Full & Final Settlement Advice

Laura2000

Hi, We recently negotiated a Full & Final settlement offer with our creditor. We received their written confirmation today and I want to make sure there is nothing in the letter that would cause us problem in the future and we'd really appreciate your advice. Our creditor is called Arrow Global and their external agents who we have been dealing with is Fidelite Credit management, previously known as Scotcall. This is a joint debt and Scotcall was a little iffy about including both our names in the letter and the letter is addressed only as dear Mr....... I've never heard of the term "FOA" in a letter before. Is FOA of Mr.... &Mrs..... sufficient enough to show that both of us will be resealed from any liability? Also they say that the remaining balance will show as unpaid, should it not be zero? and does it mean that they could sell the rest of the debt to another creditor who could pursue it in the future. The letter is only signed by an Agent's name. There is no actual signature or stamp. I've copied their letter for your considration bellow:

FOA of Mr...... & Mrs......

Our Account number:.....
Client account number.......
Current balance........

Dear Mr........,
We can advice that our client Arrow global will accept a settlement of £........ for the HSBC account that they own. Can we please that when making a settlement payment and where your credit file is updated by our client this will show as partially settled/satisfied as oppose to showing as settled/satisfied if you paid the balance in full. This means that while you will not be perused for the remaining balance this amount will show as unpaid on your credit file.

Thank you very much in advance for your advice.

peteuk

Im no expert, so hopefully someone else can advise you further, but for me the main thing to understand is below.

Laura2000 wrote: »

that when making a settlement payment and where your credit file is updated by our client this will show as partially settled/satisfied as oppose to showing as settled/satisfied if you paid the balance in full.

Im not sure if you are familiar with your credit score, but a default will stay on there for 6 years. So even if you pay it in full, anyone searching your credit file will see the default.

If paid in full then it will show paid in full
If you pay a full and final it will show as partially settled but will indicate no further debt owed.

Im not sure how different organisations view defaults and partial settlements.

Good luck with it all (Sorry if Im teaching you to suck eggs there)

National_Debtline

Hi Laura


I would certainly be insisting that any acceptance of a lump sum settlement either be addressed to the two of you, or that you are each given individual confirmation that the offer is accepted. You don't want to leave any scope for them to pursue you personally in the future if the debt is only marked as satisfied on your husband's file.


Re: "FOA", I can only assume that this was supposed to read "FAO" i.e. For attention of... Maybe someone else will correct me, though.


It is better to take time getting this watertight, rather than rushing to grab any offer on the table right now if it is ambiguously worded. There is no time limit on agreeing such a settlement, just whatever you and the creditor choose to negotiate. You may find our guide and templates useful:


https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx


Dennis
@natdebtline