full and final settlements

seeking_a_quick_solution

Hi all, i have written to a few dca's offering full and final settlements, i have had replies from them accepting but just need to know that the way they are worded means full and final and the matter will be over. Below is the reply i have had word for word.

PAYING OFF YOUR OUTSTANDING BALANCE.
we are pleased to confirm the arrangement you have made with us to repay your outstanding balace has now been set up on our system.

DETAILS OF ARRANGEMENT
you currently owe £2300
Settlement amount £500
Payment date to be on or before 03/07/2015.

TERMS OF THIS ARRANGEMENT

Our arrangement with you to clear this debt means that we must recieve your £500.00 as settlement on or before the agreed date of 03/07/2015. That means the money must have cleared in our account by that date. You should therefore arrange to transfer the money from your account or make payment in advance of that date so it has time to clear.

WERE HERE TO HELP

once payment has cleared we will inform the credit reference agencies that your account has been settled and your credit file will be updated accordingly.

That is the letter pretty much word for word. Does this mean its full and final?

Thanks.

Meatloaf1981

They are accepting your offer for final settlement, but it will only be marked as partially settled on your credit report, you can bet on that. They won't be chasing you any further for it though.

seeking_a_quick_solution

The debts will all be 6 years old in 2016 February i think, so they will drop off my file, this wont affect them dropping off will they if its partially settled.

National_Debtline

Hi

If you have a default on your credit file for the debt in question it should be updated to partially settled and then drop off your file after 6 years in the normal way.

James
@natdebtline

seeking_a_quick_solution

Hi james, thank you for your reply, is the way letter worded standard of a company accepting it as full and final and they are not going to come back at a later date claiming it was a payment towards the debt.

National_Debtline

I couldn’t say whether it’s standard as I haven’t seen enough settlement letters personally but they’re referencing your arrangement as a means to repay your outstanding balance, and then detail this arrangement with your settlement amount.

Also, in the terms of the arrangement section they specifically state that the arrangement will clear the debt.

I don’t see how they could claim this is anything other than final.

There is a huge full and final thread here which you might find useful:
https://forums.moneysavingexpert.com/discussion/115430


James
@natdebtline

glentoran99

Meatloaf1981 wrote: »

They are accepting your offer for final settlement, but it will only be marked as partially settled on your credit report, you can bet on that. They won't be chasing you any further for it though.

Not necessarily I settled 3 and only one marked as partial