(Hopefully) quick question

feature59

Hello,

quick bit of advice required.

Is it better to accept an offered 50% of original debt settlement or to send an SOA and pay in full monthly.

Credit rating is rubbish anyways so after six years whats the difference between full and partial settlement on the record?

Any advice greatly appreciated

BlushingRose

I think if it's a partial settlement, you can be chased for the remainder in the future...

sickasachip13

Hi,
If you're going to try for a partial settlement, I'm thinking you mean trying for a full and final settlement? If you are thinking F&F, ensure that you use the correct letters and wording - this is very important - in all your negotiations. If the creditor accepts your offer, and you've done everything by the book and got the correct agreement from them, then the remainder cannot be chased in future.

Everything relating to the debt will drop off your credit record 6 years after the default being registered - not the time of payment - and this 6 years will tick around at the same rate whether it's a full or partial settlement.

SAAC

feature59

Hi,

Thanks for the responses.

The letter I have had is that they will settle for 50% I have yet to contact and accept on the confimration that they will not chase for remainder and is updated as settled/particially settled on form.

This would really really help me if they would accept just dont want it biting me in the bum later when they rock up asking for the remainder and questioning the settlement.

How exactly do I make it watertight or just confirming the above conditions?

Again any help would be greatly appreciated:money:

National_Debtline

Hi feature59

You could do worse than use our template for making such an offer as follows:

(Your home address)
______________________
______________________
Date:__________________
To: _____________________
________________________
Dear Sir/Madam

Without Prejudice

Account No: _____________________________
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 (add details of your
circumstances and financial situation). However, I can raise £ (put the amount which you can
afford to pay) and I want to offer this as an ex-gratia payment in full and final settlement of the
account. This offer is made on the clear understanding that, if accepted, neither you nor any 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 accepted, you will make an entry on a credit reference agency file relating to the
above account as having been paid and the account closed.
Payment can be made within (put the number of days or weeks within which you will pay) of
receiving your written agreement of this offer and method of payment.
I look forward to receiving your reply.
Yours faithfully

(Your signature)

*******

The term "partial settlement" refers to how the agreement will be recorded on your credit file. It is used to distinguish between someone who pays a debt in full (a "full settlement") and someone who makes a reduced lump sum payment ("partial"). In both cases the debt is definitively over and done with but the person who settles their debt in full will have the better credit rating.

sickasachip13

I've used the template above to do a couple of F&Fs and haven't had any problems. It's also worth remembering that if the creditor has already said to you that they'll take 50% it's definitely worth offering less then this.

SAAC

feature59

Thanks for the advice,

The total is 2100, I am going to start with an offer of 300 and see what happens. I want to start low then work up. I currently have 600 then will have the 50% by mid July.

WHta should I be offering or is this about right?

Question is if my offer is not accepted (even if I offer the half) can I then offer an SOA and pay monthly. should I put in the letter out that if I pay monthly it would take a longer while to pay making this offer worthwhile?

Cheers

paulmapp8306

to answer part of the initial Q - after 6 years there will be no dofference, and the "S" or "PS" will have dropped off your file.

Im not even asking with my F&Fs as the debts are 11 years old (on a DMP - so debts were shown as defaulted within 2 years of starting the DMP) so have long since dissapeared from my credit file. All Im interested is the lowerst F&F they will take, and that I have it in writing the remainder will not be chased, and Im free of the obligation.

DalePie

paulmapp8306 wrote: »

to answer part of the initial Q - after 6 years there will be no dofference, and the "S" or "PS" will have dropped off your file.

Im not even asking with my F&Fs as the debts are 11 years old (on a DMP - so debts were shown as defaulted within 2 years of starting the DMP) so have long since dissapeared from my credit file. All Im interested is the lowerst F&F they will take, and that I have it in writing the remainder will not be chased, and Im free of the obligation.

^^ What Paul said.

No difference at all credit rating wise as it all drops off after 6 years anyway. Just make sure you have it in writing and make it obvious that "partial payment" is all that's required to close the case.

Once you know for certain they can't come knocking for the rest down the road then your fine.

feature59

Hi thanks,

This debt has been sold on about four times westcot, moorcroft, credit services limited off the top of my head. Would be a real help of I could wipe it.

Anyone with experience in f&f how low? How forceful should I be with offers and finally I need a letter saying its partial settlement that won't be chased. Is that right?

Many thanks again I can't thank the people on this forum enough. The calm in the storm that is debt companies!!!!

paulmapp8306

Depends if the derbt itself has been sold on, or if there different collection agencies used by the initial creditor who still owns the debt. Both could have happened. It also depends how old the debt it, and the current rate it is being paid back.

Most agencies will start at 80% of the outstanding. Some wopnt budge from that - others will come down. Many wont go below 50%, BUT some will - especially if they jhave just bought the debt for peanuts. I closed one of mine for 12.5% of the outstanding ammount (they offered that to me within 7 days of taking over the account - I didnt even try to negotiate at that discount) - though its the only one Ive managed to get below 75% so far (still working on things).

TBH though - as they have offered 50%, one of two things will happen:

1. They will be open to negotiation - start at around 10-15% of the outstanding debt and se if they come back with a coutner offer (they wont take your first offer). Expect to settle at 25-35%, but it may take 3 or 4 offer/counter offers tio reach that point.

2. They wont budge - which will be if lower than 50% wont give them any sort of proffit. If this is the case they will reject your offer and re-iterate that 50% is what they want to close the account. No point in arguing the matter if this happens - its 50% or no deal.

In either case, you need WRITTEN confirmation of the offer, including that the account will be closed, registered as settled (either partially or fully will do) and any remaining ballance will not be chased in the future by either the curtrent owners or any 3rd party. Once you have that - pay them.