Advice please on repaying debt?

samantham06

Hi guys just needing some advice please before I make a decision as to whether to pay off a debt.
I have a debt from 2010 with wescott, which currently stands at £1396.00. I am currently paying £5 a month off this, as I dont have alot of disposable income.
However I have managed to save £500 and rang them to offer this today.. which they have accepted as a partial repayment which will apparently clear the debt?
Now im not sure what percentage this is, but is this a very good discount? and should I pay this off? or am I likely to get it lower?
Advice needed please as still £500 is alot of money to me.
Thanks in advance.

nicp60

Hi there,
I think it's a great deal to be honest. I would get a confirmation in writing before you pay them anything. You need them to confirm that they payment will constitute a full and final settlement, and that they won't pursue the debt any longer as it will be settled and this will be reflected on your credit file.

Tixy

Definitely write to them with the offer and get written confirmation that the money will be accepted in full & final settlement of the debt. They may only agree to enter as a partial settlement on your credit file, but you do need confirmation that it is F&F.

Useful template letter and a factsheet on what to check for on the national debtline website

samantham06

thanks for that, they have not said anything about it being full and final- just that it will be marked as a partial resettlement as its not the full amount, and therefore will be marked on my credit file as "partially resettled?" Is that the same thing? they did say that I will recieve no further contact.

Tixy

No. you need written confirmation from them that your offer will be accepted in full & final settlement.
Otherwise they may continue to chase you and you will have no proof that you don't owe the remainder of the money, or you may find that you hear nothing for a year or so and then a new debt collector chases you for the rest of the debt.

[Deleted User]

they might accept your offer as 'partial payment', and then further on a few months they will have sold on the remainder of the debt to a new collection agency, and you will be chased all over again. Only pay if they accept it as 'full and final settlement' in writing. I would also add, why not put the £500 away for an emergency fund; if they were happy with £5 per month, why try and fix it ?

samantham06

i have spoken to them twice now and told them that I need in writing that my offer of £500 is accepted as full and final payment, but they have said they cant do this as its not "a full payment".
They are sending me out an email stating that the £500 will be a partial repayment of the debt and will settle the debt. And that from now on I will not owe anything to the original creditior (lloyds).
Is this okay? as confused she said they never send out letter saying full and final when you pay the balance off at a reduced rate.

Tixy

I wouldn't settle for an email or that wording. I would start again by sending your proposed settlement offer in writing to them.

Have a read of this http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

If you are unsure of any wording on a letter from the creditor then I'd recommend calling national debtline for specific advice.