Full and Final Payment Offer - More information required

debt_free_delilliah

I have been in a debt management plan since August 2018. I originally had debts of circa £37k with seven different creditors. As at September 2024 my debts are down to circa £15.5k and just four creditors. Defaults for 3 of the 4 creditors will fall off my credit file between February and April next year. The other default will not fall off my credit file until November 2026. I live with my partner and we have a joint mortgage (taken out before my DMP).

In July I wrote to my smallest creditor, which has a balance of circa £1.2K offering a full and final settlement of £400, using a pro-formal template etc. This debt is currently managed by Wescott Credit Services on behalf of Santander. I work for the NHS and planned to use the backpay I'll receive from the 2024/25 pay award to pay off the Santander/Wescott debt.

Wescott have now written back asking lots of questions about whether I am offering to pay other creditors, what is the total amount I can offer for settlements, where is the money coming from, whether I own my own home, whether I am working etc. 

I've searched and searched these forums, but I cant seem to find any discussion about this next stage and what people say and do after they have initially written to the creditor to offer a full and final payment. Do you provide all of this evidence back to them? Will they care whether or not that I am only making a full and final offer to them and not my other creditors at this stage - because I'm not. If they don't approve the settlement I will just carry on paying the debt via my DMP.

Not sure if this is relevant or not, but sadly, my mum passed away earlier in the year and her estate is currently dealt with by solicitors as it goes through probate etc. Early next year I will receive a cash sum that would enable me to pay off all my creditors. I guess I am hoping to test the water a little by paying off this creditor now, with a view to paying off all my debts in the next 6-9 months via full and final settlement. 




 

 

RAS

You be better waiting until the debt companies offer a settlement. 

ManyWays

debt_free_delilliah said:

In July I wrote to my smallest creditor, which has a balance of circa £1.2K offering a full and final settlement of £400, using a pro-formal template etc. This debt is currently managed by Wescott Credit Services on behalf of Santander. I work for the NHS and planned to use the backpay I'll receive from the 2024/25 pay award to pay off the Santander/Wescott debt.

You may have more luck writing to a debt collector that has purchased the debt. 

Rob5342

RAS said:

You be better waiting until the debt companies offer a settlement. 

That's what I would suggest. If you stop paying then completely then at some point they will start offering you a discount. 

debt_free_delilliah

Thanks for all your responses. Can I just check, are you suggesting that I stop paying them so they offer me a discount because the default's are about to drop off my credit file soon?

It kind of sounds like what I really need to do is to end my debt management plan with StepChange and then self manage for the next 3-6 months until I have funds to finally pay them all off (hopefully at a discount) once I receive my inheritance.

jaxsmar

Just reading your post did you make any progress? 

Stevev99

Ive literally just done all this, been in a DMP for about 3 years, came into some money and successfully managed to have the 8 debts that totalled £37k still, paid off for about half.
I just rang all the agencies and spent a long time on the phone which was worthwhile although PRA didn’t budge as usual.

jaxsmar

That's amazing well that's a success story well done
Looking at previous posts PRA aren't very forthcoming in giving reduced percentages. You must feel like a heavy weight has been lifted off your shoulders. @Stevev99

debt_free_delilliah

jaxsmar said:

Just reading your post did you make any progress? 

No, in the end I decided to send off CCA requests which put all of my accounts on hold. Three are still outstanding and I got a response about one today but I have no idea if what they have sent me is is actually the CCA. 

I have now received an initial/part payment in relation to my inheritance which means I can now pay off all the debts in full. If nothing comes of the CCA requests I'll try again with trying to settle for reduced amounts.

RAS

Can you share the response, but redact the personal information? Then folks can help you decipher the situation

jaxsmar

@debt _free_delilliah looking at other posts they aren't easy to understand perhaps as @RAS suggested post and see if any light can be shed.
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