Full and final settlement help thread

sourcrates · 23 August 2018 at 11:30AM

RW01 wrote: »

Hi Link are the only debt I have which is currently still showing on my credit file (and impacting negatively quite significantly). If I agree a f&f settlement they’ve said they’ll mark my file as partially settled. Does anyone know how this then impacts my credit score, do I really need it to be fully settled to improve my credit score?Thanks

Credit scores are a marketing tool used by credit reference agencies to sell you credit improvement products.

Ignore the score, its good history that counts.

Just get the best deal you can.

mica2 · 24 August 2018 at 11:03AM

I've only been with Step Change for 18 months, the debt was for Barclaycard which I've had for years. My situation is a bit different to most which I explained to them. my partner lost his job and I only work part time in London. So we've had to move to my parents in Norfolk and I'm spending a fortune commuting and staying in air bnb's in London. I told them a month ago about this and asked to have 2 months holiday from my step change payments until we figure out our next steps. My mum has offered to clear my debts but I don't want her to use up all her saving for me and really want to get as much of it reduced as possible. Do you think I should counter their offer with say £500?

Can someone advise me about my post above? They are asking to repay in 3 monthly installments and to pay off in total £1330 but the total is £1478 and if I only pay the reduced amount they'll put partially settled? Seems hardly worth it and I should just clear the full amount. I don't know what to do.

Willing2Learn · 24 August 2018 at 11:14AM

mica2 wrote: »

Can someone advise me about my post above? They are asking to repay in 3 monthly installments and to pay off in total £1330 but the total is £1478 and if I only pay the reduced amount they'll put partially settled? Seems hardly worth it and I should just clear the full amount. I don't know what to do.

Going on the above and your previous posts it appears the DCA (Westcott) don't own the account themselves, but are managing it on behalf of the creditor (Barclaycard). Therefore, in my experience, it is unlikely you will get a much better discount. Since their offer was for 90% of the total due, then why don't you offer 75% and see whether they can accept?

Hope this helps

mica2 · 25 August 2018 at 9:27AM

Willing2Learn wrote: »

Going on the above and your previous posts it appears the DCA (Westcott) don't own the account themselves, but are managing it on behalf of the creditor (Barclaycard). Therefore, in my experience, it is unlikely you will get a much better discount. Since their offer was for 90% of the total due, then why don't you offer 75% and see whether they can accept?

Hope this helps

Thanks so much. i'll give it a shot

fatbelly · 25 August 2018 at 10:08AM

mica2 wrote: »

Hiya, had a reply from Wescot of my offer of 25% @ £370 but they've come back with this: "We have noted your comments and we can confirm that our client can accept a partial settlement of £1,330.26. This can be paid over three consecutive monthly instalments or as a one off lump sum payment."
I'm not sure if it's a typo but it's way off my offer? The total balance I owe is £1,478.07 so it's not even much of a reduction.

I think 75% is too generous as a response to this.

You settled another debt at 50%. I'd use that as a benchmark.

Something along the lines of:

'Thank you for your agreement to settle this account at a discount. I do not require an arrangement to settle in three instalments because a small lump sum is available from a third party, as I have previously informed you.

I have reviewed my original offer and can increase it to 50% as a final offer to settle. Please note that other creditors have already settled at this figure (evidence enclosed)'

Obviously use your own words and feel free to remind them of your situation and how long it will take to repay by instalments if that's appropriate.

System · 5 September 2018 at 1:17PM

Just posted this on the DMP thread but thought I would put it here as well as might get different viewers. Although looking at above posts, looks like they are not the best DCA to deal with for F&F

Well....just went to pick up the post and we have 2 letters from W**cot, who are handling one of our L**ds and H**fax debts. Total for the 2 of them is just over £12000

They are asking for us to send an I&E as we have now been paying token payments for 6 months since going Self managed. They also say in the letters that they are in a position to offer us a discount, that can be paid by instalments if needed and if we do this account will be marked partially settled and we will not have to pay the rest...etc etc.

They are asking us to phone and discuss this with them. Now we originally stated in our letters to them that we would not enter into phone conversations with them and all contact must be in writing etc etc. What would you do? Shall I ring them and see what they want to offer or just send the I&E and make them a small offer of F&F and see what they come back with? I have read that they are not the best DCA's at giving good discounts and obviously if they only offer something silly like 10% off then we can't afford to settle that sort of amount quickly. Although we are building a nest egg for F&F, it isn't that big yet.

Willing2Learn · 5 September 2018 at 1:47PM

If it was me, I would only communicate in writing. The letter would reiterate that all communication must only be in writing, as you don't consent to any other form of communication. I would include in the letter a small F&F figure (say 10%). See how they respond to that!

fatbelly · 5 September 2018 at 9:13PM

W2L is right in that it is best to start and finish the process in writing. though it can be time-saving to conduct the mid-process negotiations by phone.

In this instance I would say it's ok to send an I/E as long as:

it doesn't show much of a surplus
it doesn't show mortgage costs (use 'housing costs' if that's the case)
expenditure is reasonable
preferably your income is benefits

They are not likely to accept 10% but you've got to start somewhere and you can always go up!

mica2 · 11 September 2018 at 1:28PM

fatbelly wrote: »

I think 75% is too generous as a response to this.

You settled another debt at 50%. I'd use that as a benchmark.

Something along the lines of:

'Thank you for your agreement to settle this account at a discount. I do not require an arrangement to settle in three instalments because a small lump sum is available from a third party, as I have previously informed you.

I have reviewed my original offer and can increase it to 50% as a final offer to settle. Please note that other creditors have already settled at this figure (evidence enclosed)'

Obviously use your own words and feel free to remind them of your situation and how long it will take to repay by instalments if that's appropriate.

So Wescot have sent me an email to my offer saying they no longer administer my account and to contact Lloyds who it was originally with? I'm so confused. Does this mean I should try to go in again with my original offer of 50% and start negotiations from scratch?

[Deleted User] · 11 September 2018 at 1:39PM

mica2 wrote: »

So Wescot have sent me an email to my offer saying they no longer administer my account and to contact Lloyds who it was originally with? I'm so confused. Does this mean I should try to go in again with my original offer of 50% and start negotiations from scratch?

That's odd!

I had an letter from Wescot earlier this year telling me that Lloyds might be amenable to a settlement offer but they (Wescot) were not in a position to make a decision on it. they told me to send the offer details to them (Wescot) and they would then put it to Lloyds for a decision. All seems a bit long-winded really, it would be simpler and probably quicker to go via Lloyds directly but Wescot said that's not the way to do it.

I'm wondering now whether Wescot have had a change of policy since they last wrote to me and are no longer administering Lloyds debts. They've been managing mine since about 2014.

Please keep us posted how you get on:T

Full and final settlement help thread

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