Settlement Offers

Saab123

Hi all,

I have several creditors dating back several years and recently i have come into some money so i have started to make full and final settlement offers. The first reply i received is a letter asking me to send a list of statement of earnings/ income and expenditure before they will make a decision on whethere they will accept my offer. I am not sure what to make of this as the form they have sent me looks more like it is a way for them to determine how much i could pay each month rather than to accept my offer. As it stands i am not intending to reply to this, however does anyone on here have a similar experience and if so what did you do?

Ben75

Hi Saab

How long is it since you've made payments on the debts or otherwise acknowledged them, If more than six years they will be statute barred.

I've settled two debts for 40%, on both occasions I was in payment arrangement with them based on my income expenditure statement I'd sent them within the previous year. I was paying each of them relatively small amounts at the time. I would expect that if you can demonstrate that it will take a long time for them to receive the payment you are offering, it will be more appealing.

Best wishes

Ben

National_Debtline

Hi Saab123,


The most likely reason for the request for a SOA is what Ben75 has mentioned above and that the creditor is weighing up how long it will take them to recoup 100% of their money monthly versus your settlement offer. You are not obligated to send this, however, you will probably find that the negotiations grind to a halt if you don't. As you have wrote to them with a settlement offer you will have now, realistically, acknowledgement the debt. That acknowledgement needs to be factored in to any consideration of the debt being statute barred and how you would deal with the debts going forward if you cannot reach a settlement.


Full and final offers are completely discretionary and the creditor is not obligated to consider / agree to them. If you would only be able to make minimal payments per month to the debts then it is unlikely the SOA will cause any harm to your settlement negotiations. Good luck,


Laura
@natdebtline

Ben75

Just to note, if you headed your letter with the term Without Prejudice then legally speaking you have not acknowledged the debt. Without this, then I think you have.

Saab123

Hi all,

Thanks for the advice. I did head the letter 'without prejudice' so that is a good start for me. I don't understand the statute barred rules so i will do some more research on this. Based on your advice i will return the soa form and take it from there. I made a similar offer to Barclays and all they have done is pass me on to a debt collector!

fatbelly

Saab123 wrote: »

Hi all,

Thanks for the advice. I did head the letter 'without prejudice' so that is a good start for me. I don't understand the statute barred rules so i will do some more research on this. Based on your advice i will return the soa form and take it from there. I made a similar offer to Barclays and all they have done is pass me on to a debt collector!

Sending a financial statement can constitute acknowledgement.

Look into the rules or ask questions here before you do anything.

Why have you changed from 'i am not intending to reply to this' to 'i will return the soa form'?

Ben's advice is correct - the reason the National Debtline standard letter is headed 'without prejudice' is so that negotiations do not constitute acknowledgement.

If your soa backs up the case for them accepting a lump sum, and doesn't restart the clock on a debt about to go statute barred, then there is logic for doing this. If it's not in your interest, don't. If unsure, don't.