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Full & Final Settlement Offers - My Experience January 2021.

Options

After struggling with my mental health and with addiction from my late teens to early 20’s I completely destroyed my credit and buried my head in the sand in 2017. Many changed numbers and addresses later the collectors always finding me was taking its toll. I finally got sober in late 2018 and after working out my own personal problems in the interim it came the time to sort out my financial problems. After reading this forum since mid-December I decided to take the bull by the horns and settle my accounts. I requested my statutory reports from Experian, TransUnion and Equifax and finally got a grip on how bad things were (personally speaking, my situation may pale in comparison to others). After realising I could not pay it off with my current commitments, I decided to go the full and final offer route because all of the contact was ruining my health. I thought I would post on the forum how that has gone for me. To give you a full picture, I live in Northern Ireland. I told each creditor when I spoke to them about my mental health, that I lived pay cheque to pay cheque with no ability to maintain a payment plan and the money to make the full and final offers was from the private sale of a car I inherited. Lantern and Hoist requested proof of my health; they accepted a GP letter while the other creditors did not ask for proof.

Lowell

The first company I contacted was Lowell who held 5 of my past accounts, on my first phone call I picked out 3 debts and offered a settlement of 30% for the accounts which were as follows:

-        EE – Defaulted 11/2017 - £524.95 - Offer of 30% accepted and account closed for £157.38.

-        Vanquis- Defaulted 12/2017 - £378.79 – Offer of 30% accepted and account closed for £113.64.

-        Three Mobile – Defaulted 04/2018 - £824.10 - Offer of 30% accepted and account closed for £247.23.

The following day I called to settle the final 2 accounts, given they accepted the 30% with no push back I decided to offer the bare minimum of 10% expecting to maybe get a counter offer of 25%. However, I did not and it was accepted.

-        O2 – Defaulted 04/2016 - £521.59 - Offer of 10% accepted and account closed for £52.16.

-        Sky – Defaulted 07/2018 - £529.46 - Offer of 10% accepted and account closed for £52.95.

Lantern

Following the success with Lowell and rolling on the high of them accepting 10% I contacted lantern and offered them the same for the 2 accounts they held in my name, they were not keen on 10% and counter offered with 40%. I counter offered with 20% and with a bit of back and forth with asking managers, 20% was accepted.

-        Lending Stream – Defaulted 04/2016 - £381- Offer of 20% accepted and account closed for £76.10.

-        The Money Shop – Defaulted 11/2016 - £198 – Offer of 20% accepted and account closed for £39.60.

Hoist Finance

I again offered the bare minimum of 10% and was rejected, they made a counter offer of 50%. I said I would see if my family could help support me towards that and waited 3 days and called back and said with some help, I could offer 30%. This was again counter offered at 40%, I did the same and called back in 3 days and offered 35%. They accepted.

-        Barclaycard – Defaulted 01/2017 - £1015 - Offer of 35% accepted and account closed for £355.25.

First Trust Bank (AIB)

I went £70 into an unarranged overdraft in 2017, I ignored this and used my other current account and with fees it grew to £488. I rang and offered them the money I initially over drafted and none of the fees. This was accepted.

-        First Trust Account – Defaulted 07/2019 - £488 – Pre fees debt accepted and account closed for £71.

Mobile Money

This company did not want to entertain an offer, they did however agree to cancel all of the interest that had gathered on the account and give me a 10% reduction as a gesture of good will for a lump sum payment.

-        Log Book Loan – Defaulted 04/2017 - £1528 - £1,149 with interest and fees removed, 10% reduction then applied to this figure - Account closed for £1034.10.

So, all in all I can now breath a sigh of relief. The letters, phone calls and emails will stop and the debt is no more. I owed a total of £6388.89 and after my negotiation I paid a total of £2199.41. My sim only phone contact is up to date, I have a credit builder card that I spend around £60 on per month and settle in full at the end of each month. Hopefully within a few years I can undo the damage I done; I will never treat credit the way I did when I was a young drunk idiot.

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Comments

  • sourcrates
    sourcrates Posts: 29,225 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    edited 22 January 2021 at 3:41PM
    Options
    Hopefully you got conformation of the above in writing from each of them, agreeing that neither them, nor there agents will pursue the outstanding balances, this is vital, as otherwise they, or anyone else they sell their rights too, can come after you for the remainder, this has happened a few times in recent months on this forum.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Ricey88
    Options
    Yes, I requested confirmation via both email and letter to keep a digital record and a hard copy record of each settlement agreeing that the outstanding amount will not be persued by them or any of their agents. I have it all via email and the first letter landed through the door yesterday. I've been reading the forum keenly and got well tuned in by both the forum and the CAB in the run up to making any contact.
  • sourcrates
    sourcrates Posts: 29,225 Ambassador
    First Anniversary Name Dropper First Post Photogenic
    Options
    Excellent, well done, good result for you.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • moneyworrier2021
    Options
    Really glad you've managed to sort it mate.
    I'm down to just one outstanding debt with Barclays for a Loan i defaulted on in 2017. Currently have 8.5K still outstanding and im currently saving to hopefully offer up to 50% as a Full and Final Payment. Not sure how keen they will be on the idea but with only another 2 years left of the default on my credit file, i want to clear it to some extent.
  • NeverendingDMP
    Options
    Well done
    This in addition to being sober means you have achieved amazing things. Onwards and upwards and thanking you for sharing how you settled your amounts owed.
    Jan 18 Joint debts 35,213 - March 24 15.5k
    Mortgage Jan 18- 77224 Dec 23- just under 69k
  • Ricey88
    Options
    Thank you so much for the kind words, I lost count of the amount of times a bottle was opened over the head of these letters and now they will never be a part of my life again.

    Moneyworrier, best of luck with your offer that's fantastic that you only have the one left. I would suggest starting to negotiate at 30% if you're wanting to make a full and final offer of 50%, there will probably be some back and forth. 
  • calum555_2
    Options
    Well done Rickey thanks for sharing. I am going through the process of full and final settlements at the moment, so it’s useful information.
    Since June 2020 I have settled 6 of 9 debts. Average rate has been 50%. Ranging from 40 to 65%. But my DMP payments were always regular and fairly high, so this is about the best I can negotiate.
    unfortunately the 3 leftover are the biggest debts, but I do have a chunk saved to clear these. One is PRA they are tricky and will not go below 90%, but it’s the smallest of the 3.
    one is with a debt collection company who are still trying to comply with a CCA request after 6 month.
    but Barclays is the largest balance. I wrote to them on December 11th with an offer of 40% but have had no response.

    reading your post, it seems that you mainly called them? I think I will try the same in future. Thanks!
  • hev3049
    hev3049 Posts: 48 Forumite
    First Anniversary First Post
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    moneyworrier2021 - I offered Barclays 40% but they would only accept 50% full & final settlement, as Ricey88 said start low, good luck.

    😄


  • Ricey88
    Options
    @calum555_2 I rang every one of them and did not go with the letter route. I may be wrong but I don't think everyone is heartless, hearing a person on the other side of the phone pleading their case based on personal circumstances with the evidence there to back their story is harder to say no to than a piece of paper. It removes the human element altogether. The letter from my GP went a long way in helping the negotiations, once I said I could prove everything about my health they seemed a lot more willing to come to the lower settlement figures. 
  • Ricey88
    Options
    UPDATE
    Just an update to the thread, I had not made the payment yet to Mobile Money. I was due to make it this coming Monday. After all the phone calls I made one final attempt at an offer and again pleaded my case, this time via an email just sent to their normal customer service email. I reiterated that all I could afford was 30%. I didn't check my mail box yesterday but was delighted to today find that they conceded and accepted my offer. 

    Updated totals, £6388.89 owed and after the negotiating the total amount paid to settle my accounts is £1523.01. Result!


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