Capquest Full & Final Settlement offer...

ElaineDarby1984

Trying to help my Mum sort out one of her debts and need some advice. She received a letter saying about some time passing since they last heard from her (2014) and the debt (a credit card) had now gone from about £299 to around £379 with court costs & fees but there was a settlement available on the account.
So I asked my mum to phone & offer around £200/250. She told me today that they'd accepted around £279 & she'd send payment by the end of the week & then they'd send a letter confirming the account settled. Now I'm wary cos I thought they'd send a letter confirming the new amount & then my mum could send payment via cheque. But I'm thinking they could still chase her for the rest of the money or even add more on.
What's the best thing to do? Just send the cheque and hope it's settled (should she also write a letter accompanying this) or should she write or call again asking for confirmation first? 😕 or could they revoke this offer if she does this.

National_Debtline

Hi Elaine


Your mother should absolutely insist on written confirmation of the following before making the payment if she wants certainty:


- That the account will be marked as "settled" on her credit file; and


- That no remaining balance will be chased and/or sold on to other debt collection agencies.


Otherwise, she runs the risk of her payment simply being treated as a downpayment on the full balance rather than a full and final settlement - after all, neither you or I know exactly word for word what was said during her conversation with the creditor, and it may be that her understanding of what was agreed differs from theirs. I would suggest using a tried and tested template like those available in our fact sheet:


https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx


Dennis
@natdebtline

ElaineDarby1984

National_Debtline wrote: »

Hi Elaine


Your mother should absolutely insist on written confirmation of the following before making the payment if she wants certainty:


- That the account will be marked as "settled" on her credit file; and


- That no remaining balance will be chased and/or sold on to other debt collection agencies.


Otherwise, she runs the risk of her payment simply being treated as a downpayment on the full balance rather than a full and final settlement - after all, neither you or I know exactly word for word what was said during her conversation with the creditor, and it may be that her understanding of what was agreed differs from theirs. I would suggest using a tried and tested template like those available in our fact sheet:


https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx


Dennis
@natdebtline

Thank you for the info. If she has already discussed the letter/offer like today on the phone, should this be mentioned in a letter ?. For example mentioning the call & the amount offered. Just asking for confirmation that it is indeed a full & final settlement? Just want to word it right.

sourcrates

ElaineDarby1984 wrote: »

Thank you for the info. If she has already discussed the letter/offer like today on the phone, should this be mentioned in a letter ?. For example mentioning the call & the amount offered. Just asking for confirmation that it is indeed a full & final settlement? Just want to word it right.

Where debts are concerned, EVERYTHING MUST be in writing only.

Follow that simple rule, you can't go wrong !!

The ND template letter is specifically worded so that you won't be chased for the remaining balance.

martinthebandit

sourcrates wrote: »

Where debts are concerned, EVERYTHING MUST. Be in writing only.

Follow that simple rule, you can't go wrong !!

...even more so if Capquest are involved.

ElaineDarby1984

Is there anyone out there who could word a letter for me? I can use the full & final settlement templates but I how do I word mentioning the offer of £279? I'll have to write this out cos my printer is broke .

sourcrates

ElaineDarby1984 wrote: »

Is there anyone out there who could word a letter for me? I can use the full & final settlement templates but I how do I word mentioning the offer of £279? I'll have to write this out cos my printer is broke .

Dear capquest,


Without prejudice

Account No:


I am writing about the money which you are claiming on the above account.

I can confirm that I am unable to pay the money which I owe in full.

However, I can raise £279 as agreed on the phone, and I want to offer this as full and final settlement of the account. I am making this offer on the clear understanding that, if you accept it, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability.

If you accept this offer, please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed.

I can pay the amount I have offered within of receiving your written agreement of this offer.

Please give me details of how I can pay.


I look forward to hearing from you.

Yours faithfully

Just send them that, get them to confirm in writing, job done.

ElaineDarby1984

sourcrates wrote: »

Dear capquest,


Without prejudice

Account No:


I am writing about the money which you are claiming on the above account.

I can confirm that I am unable to pay the money which I owe in full.

However, I can raise £279 as agreed on the phone, and I want to offer this as full and final settlement of the account. I am making this offer on the clear understanding that, if you accept it, neither you nor any associate company will take any other action to collect or enforce this debt in any way and that I will be released from any liability.

If you accept this offer, please confirm that you will mark my credit reference agency file to show that the above account has been paid and closed.

I can pay the amount I have offered within of receiving your written agreement of this offer.

Please give me details of how I can pay.


I look forward to hearing from you.

Yours faithfully

Just send them that, get them to confirm in writing, job done.

Thank you so much for that. Much appreciated.

ElaineDarby1984

On the letter it says that if she doesn't pay the agreed amount it will be sent back to collections. Will the debt get bigger this way? And that if they do receive it they mark the account as cleared & closed.

National_Debtline

Hi Elaine


It doesn't really mean a great deal if the debt goes back to collections - your mother still has the same options on the table i.e. negotiate, offer lump sums etc etc.


As this debt has been dormant for two years it is unlikely that they will be adding any further charges on now. You mentioned court costs in your first post - if this debt has gone as far as court already, there definitely won't be any further additions after that unless they go back to court (again, unlikely).


Dennis
@natdebtline