Full & Final Offer Amounts?

~Jem~

Hi all!

I wondered if there was anywhere that had info about the amounts that companies are likely to accept for full and final settlement offers?

I know it depends on the individual circumstances, but was looking for just a rough guide at what companies accept.

I wouldn't want to offer £1500 for a £2000 debt only to find out they would have taken £1000 etc.

Or would it be best to give them a call and see what they would accept?

Thanks in advance

nolongerindenial

Always offer Low is my biggest tip

Treat this exactly like a business negotiation, when negotiation pricing you can always go up, but never go down! I write my first round of letters, post them knowing they are all going to

I recently offered one creditor just over £600 for a £3100 debt and they have come back with an offer of just over £1200! (40% of the debt) which I will be paying shortly as I think it is fair!

Cherryjack

nolongerindenial wrote: »

Always offer Low is my biggest tip

Treat this exactly like a business negotiation, when negotiation pricing you can always go up, but never go down! I write my first round of letters, post them knowing they are all going to

I recently offered one creditor just over £600 for a £3100 debt and they have come back with an offer of just over £1200! (40% of the debt) which I will be paying shortly as I think it is fair!

Thats amazing! do you think i could do this with my catalogue? i owe £1400 and unsure what to offer.. i need to save for it first aswell

happy_bunny_2

From what I read on here, it all depends on the status of the account.

-If up to date or slightly late, then don't even bother.
-If defaulted recently/with internal collections, you may get something off, but sometimes banks refuse out or principal
-once passed onto external debt collection, you can start offering less. Go low to start with.
-once close to being statute barred, likely to accept a lot less.

If no CCA, then may be able to negotiate also.

Cheeryjack, as for the catalogues, how old are they, who has the account at the moment? When did you last pay anything?

AngryDog

Statue Barred only occurs if you dont acknowledge the debt though doesnt it? so surely if its close to being statue barred and then you make a F&F offer, then all you are doing is starting the clock again?

fatbelly

That's the reason the standard template letter is headed 'without prejudice'.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

Cherryjack

happy_bunny wrote: »

From what I read on here, it all depends on the status of the account.

-If up to date or slightly late, then don't even bother.
-If defaulted recently/with internal collections, you may get something off, but sometimes banks refuse out or principal
-once passed onto external debt collection, you can start offering less. Go low to start with.
-once close to being statute barred, likely to accept a lot less.

If no CCA, then may be able to negotiate also.

Cheeryjack, as for the catalogues, how old are they, who has the account at the moment? When did you last pay anything?

Hi Happy bunny :-)
Ive had the catalogue debt for 6 years.. and i started making £1.00 token payments each month since last year september.. (is that ok)? what is a statute barred? they havent defaulted me...its shows on my credit file as arrangement made

fatbelly

If there's a six-year period (in England/Wales, it's 5 in Scotland) where no payment is made and no written acknowledgement, then the creditor is out of time (statute barred) to take Court action.

Factsheet | Liability for debts and the Limitation Act

Cherryjack

fatbelly wrote: »

If there's a six-year period (in England/Wales, it's 5 in Scotland) where no payment is made and no written acknowledgement, then the creditor is out of time (statute barred) to take Court action.

Factsheet | Liability for debts and the Limitation Act

Never! cant believe that..gosh loads of people must just ignore them then

nolongerindenial

Cherryjack wrote: »

Thats amazing! do you think i could do this with my catalogue? i owe £1400 and unsure what to offer.. i need to save for it first aswell

I couldnt say without knowing what your personal circumstances are - My ability to go hardball with them and detach myself emotionally from the problem is one of the key skills I have learnt - I used to see debt as a personal issue and not a business issue, "I" signed a contract and I am responsible for the debt, now I just treat my creditors like the suppliers of my business (I am self employed), when it comes to paying they have to wait until I have it. Dont get me wrong there are times I am in tears with the pressure the DCA's are putting me under, but then again there are breakthroughs and successes which make me a lot happier. I rarely succumb to there pressure any more as I am almost numb to it!

happy_bunny_2

Fatbelly answered the statute barred below, but not really applicable as you have been paying each month.

Worth asking for a copy of your CCA via the standard template letter, as I believe pre 2007 they were flakey if the existed at all. My account was 90s and never signed one. Did you?

Difference this makes is worst they can do is default you, can't get a CCJ without one. I found this makes them more willing to be reasonable when listening to offers.

Cherryjack wrote: »

Hi Happy bunny :-)
Ive had the catalogue debt for 6 years.. and i started making £1.00 token payments each month since last year september.. (is that ok)? what is a statute barred? they havent defaulted me...its shows on my credit file as arrangement made