not taken lightly and are probably not within a competence of some random persons dealing with you.
In 99% of cases, no answer = no acceptance (that's the way it is).

As long as you keep to pay minimum payments and are not in arrears / defaulted, then they will ignore your offers. You need to fall in arrears at least to deal with collections instead of bog standard CS.

Not quite so. You'll read the following:

This offer is time bound and payment can be made within one month of receiving your written agreement to this offer and the method of payment.

I've said I look forward to their reply. Every other letter I have written to these organisations has been responded to. Thanks for your reply but I don't think I'll give up hope based on your response.

TheLostSheep

I've just received the following reply from Barclaycard:

--

Thank you for contacting us.

Unfortunately, it is not in our policy to accept less than the full outstanding balance in final settlement of your account.

However if you wish to reduce the outstanding balance on your account, you can make a large payment to the account, which will also reduce your future minimum payments.

We are obliged to inform you that if you do not make payment in accordance with your monthly statement, this will result in additional fees being applied to your account.

Need help?
If you are having trouble making your payments, please call us, we want to help you through any financial difficulties you may be having.

--
I find the last bit quite ironic really! Do they really not settle full and final? Should I reply back offering them a revised higher amount say nearer £1000 and see what they say?

winner12

Hi
Are you in default with Barclays or Llloyds
They only usually accept full and finals that are low if they have no chance of you repaying in the near future

TheLostSheep

default with Lloyds in the sense they have me on a revised plan for the payments of a lower amount with interest slashed. Lloyds are the one I am hopeful of getting a more positive response from.

This is only a little knock. I'm going to reply back to them in writing, stating it is unfortunate my offer was deemed unsuitable. They have stated they want to help me through any financial difficulties I may be having according to the letter, so lets see what a revised offer brings.