Full and Final Settlement percentages...

MKDebt

Hi All

I am in a position to offer F&F settlements to all of my creditors - any ideas at what percentage of the outstanding balance I should start the ball rolling at ?

Obvioulsy I want to save myself as much money as possible. If I start with a really low offer (40%) is it likely to annoy them and lead to them calling in the whole amount ? - or will they just say no thanks and offer a higher amount ?


The overall amount is £60000 spread between 3 DCAs and 4 CCs. Would really like to clear it all off for £40K.

Cheers

MK

floss2

Why not ring / write & ask for settlement figures, then see how that would work with your available funds....will give you an idea for starting to negotiate.

Don't forget, when you get them, they're usually valid for 28 days.

GeorgeUK

This may help

http://www.insolvencyhelpline.co.uk/debt_factsheets/full_and_final_settlement_offers.htm

Just make sure you don't send any money until you get it in writing.

You could do the calculation on less that the 40k for a bit of manouvering room, but make sure they know they are not the only debt if they try to make you pay the full amount.
Do nothing unless any offer states clearly it is full and final - otherwise they may try to say it was a partial offer.

Conor_3

In addition to GeorgeUK's advice about making sure they know they're not the only debt, personally, I'd kick them in the balls with the first offer and go in really low such as 25-30%. Yes it is completely unrealistic and you're likely to get turned down but their counter offer isn't likely to be as high as if you'd offered 66% at first. Then when they come back with a figure, go in 10-20% below that and see if they'll budge.

500Triumph650

My wife has just had 24% accepted by Capitol One. DLC and CL finance have refused the same percentage so they have now been sent CCA letters. They will also be told in due course that other creditors have accepted 24%.

stapeley

I would say ,depended on the type of debt owed and to whom. If you are in default and the debts are with DCA ,s . Why not go the CCA request route first ? Lots of people are finding these DCA have not got true copies of Assignment or Consumer Credit Agreements and therefore the accounts are unenforceable in law . At least it will ensure you are paying the correct people ,and may save you a load of money . good luck

fatbelly

Credit card companies often sell the debt on for figures in the low 30s% - I agree with Conor that 25-30% is a good starting point. You can phone them repeatedly to ask them if they've had any further thoughts on your offer - adopt their harassment tactics! But any agreement must be in writing.

stapeley

hello again, no point in ringing them , you only get to talk to a operator. They will not be able to say yes or no . You should only deal with it by letter .

xgingerx

Hi MBNA offered to settle a 4960 debt for 1724 - which is approx 35 %

Citifinancial offered to settle 8,000 debt for 4700 - approx 59%

Just to give you an idea