Full and final settlement help thread

sourcrates · 24 January 2016 at 12:24PM

merrydance wrote: »

Hi
We have managed (hopefully it's still going through) to secure an equity release, where it doesn't roll up if you pay the interest every month. We want to pay off our credit cards, we make token payments on one at £30 per month, but Barclays have not defaulted it yet, we have been paying this for 4 months. When and if we get our money, do you think they would take and FandF settlement. We will write to them first to see if they have a copy of the CAA. Any thoughts please.

Hi,

You can certainly pay off your outstanding balance, however, its extremely unlikely that Barclaycard will take less than is currently owed, as technically the relationship between you has not yet broken down sufficiently for them to default you.

So the terms of your agreement have not yet been broken, hence the full balance will remain payable.

You may be able to get a few quid off, but it will be a negligible amount, the big discounts are usually reserved for long defaulted, unpaid accounts, that are currently with debt collection agency's.

merrydance · 24 January 2016 at 12:47PM

Thanks sourcrates, how about if they do not have a credit agreement will that hold any leverage?

sourcrates · 24 January 2016 at 1:36PM

merrydance wrote: »

Thanks sourcrates, how about if they do not have a credit agreement will that hold any leverage?

Well then the ball would be in your court.

You could say "stuff it, I'm not paying",

Or, make a low offer to settle.

But from the creditors point of view, the account would remain liable and outstanding, they just couldn't obtain judgement against you in court.

So you can never predict how a creditor will react, they may remain stubborn, and simply demand full payment or sell on the debt and cut there losses, or they may accept, you simply won't know till you ask.

Barclaycard in particular have a reputation for been particularly awkward in matters such as this.

fatbelly · 24 January 2016 at 1:42PM

pip10 wrote: »

Hi,

Just a couple of questions - I have 5 creditors and hoping to make some full and final offers soon. 4 are credit cards, 1 is for an overdraft that I no longer have (the account is closed). Can I make a full and final settlement offer on this one?

Yes of course you can. The difference is that the usual advice to do a cca request first does not apply with an overdraft

merrydance wrote: »

Hi
We have managed (hopefully it's still going through) to secure an equity release, where it doesn't roll up if you pay the interest every month. We want to pay off our credit cards, we make token payments on one at £30 per month, but Barclays have not defaulted it yet, we have been paying this for 4 months. When and if we get our money, do you think they would take and FandF settlement. We will write to them first to see if they have a copy of the CAA. Any thoughts please.

They should default you between 3 and 6 months after the relationship has broken down so hold fire for now.

I'm not sure if I approve of equity release to do F&F as it's like transferring debt to a more dangerous place. I guess you may think it's OK if you have the right to live there indefinitely and are never going to move, but how many of us can see the future that clearly?

merrydance · 25 January 2016 at 3:18PM

Hi fatbelly

We have looked very deeply into this equity release. If we pay the interest every month it will never be any higher than the original sum we borrowed. Also if we want to sell in the next year - it will be 5 per cent to pay on the original sum, 3 percent after 2 years and goes down to 1 per cent after 5 years. Some equity release schemes charge 20 per cent for early repayment. It was Stepchange that recommended this, although we have gone through a different scheme to the one they suggested. We have a financial advisor and he recommended this one.

heather66 · 26 January 2016 at 4:01PM

Has anyone recently had A F&F accepted by Moorcroft debt collector

thanks

whambam · 27 January 2016 at 1:02PM

Are there some debt collection agencies more favourable than the others? Cabot financial seem to only want 1/3 of your total debt while others its 50-80%.

Wescott seems one to avoid?

fatbelly · 27 January 2016 at 1:48PM

whambam wrote: »

Are there some debt collection agencies more favourable than the others? Cabot financial seem to only want 1/3 of your total debt while others its 50-80%.

Wescott seems one to avoid?

Cabot are debt buyers so in settling for 30% they are making a profit.

Wescot and Moorcroft generally just act as agents for a variety of creditors so will be referring offers back to their 'client' who may well still be the original lender.

Every case is individual - start low and see what you can get.

Delete33 · 27 January 2016 at 2:06PM

What exactly is equity release please ????????????

sourcrates · 27 January 2016 at 2:31PM

Delete33 wrote: »

What exactly is equity release please ????????????

It's where a company loans you a sum of money secured on your house, you can either make no payments, and when you die, the house is sold to repay the loan, plus interest, or you make monthly interest payments, and just repay the capital on death out of your estate.

Generally you have to be over a certain age.

Full and final settlement help thread

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free