Full and final settlement help thread

timbstoke · 2 October 2014 at 12:21PM

I'm currently negotiating with one of my partners creditors who she has an IVA with for £1 a month. I've found that when she talks to them, they constantly try and pressure her to increase her payments. When I speak to them, their attitude changes completely - probably because my stance it "Any F&F would be from my money, but since it's not my debt, I'm not interested in F&F unless you make it worth our while getting this off our records." I've already ended negotiations with them a couple of times because they've offered a token 10% off the debt for F&F - I've told them at that price it's not worth the effort of paying, I'm quite happy for her to keep chipping away at the agreed £1/month.

We're at something of a stalemate right now, but we'll get there. We want it gone before we get married, so I'm capitalising on the current state of "no financial link" and the bargaining power that comes with it.

willowwispy · 21 October 2014 at 5:03PM

I have several debts I've been making reduced payments on. Just had a great result with a subsiduary company of Skipton BS. The debt was £5310.79 & they settled for £531!!! in F&F ...90% off great result. Now I can pay off more than I first hoped :-)

NatalieC87 · 6 November 2014 at 9:29PM

Hello

Any advice on this would be much appreciated.

My work colleague asked me to speak to Moorcroft Debt Recovery on their behalf regarding a Full and Final settlement for a Lloyds debt she has had for 15 years.

Currently she owes £700. I spoke to Moorcroft and spoke to an advisor and I offered them £300 on her behalf as this is all she can afford. The Moorcroft advisor said the most they would offer is a 10% reduction on the debt.

What else can my work colleague do? She wants to pay as little as possible.

Also the Moorcroft guy said that she had to give a finacial assessment to reduce the debt that much. My colleague is very reluctant to go into her specific money circumstances.

happy_bunny_2 · 7 November 2014 at 7:39AM

NatalieC87 wrote: »

Hello

Any advice on this would be much appreciated.

My work colleague asked me to speak to Moorcroft Debt Recovery on their behalf regarding a Full and Final settlement for a Lloyds debt she has had for 15 years.

Currently she owes £700. I spoke to Moorcroft and spoke to an advisor and I offered them £300 on her behalf as this is all she can afford. The Moorcroft advisor said the most they would offer is a 10% reduction on the debt.

What else can my work colleague do? She wants to pay as little as possible.

Also the Moorcroft guy said that she had to give a finacial assessment to reduce the debt that much. My colleague is very reluctant to go into her specific money circumstances.

What's it for?

Unless an overdraft, I would be sending a CCA request on a debt that old.

dizzydannielle · 29 November 2014 at 12:50AM

Hi All,

I am currently in £11,000 debt with littlewoods, k and co, isme and very. I am currently paying a token payment of £1pm to all four catalogue debts.

I am managing my other debt but this particular group got out of hand and unfortunately I was unemployed for a while and couldn't afford the repayments.

I am wondering when to make a full and final settlement?

I have sent letters each month asking them to consider freezing the interest, however they are just adding my £1 token on and still adding lots of interest and charges.

Can anyone give me any advice please?

I am new to the thread.
D x

fatbelly · 29 November 2014 at 9:04AM

dizzydannielle wrote: »

Hi All,

I am currently in £11,000 debt with littlewoods, k and co, isme and very. I am currently paying a token payment of £1pm to all four catalogue debts.

I am managing my other debt but this particular group got out of hand and unfortunately I was unemployed for a while and couldn't afford the repayments.

I am wondering when to make a full and final settlement?

I have sent letters each month asking them to consider freezing the interest, however they are just adding my £1 token on and still adding lots of interest and charges.

Can anyone give me any advice please?

I am new to the thread.
D x

How much do you have available as a lump sum?

dizzydannielle · 2 December 2014 at 2:17PM

Hi Fatbelly, thanks for your reply but at the moment I don't have a particular amount as a relative is going to settle this for me and I have said I would see how much they would accept. Are they likely to accept a full and final at this time? I have missed full payments since August.

Many Thanks, D

fatbelly · 2 December 2014 at 8:07PM

So if you have debts of under 15k, you have no surplus income of your own and no savings from which to make a lump sum, would a debt relief order not be more appropriate?

You would not qualify if you are a homeowner or have a car worth over 1k, but a DRO would minimise the damage to your relative's funds - they could help you with the £90 fee!

To answer your specific question - Are they likely to accept a full and final at this time? The answer is probably not. These are all Shop Direct debts and I don't think they will play ball. Once they have sold the debt on to another company, or are thinking of doing so, there might be a chance.

tlines559 · 4 December 2014 at 1:47PM

Hi, I'm new but been reading on here for a while and this is what I've done:

I have 3 defaulted debts with collection agencies:

Barclays Overdraft - Initially £1700 when it defaulted in Oct 2013- Now £1336.10
HSBC Loan - Initially £824.33 when it defaulted in Sept 2013- Now £609.33
HSBC Credit Card - Initially £1432.08 when it defaulted in May 2014- Now £1217.08

I initially set up a monthly payment scheme with a debt management company who turned out to be robbing b******s and then set up my own agreement with each of the companies. I pay £50/month to Barclays, £45/month each to both of my HSBC debts. I pay on time every month and have done since the agreements were all set up. The HSBC ones were with metropolitan but I recently got letters saying that they are now with HSBC Recoveries. Having rung up and spoken to them, they are exactly the same people in the same building doing the same thing just under a different name. The Barclay's debt is with Barclay's own collection team.

I have been trying to gather together a lump sum to make full and final settlements and have approx £500 coming in from a bonus at work. I have ignored the Barclay's debt for now as they are actually quite nice to me so I don't mind paying the £50/month until I get more of a lump sum saved up.

Today, I have sent a letter to HSBC Recoveries (and kept a copy myself) offering £165 for the account with £609.33 left. I doubt they will accept this offer but it is just a place to start from. I stated in my letter that I wanted my credit record to say satisfied in full and that the account be closed. Also put in the wording about not having them or anyone else chase me for any of the rest of the money. They offered for me to pay £500 as full and final over the phone but said that it would be marked down as partial. I told them I didn't have that much so would offer them in writing what I could scrape together.

I intend on making a deal for this first account and then putting whatever I have left from my bonus into a savings account I can't touch (my mum's) and then paying in the £45/month that I would be paying for the loan debt so that I can get another lump sum together for the credit card account and then save up those payments too for the Barclay's account lump sum. (I hope that makes sense!)

So here are my questions:

Do you think I'm doing the right thing?

Since my accounts have already defaulted and show this on my credit record, will it be 6 years from the date they defaulted that they are removed from my credit record or from when I settle?

Will paying a full and final settlement do any more harm to my already shocking credit score? Or is it worth just plugging away and paying off as much as I can and pay the total?

Will the fact that I pay relatively large amounts in comparison to my debt total go against me in negotiation F&F? (I upped the payments myself from £25/month for HSBC debts so that it would be done faster - this was before I found out about F&F)

Any input or advice is appreciated!

Thanks and sorry it was so long

happy_bunny_2 · 4 December 2014 at 1:51PM

Worth a go, they can only say no.

Accounts fall off 6 years from the default date.

Partially settled won't do much more harm than a settled one, it's still a default.

HB

Full and final settlement help thread

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