Partial Settlements

chrisbee_2

has anyone ever partial settled any of there debt ????? i.e A smaller amount has been agreed and accepted as full or final settlement of the account ?

Q) by doing this has it affected you obtaining credit .....

maddysaver

I'm having a bit of a 'mare trying to do this currently!

It depends on the situation. Are these debts you have defaulted on?

gibbyni

I plan to do the same in about a year, i did one a few months ago, cant remember who it was but it had went to debt collector and they accepted obout 2/3 of the balance to clear it. I have also talked to blair oliver scott and they said to me that they would accept about 2/3 of my balance to clear it.

CLAPTON

Full & Final offers usually happen when

a) You default on your original agreement
b) The default is noted on your credit history.
This will trash your credit rating for 6 years. This usually makes it very difficult for you to borrow any more.
c) You come to a new, affordable repayment agreement.
Payplan, CCCS, the CAB can help you for free with this part of the process, or you can try doing it yourself.
d) You keep asking for interest to be frozen, and eventually it is
d) You stick to the new agreement for at least a year
e) The debt is sold on

At the end of this process the creditor who currently owns your debt is much more likely to accept a full & final payment.

Broken_hearted

I'm having no luck with any of mine at the moment owe £1,050 offering £500, getting told no. Yet they are only getting £36 a year and as they are the smallest creditor on DH DMP they won't be getting a higher payment.

chrisbee_2

how long have you been on a dmp ????

Broken_hearted

A few years

chrisbee_2

well you should be able to negosiate a f&f settlement i was in a dmp for 4 years then sent letters to all my creditors offering them appox 50 % of what i owed them first they refused. I left it about a month and contacted them again offered 60 % and telling them that other creditors had agreed to my offer (which they never really) then they also agreed..

has any of your debt gone to dca?

maddysaver

chrisbee wrote: »

well you should be able to negosiate a f&f settlement i was in a dmp for 4 years then sent letters to all my creditors offering them appox 50 % of what i owed them first they refused. I left it about a month and contacted them again offered 60 % and telling them that other creditors had agreed to my offer (which they never really) then they also agreed..

That's actually really helpful to me. We've got a lump sum and could stretch to 60% of the totals we owe (have been on a DMP for 3 years). We've offered 30% to begin with but got not only a big fat no from 2 out of 5 so far, but both are implying they won't accept less than 95% :eek:. I know they're not obliged but it seems silly. At the rate we're paying them it will take 11 years for them to get it all back. I'm going to try the softly softly catchee monkey approach then and keep trying with them. Out of interest, did you phone or write to them in the first instance?

chrisbee_2

i wrote to them with the full and final template letter http://www.insolvencyhelpline.co.uk/general_debt_advice/letters_to_creditors.htm
with your next offer i would offer around 45-50% tho ..

if you dont mind me asking who were the creditors who have said no?

maddysaver

chrisbee wrote: »

i wrote to them with the full and final template letter http://www.insolvencyhelpline.co.uk/general_debt_advice/letters_to_creditors.htm
with your next offer i would offer around 45-50% tho ..

if you dont mind me asking who were the creditors who have said no?

Thanks - that's the letter we used.
The ones who have said no are MBNA and Egg. Now frustratingly about 12 months ago Egg wrote and phoned us offering us a deal of 50% to clear the debt (we have 2x CCs and 1 loan with them). They now say there's no way they would have done that and said on the phone they'd be looking at 95% . I think they are in quite a bit of do-do as they've been taken over by American Citibank and all that kerfuffle with stopping people's cards. It's the credit crunch

MBNA - we haven't had a formal response from them, but after writing we phoned them and the woman on the phone said they would be looking at nearer 80-90% but may go for 70% 'if we had a good reason'. But said they would do a credit check and would require all manner of paperwork (bank statements, full details of all commitments/creditors, payslips etc etc) before accepting less than the full amount. Bit depressing really as we were really hoping to get rid of them