Is Accepting A Part Payment Legally Binding?

dami150

I have accepted a part payment of £3024 out of a claim of £5345 from the Halifax.

I thought that I would give them a call to see if we could settle on the remainder before filing a claim. I spoke to someone who was adamant that the money I'd accepted was a "full and final settlement". When I said that I expected them to say that she got a bit upset. Her arguement was that as I'd accepted the payment it was legally concluded and they would contest any claim.

I'm pretty sure that's nonsense but I thought I'd get some reaction from fellow posters before taking the claim on.

jojo2525

you can accept as part payment and still go on to court for rest - just make sure you inform both the court and the bank of your intentions

jojo2525

Twinkly

dami150 wrote: »

I have accepted a part payment of £3024 out of a claim of £5345 from the Halifax.

I thought that I would give them a call to see if we could settle on the remainder before filing a claim. I spoke to someone who was adamant that the money I'd accepted was a "full and final settlement". When I said that I expected them to say that she got a bit upset. Her arguement was that as I'd accepted the payment it was legally concluded and they would contest any claim.

I'm pretty sure that's nonsense but I thought I'd get some reaction from fellow posters before taking the claim on.

You are probably aware, but it bears saying for the sake of anyone who doesnt know, this is the reason people are advised to accept part payments in writing as 'part payment without prejudice'. This ensures that the remainder of the claim is not compromised should the matter end up at court.

Unless you signed an acceptance letter whereby it was stated in writing that you accepted any payment in 'full and final settlement' then no, it is not legally binding. I would check over any paperwork just be absolutely sure you didnt miss anything.

dami150

Twinkly wrote: »

You are probably aware, but it bears saying for the sake of anyone who doesnt know, this is the reason people are advised to accept part payments in writing as 'part payment without prejudice'. This ensures that the remainder of the claim is not compromised should the matter end up at court.

Unless you signed an acceptance letter whereby it was stated in writing that you accepted any payment in 'full and final settlement' then no, it is not legally binding. I would check over any paperwork just be absolutely sure you didnt miss anything.

No I didn't sign anything, here's what the offer stated :-

"Finally, I would like to explain what accepting my offer means to you. This offer is a goodwill gesture and is in full and final settlement of your complaint against the Halifax.

To accept this offer you do not need to do any further action as the payment will be credited to your account within the next 14 days".

I guess my next move is to confirm that I accepted the offer "without prejudice" and continue with the claim for the remainder of the amount plus interest.

bengal-stripe

You cannot accept the offer.

This offer is a goodwill gesture and is in full and final settlement of your complaint.

If the money is in your account already, you have accepted it as a full and final settlement. You have to decline it, if the bank still puts the money into your account, then, and only then, can you inform them that the payment is “without prejudice”.

dami150

bengal-stripe wrote: »

You cannot accept the offer.


If the money is in your account already, you have accepted it as a full and final settlement. You have to decline it, if the bank still puts the money into your account, then, and only then, can you inform them that the payment is “without prejudice”.

I'm pretty sure that's not true as I'm sure I've read many cases on the forum where people have accepted a part payment offer and then gone on to successfully claim the remainder plus interest.

I'm just looking for a concensus of opinion here.