full and final settlement

emma08722148

Hi I'm kinda new to this site but needing some advice..I started a debt management plan almost 3 years ago and I have about £7000 to clear...£4500 on one card and £1500 on 2 other separate cards ...I have been lucky enough be given £2000 to help clear my debts quicker and I'm wondering if my creditors for the £4500 card would accept this payment..I'm currently paying £150 per month but struggling as my car is about to pack in and my house seems to have one thing after another going wrong with it..is this enough to settle one card or maybe all 3 I'm living in hope here ..can't anyone help??

jonesMUFCforever

Get advice from whoever is running you DMP.
To me you may find using the £2k for a newer car might be a better option as you will probably find it difficult to obtain new credit.

emma08722148

Thanks :-)I'm just trying to get rid of this debt hanging over me as quick as I can ..Will never take finance again anyways... if I haven't saved for it I'm not buying it

InsideInsurance

You'd need to be very luck to get it accepted as a full and final settlement but its possible they will accept it as partial and final settlement.

The difference between the two is only what shows on the CRA file, the final element still means the debts closed but they notify others that it wasnt fully paid off.

The people running your plan will know your circumstances in detail and the tendencies of the companies you have debts with to be able to give best advice on how far the £2k can go to closing matters.

Assuming you need the car for work then as above, you may need to question what, if any, interest you're currently paying on the debts as you can be sure that if you were able to secure finance for a replacement vehicle it will be sky high

emma08722148

Thanks.. I didn't really think I'd get a settlement for it all it jus pains me that I will have it hanging over me for another 4 years..I think I will just keep paying what I'm paying and put the money in the credit union till it does pack in ..here's hoping there's a good bit of life in the car yet :j

InsideInsurance

emma08722148 wrote: »

Thanks.. I didn't really think I'd get a settlement for it

You may well get a final settlement for it, it depends on how the accounts been run, the lender etc.

I was in the odd situation a few years ago, I'd had a joint loan and current account inc overdraft with my then partner. When we split up I spoke to the bank and was told to send a letter asking for them both to be put in my name alone.

Did this, never got any form of acknowledgement or query but my current account statements start turning up in just my name so thought job done. Continue using the current account and paying the monthly payments off the loan.

Fast forward 2.5 years and I get a letter from the bank asking me to phone them. So call the number and get told that both loan and current account had transferred to their bad debt team. So speak to them and they say that the loan was still in joint names and due to "something" to do with my ex they had defaulted both the loan and my current account despite the fact both were in perfect standing.

Obviously said I'd complain but asked what they'd accept as full and final settlement. For the overdraft, they said as it was only in my name and in good standing it had to be the full amount, about £100 if I remember. For the loan however because my ex's name was still on it rather than the £800 outstanding they'd accept £600 as final settlement, they also said it was "that high" because it was fully up to date and would have been lower if I was behind on the payments.

The defaults were never reported to the CRAs, it was a F&F settlement and so never had a negative impact on me but I simply for a 25% discount on what I had to pay because of "something" my ex had done and as the bank had failed to remove her from the loan.

Unfortunately they initially reported it as a P&F settlement but a series of complaints and another £200 compensation finally got it corrected to F&F as had been agreed with them on the phone.