Full & Final settlement options.

Welshie13

Hi
I have been in a DMP with SC for a little over 2 years.
I started with £22k debt and I'm now down to £10k.
Both creditors defaulted me, one account is now with Cabot and the other is with HSBC repayment services.
I owe £8k to HSBC and £2k to Cabot.
Over the next year, I will be in a position where I can offer full and final settlements.
Out of interest, what are your opinions on what amount I could offer each lender? I've never done this before so some assistance would be much appreciated

sourcrates

Ideally you need both accounts to be with debt collectors, simply because they pay pennies in the pound for these accounts, and can afford to take a lower offer and still make money.


In the months prior to making your offers, reduce your payments to token amounts, invent a reason if you have too, CCA should be sent as soon as possible, accounts that cannot produce compliant paperwork often get settled with bigger discounts.


National Debtline have a very good template letter on there website to use for making offers, everything should be done in writing, to be legally binding, and so you have a paper-trail, last thing you want is to settle the debt, then have some oik come chasing the remainder of the debt 6 months later.

fatbelly

My most recent attempt with HSBC failed repeatedly over a long period, though I was never sure if that was policy or incompetence on their part.

It's a shame because that's your biggest debt.

If either of them are cca-regulated, so loan/credit card but not overdraft, then it wold be worth doing a formal request for a copy of your agreement.