Full and Final Settlement letter help

mrsspendalot

I have a debt with Wescott which is 6 years old this month. I have been paying it every month since it was passed to them at £22.57 which is what the pro rata payment at the time was. A couple of years ago they offered me a full and final settlement of 75% the outstanding debt, but I didn't have the money. I now want to try and get them to settle for 50% (wishful thinking but you never know) of the remaining debt, which would be around £800. Does anyone have a suitable letter template to write and ask them if they will settle for a lump sum payment now? Thanks.

fermi

There is one at the end of this factsheet:

Link: Factsheet | Full & Final Settlement offers

You can probably adapt that to suit.

mrsspendalot

Thanks Fermi

mrsspendalot

Where it says:

We also request that, if accepted, you will make an entry on a credit reference agency file relating to the above account as "satisfied" in full.

Should I include this bit as the debt should fall off my credit file anyway with it being 6 years up, if they mark it as satisfied does that mean it will remain for another 6 years on my file?

fermi

mrsspendalot wrote: »

Should I include this bit as the debt should fall off my credit file anyway with it being 6 years up, if they mark it as satisfied does that mean it will remain for another 6 years on my file?

No. It will still be removed six years after the default.

From Link: Experian Sample Report 2008

A defaulted account is removed from your report after six years whether or not you have paid the debt in full. If you have paid some of the debt off, the balance should show how much you still owe.

And Equifax: How long will information stay on my Credit File?

Credit Agreements: 6 years from the date the account was settled, written off or defaulted, whichever occurred first

mrsspendalot

Great stuff! Thanks! Just couldn't bear another 6 years with that showing up!

mrsspendalot

I've had a reply from Wescot today about my offer of full and final settlement. They have (unsuprisingly) rejected my low offer of £600 but said that they are authorised to settle for £807.45 which is 50% of what I owe, which was what I was hoping to get them to settle for. So yay for success. However, the form they have sent has a box ticked saying they do not accept my offer of full and final settlement for the £600, so technically I have nothing in writing to confirm a settlement of £807.45 in full and final settlement. It does say they will accept it as settlement on return of their letter however. Should I write back to them with the template letter offering them £807.45 and wait for them to reply with the box ticked for accepting that figure? Or is there another template letter for these circumstances? Or does returning the letter with payment seem correct? Thanks.

mrsspendalot

bump bump bump!

averageguy11

Its a matter of opinion I would have thought...maybe write back noting that they dont accept your offer but thanking them for there offer and asking them to confirm the f/f settlemt bit...it might just give you the confidence to settle.....50% off seems lovely!

mrsspendalot

Yes I'm really pleased to get a 50% settlement, it puts an end to 6 years of default misery It also means I will be personally debt free as the last debt is actually my husbands

Any more suggestions or does averageguys's suggestion sound like the way to go?