would you accept this full and final

jules1973

Hi,

Mackenzie Hall have offered me a settlement of £1400 on a £4400 debt with NRAM. My parents will help settle it if I feel it is acceptable. The wording as follows.

REDUCED SETTLEMENT OFFER

We can confirm that our client will accept a lump sum payment of £1,400.00 as a full and final settlement with regards to the above debt. Upon receipt of the payment, our clients will update your credit file to show the account as ‘partially satisfied’ but the account will be closed with ‘zero’ balance owed.

You would not be contacted again for any of the remaining balance and we will issue a letter of satisfaction confirming the above, this letter should be retained as your proof of payment.


NRAM are named on the offer letter but the letter came as an attachment to an email with no logo on. Would I be better to get a letter through the post. The debt was originally for £8k. I have been on a DMP for 2.5years and have not made many payments in last six months or so, due to job loss.


Any advice would be appreciated.

happy_bunny_2

The wording is ok but I would rather have it in writing. Might just be me though.

cottage_retreatist

I'd rather have it as a headed letter too - before I pay. but they say all the right things - zero balance and no further contact which are the biggies.

But then I paid over the phone once negotiating a full and final and then got the letter through. This could have been a fluke - I now do everything via royal mail recorded delivery - second class obviously!!!!

jules1973

They want it by Monday so I am going to ask if I can have a letter through the post and longer to pay.

Just seems like a good offer, but is it too good to be true. I am wondering if it is unenforcable.

happy_bunny_2

jules1973 wrote: »

They want it by Monday so I am going to ask if I can have a letter through the post and longer to pay.

Just seems like a good offer, but is it too good to be true. I am wondering if it is unenforcable.

What is the account for? Loan or card?

When taken out?

Its worth asking for a letter, they will wait. Tell em its not your money and it will be offered to other creditors, if they get funny.

30% isn't a bad offer, if UE and you want to pay you might get it down a bit more.

Madhatter2

I thought if you was in DMP you could not pay 1 creditor over another? I was told its illigal to favour one over another.

Once entered all money towards your debts had to be split equally with all creditors.

I may be wrong and am genuinely interested to know

jules1973

I know you are not supposed to negotiate with 1 creditor over another if you are on a managed DMP, but we are self-managed. My parents only offered as it was such a good reduction, so I am not in a position to offer to other creditors anyway.

It is for a loan from 2004. Maybe NRAM are just trying to get rid of bad debt.

happy_bunny_2

Right ho.

You could CCA them, see what comes back. No CCA or one with errors and they are stuffed for a CCJ if defended.

If you want to pay and they get funny about sending the F&F in writing, tell them your next action will be a CCA request. That should make them think...

asmwp

I m particulary interested in this part

'Upon receipt of the payment, our clients will update your credit file to show the account as ‘partially satisfied’ but the account will be closed with ‘zero’ balance owed.'

partially settled is not the same as 'full and final' is it? Even though they say the balance would be shown as zero for them does this not mean that, in theory, someone else could come along at a later date and chase you for the remainder or is them setting the balance to zero sufficient to prevent this?

fermi

What they put on your credit file has no legal bearing on whether they can chase in the future or not. Instead it is the written terms of the settlement offer that matters, And only that.

But as far as credit files go, the ICO guidance states that:

51 There are other circumstances where the terms ‘satisfied’ or ‘settled’ are not appropriate because they do not adequately reflect the fact that lenders have been left with no choice but to accept significantly less than they were owed under the terms of the original agreement.

.......

In these circumstances, we understand a lender may be reluctant to mark the entry as ‘satisfied’ or ‘settled’. However the entry must record the position adequately, for example, by showing that no further monies are expected and the account was partially paid.

Which in practical terms means marking as partially settled or a settlement with a partial flag, and zeroing the balance.

pauletruth

when did you last pay them. MH must think they have little chance to milking you if offering you 70% off.