Capital One Settlement

george66

Hello all,

I have a debt of £1834 with Capital One and am in a payment plan with them of £1 per month.
My son has offered to lend me some money to clear the debt, this loan will not be on offer for long, so would like to get sorted asap.
Today I phoned Capital One and asked for a settlement figure, they have asked for 50% as a settlement figure, and it would show as a partial settlement and the remaining amount would also stay on record, although the woman did say that I wouldn't be chased for it.
Is there some sort of template letter on here that I could use?
Should I accept this offer and would it be right that the remaining amount stays on file?
Is it possible that I could still be liable for the remaining amount? even though this should be a settlement figure, should I push for the remaining to be removed completely?
Template for letters would be appreciated.
Many thanks for any replies

cc4rhu

Personally I would not do this. They can chase for the rest in future. If you can get them to mark your file as fully satisfied then that's a different matter but none of my creditors ever agreed to.

happy_bunny_2

Partially settled is fine, as long as you have in writing it's in settlement of the account, the remainder won't be chased or sold and the amount outstanding on your report will be zero.

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

george66

Thanks for replies,
I know my debt isn't a large one, but, it is a debt that I got into and want to do my best to resolve the issue asap.

Have filled out the template letter as below, unfortunately, I can't quite manage the 50% that they ask for. Should this be OK? Anything need changing?


Mr xxxxx
xxxxxx

Dear Sir/Madam
Without Prejudice
Account No: xxxxxxxxxxxxx
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. My payment plan review is due
22nd April, I have no change in my circumstances, I can not see this improving in the near future. With
reference to telephone communication 26th March 2013 and your asking for a 50% settlement figure of £917.45p. My son has offered me a one off loan of £750, unfortunately, this offer is only there for a short while, and may not be offered again. However, I can raise £750 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 7 days of receiving your written agreement of this offer and method of payment.
I look forward to receiving your reply.
Yours faithfully
Mr xxxxx


Thanks again for replies

george66

Do you think I should try and find the rest and give them what they have asked for?
Maybe I can find something to sell

happy_bunny_2

50% is pretty good as the debt is with the original creditor.

When did you take out the account? If before 2007 worth sending a CCA request maybe.

george66

Pretty sure the account was taken out before 2007.
Just really want to get this over and done with.
My son has agreed to cover the extra for me, (providing I do his DIY for him) , so will just go ahead and send letter as below.
Unless there's something I should change?

Dear Sir/Madam
Without Prejudice
Account No: 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.
My payment plan review is due 22nd April, I have no change in my circumstances, I can not see this improving in the near future. With reference to telephone communication 26th March 2013 and your asking for a 50% settlement figure of £917.45p.
My son has offered to loan this amount to me.
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 7 days of receiving your written agreement of this offer and method of payment.
I look forward to receiving your reply.
Yours faithfully
Mr

happy_bunny_2

Seems in line with the template in the link.

Just remember to make sure all the points are covered regarding not being liable for the rest when they come back with an offer.

Something doesn't hold about this from your original post:
" they have asked for 50% as a settlement figure, and it would show as a partial settlement and the remaining amount would also stay on record, although the woman did say that I wouldn't be chased for it."

As that means they will take the 50% and then you are liable for the rest. Don't trust anything they tell you on the phone and don't be too shocked if they deny making the offer, but I hope to be proved wrong

Do update the thread when you get a response.

HB

george66

Thanks for your help and time, will send letter off as it is, if and when they come back with a response I will post their reply word for word and see what you think.
Thanks again

george66

Good morning all,
Well, after nearly 3 weeks Capital One have replied to my above letter, and to me it looks good, below is a word for word reply from them,
What do you think of it?


"Account Number: xxxxxxxxxxxxxxxx
Balance: £1,834.89

Dear Mr Xxxxxx,

Thank you for contacting us about the outstanding balance on your Capital One credit card account.
We are writing to confirm the settlement arrangement that has been agreed.

To settle your account, a payment £917.45 will need to be received by 10th May 2013. We have listed all payment information on the leaflet enclosed with this letter. Your account will be settled if the payment is received and cleared by this date.

We have provided details below on how this settlement will appear at the credit reference agencies once the account has been settled:

- If you have paid your full outstanding balance this will show as satisfied

- If you have paid less than your full outstanding balance this will show as satisfied with an additional flag of 'partial settlement'


This settlement offer is available until 10th May 2013. If the settlement payment is not received by this date your account will return to its previous status, however any option to regain use of the card in the future will be removed. Payments should continue to be made in accordance with any agreed payment plan.

Please do not use any Capital One credit cards with the above account number. This includes any held by additional cardholders. Any spending may end the settlement offer.

If you have any questions or need any help, please call us on 0800 952 4914. We are available from 9am to 7pm Monday to Friday. Please have your account number to hand.

Yours sincerely
signature here
Graham Robinson
Director of Recoveries"

Is this what I need, if so, do I just pay up and that's the end of it?

Thanks

happy_bunny_2

Does not say that the remaining balance will not be persued or sold on.

So they can do as they say, sell on the rest and you could be liable.

I would seek confirmation on the above. Due to the time, migh be worth ringing and asking to send in writing efore paying a bean.