Full and final settlement help thread

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  • fullofcold
    fullofcold Posts: 146 Forumite
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    MissDebtFreeWannabe wrote: »
    Hi all,

    My partner has just received a F&F Settlement offer on one of his defaulted debts for 40%, he also received one a few weeks back on another debt, but he was unable to pay it. He is due to receive some monies soon, and I have one question - in around six months, we want to apply for a joint mortgage together (I have a very good credit rating) and he will be debt free by then - in terms of a mortgage application, should we make sure that ALL the debts are paid in full, or if we accept F&F Settlements on some of them (and therefore they are marked as 'partially settled') how much of an impact will this have on our mortgage application? FYI the defaults all occurred end of 2017/ beg 2018 and therefore a long way until the 6 year time limit to coming off the credit report.

    The fact he has defaults is going to be bad enough, but being settled or partially settled - how much of a difference is this?? Any monies we save would be going towards a our deposit!

    Thank you

    Find a good broker and get your partners credit report to them. In my experience John Charcol are pretty good when it comes to this kind of thing (my husband is in an active DMP and they have managed to help us).
    I am a Protection Adviser. You should note that this site doesn't check my status as a Protection Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • fullofcold
    fullofcold Posts: 146 Forumite
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    This is a random question - assuming the property purchase goes through and we have the monies to repay husbands DMP are we able to try for reduced full and final? Only reason I ask is because I'm concerned it'll affect his credit and because his debt defaulted over 6 years ago it has dropped off his credit files.
    I am a Protection Adviser. You should note that this site doesn't check my status as a Protection Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • fatbelly
    fatbelly Posts: 20,483 Forumite
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    fullofcold wrote: »
    This is a random question - assuming the property purchase goes through and we have the monies to repay husbands DMP are we able to try for reduced full and final? Only reason I ask is because I'm concerned it'll affect his credit and because his debt defaulted over 6 years ago it has dropped off his credit files.

    If the entry has dropped off because it's over 6 years since the default, it's not coming back and that is not a factor you need think about.

    Yes, any defaulted debt will potentially be able to be settled at less than 100% - it's just a matter of negotiation.
  • fullofcold
    fullofcold Posts: 146 Forumite
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    fatbelly wrote: »
    If the entry has dropped off because it's over 6 years since the default, it's not coming back and that is not a factor you need think about.

    Yes, any defaulted debt will potentially be able to be settled at less than 100% - it's just a matter of negotiation.

    I have had a lot of advice over the last week on this thread and another. Really do appreciate all the help that we have had. Thank you
    I am a Protection Adviser. You should note that this site doesn't check my status as a Protection Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • flyingv
    flyingv Posts: 89 Forumite
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    Hi everyone, first time posting in this thread but I had to share. I posted 3 f&f letters on Wednesday (Wescot, Robinson Way and Arvato). Wescot outstanding amount was £6,671 and I went in at £3,000. They've just called me to say they will accept £3,300. I've told them I need this in writing before my relative will release the funds, but I can't believe how quickly they responded. I'm not going to bother haggling as £3,500 was my absolute limit. I'm really chuffed :) Hope the others respond as quickly!


    Thanks for all the helpful tips and advice on this thread so far. Love reading others' success stories, hopefully I will be back with good news from the other two DCAs.
  • barbiedoll
    barbiedoll Posts: 5,326 Forumite
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    Hi all. Am back again for some advice, after many years on our debt-free journey, we can finally see some light at the end of the tunnel.

    Our last debt is an old NR loan. Outstanding balance is around £7.5k, we’re currently paying around £200/month via Stepchange.

    The debt is in my husband’s name, but I recently had an inheritance come through and we’d like to get rid of this as cheaply as possible. The debt is over 6 years old and is now with Cabot. How should we go about offering a F&F, and what sort of amount should we be offering? We can give them up to £2000, do you think we have any chance of getting away with this sum?

    Just to add, my husband’s credit file is trashed (thanks to Marbles/Robinson Way defaulting him on a very old debt that wasn’t defaulted 9 years ago :mad::mad:. ) It’s not an issue, my credit rating is ok, and we don’t anticipate having to use credit again in the foreseeable future, but I am able to get phone contracts etc, so we don’t think it’s a problem at the moment at least.

    Any suggestions would be very welcome!
    "I may be many things but not being indiscreet isn't one of them"
  • fatbelly
    fatbelly Posts: 20,483 Forumite
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    Offer them 25%
  • lady123_2
    lady123_2 Posts: 141 Forumite
    barbiedoll wrote: »
    Hi all. Am back again for some advice, after many years on our debt-free journey, we can finally see some light at the end of the tunnel.

    Our last debt is an old NR loan. Outstanding balance is around £7.5k, we’re currently paying around £200/month via Stepchange.

    The debt is in my husband’s name, but I recently had an inheritance come through and we’d like to get rid of this as cheaply as possible. The debt is over 6 years old and is now with Cabot. How should we go about offering a F&F, and what sort of amount should we be offering? We can give them up to £2000, do you think we have any chance of getting away with this sum?

    Just to add, my husband’s credit file is trashed (thanks to Marbles/Robinson Way defaulting him on a very old debt that wasn’t defaulted 9 years ago :mad::mad:. ) It’s not an issue, my credit rating is ok, and we don’t anticipate having to use credit again in the foreseeable future, but I am able to get phone contracts etc, so we don’t think it’s a problem at the moment at least.

    Any suggestions would be very welcome!

    I would challenge the original creditor. they should have defaulted you 6 months after you he stopped making payments i think, someone with a better knowledge may offer some advice regarding defaults, that way Robways default would be removed.
    i complained to BC as they waited 4 years to default me, after my complaint they agreed to default 4 months after my last payment which wiped the default from my Credit report. worth a try.
  • fullofcold
    fullofcold Posts: 146 Forumite
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    I'm a bit confused - I realise my husband has to request a CCA for his debts before we start the f&f stage. Do we request this from the original lender, or from the company the debt has been sold to?
    I am a Protection Adviser. You should note that this site doesn't check my status as a Protection Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    fullofcold wrote: »
    I'm a bit confused - I realise my husband has to request a CCA for his debts before we start the f&f stage. Do we request this from the original lender, or from the company the debt has been sold to?
    You send it to whichever DCA currently owns the account. Don't forget to include your £1 cheque or postal order. :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

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