Full & Final settlement offer

tonyrluck

Hi

Just received letter offering reduced settlement at 35% of the total balance. Not in position to take advantage, anyone know of anyone who has settled in instalments, im happy to settle over 6 equal monthly payments.....relative is committed to helping with this
Have offered 20% as a counter offer in the meantime, which i may be able to scrape together by the date they have stipulated.

Fingers crossed, this is the last account to settle so eager to sort

Thanks for any advice or thoughts

lvm

Hello,

Well done on getting the offer!

Was this the first offer they made and did they make the contact rather that you asking for it?

Can you say who the DCA is? (You're allowed to!)

I was approached by Equidebt offering 50% settlement. They also said I could pay over 3 months if I wanted. I rejected the offer anyway.

6 months might be a bit long but there's never any harm in asking.

If I was you - I'd send a letter saying you can either pay 20% immediately or 35% over 6 months and see what they say.

Good luck!

tonyrluck

Hi IVM

DCA is Barclays.Defaulted 2 years ago nothin paid since.Did offer 80% then but they declined(even after agreeing initially verbally to accept), now willing to accept 35%....
Yes, it was the 1st offer & i never asked for it, straight in which surprised me. i had been receiving final notice letters and ccad them several times, was with their internal DCA but the offer is direct from Barclays now.
I have sent letter offering 20% to pay by date they requested or for 6 monthly payments, hopefully they will accept 1 or the other, if not back to the drawing board.
Be good to clear it now though and be debt free for 1st time in 12 years...

thanks

paulo1paulo

Hi guys, please excuse me as this is my first post...
I'm looking for some advice/help in regards to Full & Final Settlement Offers... Your time will be greatly appreciated and I will post the outcome of my conclusions to support others in a similar situation...

I'm currently in debt to the sum of £14,750.00... I have been with Payplan for the past 3years now... Unfortunately last May I found myself compromised with income due to an injury at work... I have been off work since, which as you can imagine is taking it's toll financially... I have been making reduced payments to Paypal since last July to the sum of £6 per month... They are distributing it accordingly to each of my six creditors (£1 each per month)... I have no idea when i will be able to commence work as my injury is still very much disabling...

Thankfully I am now in a position where i will be in reciept of £5000.00 inheritance money within the next 8weeks (processing)... I have spoke to Payplan about this and they recommend that a settlement will only be successful at 50% (£7,375.00)... Unfortunatley i'm unable to find this amount due to my circumstances...

Should i attempt the negotiations myself in writting with template letters??? Do i inform them of where i have got the funds to settle (is this nessassary) or just request a settlement without explanation??? Has anybody any experience with the creditors below in regards to the percentage they generally settle for??? Also how much would each creditor settle for in my current situation (Percentage/££££)??? I have read throughout this forum that in some cases people have managed to settle their debts between 30-45%, I really hope that this will be the case for myself and i can put my Uncle's inheritance towards a greater cause... I have stated the nature of the debt and it's origin incase this has any baring on the negotiations????

I currently owe:
1)Wescot Credit Services/Arrow Global-£4500.00 (Loan), who are acting on behalf of MBNA banking, of whom placed a default on my credit score in Feb 2011, when the debt was forwarded on to the new creditors...
2)Moorcroft Debt Recovery Ltd-£250 (Overdraft)0, who are acting on behalf of LLoyds TSB , the debt was forwarded in Dec 2010...
3)BLS Collections-£3000 (Credit Card), who are acting on behalf of Lloyds TSB, the debt was forwarded in Dec 2010...
4)Mercers Debt Collections Ltd-£1250 (Credit Card), who are acting on behalf of Barclaycard, the debt was forwarded in Nov 2010...
5)Mercers Debt Collections Ltd-£2750 (Overdraft), who are acting on behalf of Barclaycard, the debt was forwarded in Nov 2010...
6)Opus-£750 (Credit Card), who are acting on behalf of Citi Bank, the debt was forwarded in Dec 2010...

Any advice/help given will be very much appreciated and in return I will recycle all advice given and practised through my own experience, for other's support and help calls... Thank you all sooooo much for your time and effort reading through my situation and for the support i have recieved within this forum, my grattitude is infinate!!!

paulo1paulo

fatbelly

paulo1paulo wrote: »

Thankfully I am now in a position where i will be in reciept of £5000.00 inheritance money within the next 8weeks (processing)... I have spoke to Payplan about this and they recommend that a settlement will only be successful at 50% (£7,375.00)... Unfortunatley I'm unable to find this amount due to my circumstances...

Should i attempt the negotiations myself in writing with template letters??? Do i inform them of where i have got the funds to settle (is this necessary) or just request a settlement without explanation??? Has anybody any experience with the creditors below in regards to the percentage they generally settle for??? Also how much would each creditor settle for in my current situation (Percentage/££££)??? I have read throughout this forum that in some cases people have managed to settle their debts between 30-45%, I really hope that this will be the case for myself and i can put my Uncle's inheritance towards a greater cause... I have stated the nature of the debt and it's origin incase this has any baring on the negotiations????

I currently owe:
1)Wescot Credit Services/Arrow Global-£4500.00 (Loan), who are acting on behalf of MBNA banking, of whom placed a default on my credit score in Feb 2011, when the debt was forwarded on to the new creditors...
2)Moorcroft Debt Recovery Ltd-£250 (Overdraft)0, who are acting on behalf of LLoyds TSB , the debt was forwarded in Dec 2010...
3)BLS Collections-£3000 (Credit Card), who are acting on behalf of Lloyds TSB, the debt was forwarded in Dec 2010...
4)Mercers Debt Collections Ltd-£1250 (Credit Card), who are acting on behalf of Barclaycard, the debt was forwarded in Nov 2010...
5)Mercers Debt Collections Ltd-£2750 (Overdraft), who are acting on behalf of Barclaycard, the debt was forwarded in Nov 2010...
6)Opus-£750 (Credit Card), who are acting on behalf of Citi Bank, the debt was forwarded in Dec 2010...

Any advice/help given will be very much appreciated and in return I will recycle all advice given and practised through my own experience, for other's support and help calls... Thank you all sooooo much for your time and effort reading through my situation and for the support i have recieved within this forum, my grattitude is infinate!!!

paulo1paulo

Sounds like payplan are not interested in your project. It will be a lot of work and there's nothing in it for them. They are not correct to say that you need 50% for a settlement. There are plenty of stories on these boards of settlements below that figure.

So you are going to have to go it alone. I'd start at 25%, just saying that the money is coming from a family member.

I suspect some of your debt has already changed hands for a low percentage. For example, Arrow Global buy old debt so I suspect that MBNA actually assigned (sold) that one to them. The key is who is being referred to as the client. So, if Wescot refer to Arrow as the client, Arrow own it. Moorcroft refer to LTSB as their client - LTSB own it. BLS are part of the Lloyds group, Mercers are part of Barclays, but I'm not familiar with Opus.

paulo1paulo

Thank you so much for your advice, i will take everything on board and apply it... I did think Payplan was a little un-supportive with my case!!! The client in are Wescot/Arrow, Mercers, Moorcroft, BLS & Opus, these are the creditors i recieve letters from now!!! Should i address all my letters to these creditors or the orgiginal creditors??? Hopefully at least 3 or the 6 will accept 25-30% after reviewing my situation... Should i also mention that i am out of work due to my medical condition and i have no indication as of yet when i will be returning??? I think this puts emphasis on my income/expenditure??? Again thank you sooo much for your advice...

paulo1paulo

timbstoke

Direct any offers to the last DCA that wrote to you - if it's a debt that's been sold on, they'll be the ones who paid the least, and hence the ones most likely to accept the lowest offer.

One thing that's also worth trying is including in your letter that as this is money from a family member, it's not a situation where you're able to negotiate a higher amount as a settlement, and you'd appreciate a response if your offer is not acceptable as you can then approach other creditors instead. It may help avoid them thinking "Well if he's offering this much, he can probably afford more - let's ask for another £1000 and see what he says"

paulo1paulo

That's awesome advice timbstoke, really do appreciate your imput, it really does help!!!
I've found out today that it's benefitial to persue a !!!!!! with a third party makin the payment on your behalf (family, etc)... This way your finances can't be traced via one of your creditors to your account, which in turn applies more pressure for them to accept... As I am in reciept of heritance money, i have now opened a new account with an alternative bank (private), for the funds to be deposited in... I have done this as i currently bank with Halifax and one of my creditors is Lloyds, who by law are able to access my Halifax account (same company as of 2010) and see i have additional funds than that being offered in my !!!!!!... This again avoids the tracing of any monies in reciept to the debtor!!!
I am considering an global !!!!!! offer of £3500, 25% to each creditor... I think given my current financial predicament this is a feesable offer to make... If yourself or anyone has experience with these DCA companies, could you please give me some insight as to how much % wise was eventually settled through an !!!!!! offer??? Was this figure reached by negotiations with the creditors or was it accepted once recieved??? For exaple, i offer 25%, they decline and compromise at 35% and i make a counter offer at 29-30%, an example from experience would again be highly gratefull...
paulo1paulo