Another Full & Final Settlement Thread...

basra

Hi guys,

I appreciate the time you have taken out to look at this thread.

I have a debt of £1436.64 with Lloyds TSB which has been thorough numerous DCA over the last 4 Years ( I defaulted in 2010). With the help of my partner I am now in a position to offer a full and final settlement.

With the advice I have read on this forum, I offered a settlement figure of £402.08 (28%). The DCA (Credit security Limited) replied with a counter offer of £718.32 (50%).

In my letter I asked for any reply to be in writing. Before I accept this offer, I would like to know your opinion on whether the way they have worded their letter will leave me vulnerable to further pursuit by another DCA in the future.

Below is a word for word transcript of their letter. Please let me know what you think.

Regards

Dear x,

In order to assist you with repayment of your debt our clients have confirmed that they are prepared to accept a reduced sum in settlement.

Providing payment is received by 1st April 13 the sum of £718.32 will be accepted as partial payment in full and final settlement and your credit reference file will be amended accordingly

your faithfully,

fatbelly

I know 'will be accepted as partial payment in full and final settlement' sounds like a weird phrase but Lloyds struggle to communicate in English.

'full and final settlement' has only one interpretation so at least they do use it.

'partial payment' is how the ICO say your file should be marked.

So it's OK if you want to settle at 50%, or you could try to get them to move a bit more.

basra

Thanks, that line got to me also, I could not get my head around it... A bit of me thought it was some sort of smart get out clause they could use later.

50% Is where I realistically thought I would end up at (Please note, this money was never loaned to me, it was all bank charges for me going £2 overdrawn when I was 16 & I could not afford month 1 bank charges of £125, this continued to grow to over £1400 until I defaulted.)

I appreciate your reply.. :cool:

AppleDap

Wow. We're they really allowed to charge you those bank charges at 16!

Deep_In_Debt

I'd add a bit about that this is in final settlement and neither they, nor any associate or third party will chase for any remainder in the future and that you are released from any further liability.

National Debtline website has a good template letter you could use with good wording.

happy_bunny_2

Link to national debt line:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

KeepFighting_2

Basra
To be absolutley sure I believe it is best for a third party ie your parents or a friend to make the offer to clear your debts, then they should make the payment by cheque. This way they have in effect purchased your debt form the DCA and therefore no one else can pursue you. It is best to make the payment via them and by cheque as then it is absolutley clear that this is the case.

imastudent

AppleDap wrote: »

Wow. We're they really allowed to charge you those bank charges at 16!

Not sure if you live in England or Scotland but as I understand it

Full and unconditional contractual capacity is acquired at age 18 - people below this age can only enter into "reasonable transactions" persons under 18 enjoy certain protections against unfair treatment............

and If a person aged 16 or 17 feels that they have been treated unfairly and substantially prejudiced by contractual agreements the can apply to the court to declare it void- this must be done by age 21

The relevant law on this is AGE OF LEGAL CAPACITY (SCOTLAND) ACT 1991

edited to say................

I think you could easily prove that you were treated unfairly whilst lacking full contractual capacity at just 16 years of age with a 2 pounds overdraft leading to over fourteen hundred pounds of debts

harveybobbles

Have the scumbag DCA bought the debt or are they just collecting on behalf of TSB?

If they have bought it, then they would have paid a penny for evey pound owed. So at £718 they will still be making a healthy profit..

I'd reclaim all charges forst from TSB. Offer the scumbag DCA a token payment of £1.00 and tell them to get knotted if they ask for more.

basra

Hi guys,

I resolved this last week with the DCA, I recorded the conversation with the adviser over the phone stating clearly that this payment is being accepted as a full and final settlement of this account and that no other DCA can come after me in the future.

As far as I know lloyds still hold the debt (they maybe lied) and I did contest the charges along with 1000's of others a few years ago but after the court case, I thought this was a dead end???

I ended up paying via a third party (girlfriend) who paid on her credit card which I payed back straight away.

I Appreciate all your guys feedback but honestly I am just glad to have got this debt off my mind!

p.s I honestly cant believe I racked up over £1400 worth of debt over £2 cigarettes! Thank god I quit!
Regards