Full and final settlement help thread

bumfluff73 · 14 June 2018 at 1:48PM

Hello! Just a couple of questions...

I'm currently on a DMP with Stepchange, which covers five accounts, all of which are obviously in default. I checked my credit file on Noddle yesterday, and it seems that each account is marked with a red D for default for each of the past two years (when I started the DMP). I was under the impression that a default notice was a one-time event on your credit file - will the default come off my credit file in four years' time, or will it remain until all debt is paid? Basically, if I still have debt owed in six years, will it show as a default? Just wondering as I want to get my file in order as soon as I can. I rent privately which is why I'm concerned about credit checks.

Secondly, some of my debts were sold on last year - I think. The agencies my debts are with are Link Financial Outsourcing (Barclaycard), Westcot Credit Services (Lloyds, Halifax x 2, BoS) and PRA Group (MBNA)- all of which I believe are 'debt collection agencies' run by the same banks. Does this mean they may be more likely to accept F+F when I'm ready to make an offer? Or should I keep building my funds and wait to see if it is sold on once again? The amount they are all getting each month is well below the normal minimum payment - probably the absolute lowest I can pay given my income/outgoings - but they are being maintained.

Thanks in advance!

onedaysomeday · 14 June 2018 at 2:08PM

bumfluff73 wrote: »

Hello! Just a couple of questions...

I'm currently on a DMP with Stepchange, which covers five accounts, all of which are obviously in default. I checked my credit file on Noddle yesterday, and it seems that each account is marked with a red D for default for each of the past two years (when I started the DMP). I was under the impression that a default notice was a one-time event on your credit file - will the default come off my credit file in four years' time, or will it remain until all debt is paid? Basically, if I still have debt owed in six years, will it show as a default? Just wondering as I want to get my file in order as soon as I can. I rent privately which is why I'm concerned about credit checks.

It will come off in four years time, 6 years after the default date of the account (which should be the first red D )

NeverendingDMP · 15 June 2018 at 9:38AM

It's official. First debt cleared via full and final. Had my letter to say balance clear won't be chased etc. Settled at slightly under 60% of amount owed with moorcroft/arrow global. Yay.
Three of my six remaining are currently unenforceable so I've opened a help to save account. Money I would pay on unenforceable debts is going in there. I will get a bonus on any savings in two years. Im hoping I can
Continue this and my bonus will go towards next full and final offer in a couple of years. If anyone on tax credits is reading this and thinking how will I ever save for a full and final you might be eligible to open a help to save as well.

ella2ethan1 · 4 July 2018 at 9:41AM

Hiya,

Is it best to ask for the F&F in writing then? I’ve probably done everything backwards !!!128584; I’ve phoned up one creditor and paid 50% it was my smallest one though and cancelled my payment with stepchange as I’m now in a position to settle all my debts depending on the figures I get.

Wescott are handelling my banks/loan/overdraft I’m not sure about barclaycard, next and very though I might just wait for letters to come in for none payment.

Can I do wescott together or do I have to have 3 settlements?

Thanks Sarah

sourcrates · 4 July 2018 at 9:54AM

ella2ethan1 wrote: »

Hiya,

Is it best to ask for the F&F in writing then? I’ve probably done everything backwards !!!128584; I’ve phoned up one creditor and paid 50% it was my smallest one though and cancelled my payment with stepchange as I’m now in a position to settle all my debts depending on the figures I get.

Wescott are handelling my banks/loan/overdraft I’m not sure about barclaycard, next and very though I might just wait for letters to come in for none payment.

Can I do wescott together or do I have to have 3 settlements?

Thanks Sarah

You must obtain settlements in writing before parting with any money.

The letter must be specifically worded so you are not liable for the remaining balance been chased in the future.

If you do not obtain this in writing, you leave yourself wide open to future problems.

Littlebigmoose · 7 July 2018 at 5:19PM

Hello does anyone have any experience with dealing with secure recoveries ltd? They collect for payday loan lender my jar (previously txt loan). They have marked my file with AP markers since 2014. I now owe just under £500 which I can clear by December. I have CCA!!!8217;d & received all paperwork. Currently paying tokens. Is it worth asking for a f&f settlement or requesting them to default me back to 2014? Can you even ask for this? I want to get a mortgage in the future and just want them off my file.

fatbelly · 7 July 2018 at 6:44PM

Littlebigmoose wrote: »

Hello does anyone have any experience with dealing with secure recoveries ltd? They collect for payday loan lender my jar (previously txt loan). They have marked my file with AP markers since 2014. I now owe just under £500 which I can clear by December. I have CCA!!!8217;d & received all paperwork. Currently paying tokens. Is it worth asking for a f&f settlement or requesting them to default me back to 2014? Can you even ask for this? I want to get a mortgage in the future and just want them off my file.

Yes, you can do both and you can do them together. Make sure you have the deal in writing before parting with cash

Keep us updated!

Littlebigmoose · 8 July 2018 at 1:25PM

fatbelly wrote: »

Yes, you can do both and you can do them together. Make sure you have the deal in writing before parting with cash

Thank you. Will be writing them a letter with an offer of 30% to start with. Hopefully they accept

mica2 · 19 July 2018 at 1:54PM

Hello, newbie to this thread.
I've got a DMP with Step Change which I've been on for just over a year for debts amounting to approx £19K.
I confessed to my mum the other day and burst into tears because I was so ashamed telling her. But it was a big weight off. She wants to help clear my debts and said she would give me £20K but I don't want her to use all her money to save me when I got myself into this mess as I know some people manage to pay a lot less than what they owe. I was wondering if I can ask my creditors for a final settlement offer but what percentage is the norm to try first? Also, should I ask Step Change before I approach them, will they offer helpful advice?
Also, don't know if it will make a difference but I have told them I am currently in a difficult situation as my partner has lost his job so have had payments deferred for 2 months while we sort out a plan.

StokieBecks · 19 July 2018 at 2:34PM

mica2 wrote: »

Hello, newbie to this thread.
I've got a DMP with Step Change which I've been on for just over a year for debts amounting to approx £19K.
I confessed to my mum the other day and burst into tears because I was so ashamed telling her. But it was a big weight off. She wants to help clear my debts and said she would give me £20K but I don't want her to use all her money to save me when I got myself into this mess as I know some people manage to pay a lot less than what they owe. I was wondering if I can ask my creditors for a final settlement offer but what percentage is the norm to try first? Also, should I ask Step Change before I approach them, will they offer helpful advice?
Also, don't know if it will make a difference but I have told them I am currently in a difficult situation as my partner has lost his job so have had payments deferred for 2 months while we sort out a plan.

Hi Mica

Firstly are your debts still with the original lender ? Settlement offers are usually more accepted once a debt has been sold on. Secondly how long would it take to have paid your debs off fully on the DMP (before having to take this enforced break) - a settlement offer is more likely if this would have taken the collector a long time to collect everything outstanding.

You should speak to step change they may be able to help you negotiate (they will insist though that you treat creditors fairly) - start off low, it is unlikely they will accep straight away but starting low gives some room for movement.

Get everything in writing - do not accept any offer over the phone without written back up, do not pay any money unti you have it confirmed in writing that the settlement leaves the balance as zero and they wont chase or sell on the remainder.

Full and final settlement help thread

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