Settlement offers on DMP - partial settlement?

Lara882

I sent off full and final settlement offers regarding credit card balances to Halifax, Moorgate, Lloyds and Barclaycard last week. I have been on a DMP through Step Change since end of 2009. have approximately 6 years left.

I owe £11,000 and could raise £2500 (22%) lump some to make offers. The settlement offers (which all requested full and final settlement) were as follows:


Halifax 52% of debt - offer of £1300 (amount owed £5854, default registered in 2012)
Lloyds 26% of debt - offer of £650 (amount owed £2967 default registered 2011)
Barclays 18% of debt - offer of £450 (amount owed £2028, default registered 2010)
Moorgate 4% of debt - offer of £100 (amount owed £496, no default registered, recorded as being on DMP)


All all have declined except Moorgate which are still reviewing the offer, they have given me figures to show the minimum they would accept which are as follows:

Halifax £4330
Barclays £1400
Lloyds £2200

All are saying they will under no circumstances accept these as full and final settlement. All have said they will go down as partial settlement (though they assure me neither they nor a third party will be able to pursue me for the outstanding amount and accounts will close)

How do others seem to get full and final settlements? I'm hitting a brick wall. I knew they would initially decline but had hoped that, say for example, if Halifax and Lloyds declined then I could use lump sum available to negotiate with Moorgate and Barclays to gain full and final settlements. However they are both saying they do not and will not agree full and final settlement unless the balance is paid in full. Are they just trying to get me to make a higher offer or do they mean it? What should I do if I agree to pay what they want but they still only offer partial settlement?

Any advice would be gratefully received, I'm desperate to try to improve my financial situation, I don't want to make more mistakes by accepting something that will have further negative impact on my credit.

sourcrates

If you make a partial offer to settle a debt then it is recorded as such, they are correct in this yes, if they had accepted your offer, you would get them to agree in writing that this would settle the account and you would not be chased for the remaining balalce.

Lara882

ok great, so what they are offering is acceptable? I've just seen a lot of info about pursuing full and final settlements only.

sourcrates

Lara882 wrote: »

ok great, so what they are offering is acceptable? I've just seen a lot of info about pursuing full and final settlements only.

Different names, but mean the same thing, when you offer to settle a debt for a reduced amount, its recorded as a "partial settlement", because you haven't paid the full amount outstanding, the only way to have a debt recorded as "settled" is to repay the full amount.
Anyone who settles a debt in this way will have partial settlement recorded on there credit file.