Full and final settlement offer

momisa

Hi

I'm going through the process of offering 3 Creditors (Debtors) a full and final settlement offer which is calculated fairly and gives them 59% of the balance.

One has responded saying:
"we cannot consider a full and final settlement unless the offer of payment is at least 95% of the account balance. We could consider a Partial Settlement. This would mean your account would register as a Partial Settlement with the Credit Reference Bureau for six years; however, we would not take any action to recover the remaining balance.

Please call our Customer Assistance Department on ..."

This is the first response I've received. I'm thinking that I shouldn't respond until I've heard from the other two. Should I phone them? A friend is helping me resolve my debts and all letters were signed by my friend and accompanied by an agreement from me.

Has anyone else any experience of this?

Any help appreciated?

rog2

Hi momisa - Have you been speaking with one of the debt counselling charities? There is some good advice on National Debtline - which is Free, Confidential and Professional.

I have two observations:

1. It is quite normal for creditors to refuse your first offer, as they will, naturally, try to push for a figure as close to 100% as possible. I would contact the creditor with YOUR final offer - certainly no-where near 95%. I would also state that the funds, with which you are making this offer, will only be available for a limited time (say 14 days) and that you will, after this time, no longer be in a position to make any Full and Final Settlement offers.

2. DO NOT ACCEPT THEIR OFFER OF 'PARTIAL SETTLEMENT' - Insist that you will ONLY pay them if the offer is accepted in FULL AND FINAL SETTLEMENT. Accept NO other wording, please.

ciarasdreams

rog2 wrote: »

Hi momisa - Have you been speaking with one of the debt counselling charities? There is some good advice on National Debtline - which is Free, Confidential and Professional.

I have two observations:

1. It is quite normal for creditors to refuse your first offer, as they will, naturally, try to push for a figure as close to 100% as possible. I would contact the creditor with YOUR final offer - certainly no-where near 95%. I would also state that the funds, with which you are making this offer, will only be available for a limited time (say 14 days) and that you will, after this time, no longer be in a position to make any Full and Final Settlement offers.

2. DO NOT ACCEPT THEIR OFFER OF 'PARTIAL SETTLEMENT' - Insist that you will ONLY pay them if the offer is accepted in FULL AND FINAL SETTLEMENT. Accept NO other wording, please.

Can I ask why partial settlements are not good because I have just cleared a few debts and each creditor told me that they would only mark each as partially settled?

sammy115

I think thats because if it is marked as only partially settled they can come back for the rest at some point. Hopefully someone will clarify this.

rog2

sammy115 wrote: »

I think thats because if it is marked as only partially settled they can come back for the rest at some point. Hopefully someone will clarify this.

That is absolutely true, sammy - whilst all the promises, that they won't chase for the balance, are very tempting (and designed to be) there HAVE been some horrific stories of poster who have accepted these 'promises' yet found themselves hounded by dca's later on.
I have to go out for a bit, but will try and post a link to one such thread, later on.

momisa

I got some advice from the CCCS and a friend has agreed to help me sort my debts out.

Whilst the first response appears to encourage me to phone them I'm reluctant to do so. I think it would be better to write another letter and use your suggestion rog2 and give them 14 days and make it more clear that I need a F&F settlement.

Many thanks for your advice - these letters just make me nervous!!