First Step to my Debt Free Life - Full & Final Settlements

StevenHendy94

Hi all,

New to this site.

I am currently looking into paying off my debts in Full & Final Settlements and wondered if anyone had any advice or experience with the following companies? (most are with debt collectors so will update which collector each is with shortly).

Capital One £369 - Mid 2015
118 118 Money £3698 - End 2014 / No payments made
VW Financial Services £2750 - July 2015 (Was lead to beleive i was doing a VT not a VS)
Wonga £205 - 2014
Barclays (Overdraft) £1070 - 2014

I would (obviously in a dream world) like to settle these for around 20-30% as that is all I have the finances to do. Any advice on getting these companies to drop to that level?

Also, are you able to negotiate with them to mark your credit file differently. (settled rather than satisfied).

What time frame should i expect, from now to making the payment?


Any and all help and advice would be much appreciated!

sourcrates

No particular experience with any of those companies myself.

General rule is the older an account is, the more its been passed around debt collectors, the better deal you can obtain.

Best deals are done when debts have been sold on to companies such as Lowell or Cabot, they regularly offer around 60% off, of course it also depends on your circumstances, and how likely they are to be able to recover the debt by other means.

Anything is possible with negotiation.

National_Debtline

Hi

It’s an informal negotiation so offers will be considered on a case by case basis. Start your offers low, as you can always increase them if necessary.

This factsheet gives an overview of full and final settlement advice and links to a template letter you can use to make offers. Make sure a creditor confirms they’re accepting your settlement offer in writing before you make the payment.

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

James
@natdebtline

StevenHendy94

Thank you both.

I have called 118 and they have offered to settle the account for £1000. i have agreed and they have emailed the offer. the wording causes a bit concern so I have emailed back asking to confirm it closes the account etc.

Is an email enough proof for the account being settled or should i still get all the offer in a letter.

they have advised that it needs to be paid by monday. 5 days and few hours basically. dont feel thats totally fair. But I plan to pay it now anyway.

sourcrates

StevenHendy94 wrote: »

Thank you both.

I have called 118 and they have offered to settle the account for £1000. i have agreed and they have emailed the offer. the wording causes a bit concern so I have emailed back asking to confirm it closes the account etc.

Is an email enough proof for the account being settled or should i still get all the offer in a letter.

they have advised that it needs to be paid by monday. 5 days and few hours basically. dont feel thats totally fair. But I plan to pay it now anyway.

As long as they agree the amount you pay will close the account, and neither they, nor there agents will chase the remaining balance, and get this in writing, that should be sufficient.

StevenHendy94

Update: 118118 Money - Cleared for £1000.
Capital One - Refused any form of settlement other than full amount, will try again.
Wonga - In the process of moving DCA so will need to wait to find out who has the debt.
Barclays - Will contact today, was offered a settlement of £321 from a DCA but now back with Barclays so hopefully they still allow that.
VW - arguing, getting legal advice as I found out i was able to VT it, as had paid 50.01% of total amount, yet they mislead me into VS, meaning I am liable for the remainder.

StevenHendy94

UPDATE: Barclays settled at £236.

sourcrates

StevenHendy94 wrote: »

UPDATE: Barclays settled at £236.

Well done, good result !!!

KID77

Well done on Barclays, we have overdraft debt with them too. Can I ask when you defaulted with them and if you have been on a dmp?
Thank you x

anna_1977

Was that straightforward Barclays or Barclays Partner Finance?

Thanks

StevenHendy94

Thanks KID77.
My Barclays overdraft defaulted in the second half of last year, so not long ago. been to westcot and Pga but got sent back to Barclays. Barclays were really helpful. I stated 236 and they didn't put up much of a fight.

good luck on yours!