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  • FIRST POST
    • Weggy
    • By Weggy 19th Nov 05, 10:20 AM
    • 463Posts
    • 98Thanks
    Weggy
    Full and final settlement help thread
    • #1
    • 19th Nov 05, 10:20 AM
    Full and final settlement help thread 19th Nov 05 at 10:20 AM
    Hi all

    Am currently trying to negotiate with debt collection agencies, to get them to accept a full and final settlement figure. Does anyone have any tips on persuading them to lower their demands?

    Thanks

    Last edited by MSE Archna; 21-06-2006 at 7:41 AM.
Page 106
    • carbootcrazy
    • By carbootcrazy 12th Jan 18, 8:06 PM
    • 4,814 Posts
    • 27,326 Thanks
    carbootcrazy
    Hi CBC

    I would go in at 30% - 35%. They will most likely refuse and you can bat backwards and forwards until you reach a figure you are happy with - or not, in which case you just keep plodding with the token payments.

    The problem is the debt is still with the original creditor - albeit that it is being managed by a DCA (Wescot). It is so frustrating that creditors seem to prefer to sell to DCAs for peanuts rather than settle directly with customers for similar peanuts
    I understand why they don't want to accept low offers, but if they are going to sell the debt for that anyway then why not make the first offer directly to the creditor and if that is refused only then they should be able to sell to a DCA
    Originally posted by January2015
    Thanks very much for your advice, January. Nice to see you again, by the way

    I totally agree about the original creditors' reluctance to offer good F&Fs to the people who owe them money. Would save a lot of time and hassle for all concerned. I suppose they don't want to come across as a soft touch. They want to squeeze every last penny out of us while they still have the chance
    Make £10 A Day Challenge 2018: Jan-May: £1988.00+. June: £315.12


    Original Debt: £56804 (@02/13). Now: £9618
    . Under £10K at long last.
    • ac2111
    • By ac2111 12th Jan 18, 10:13 PM
    • 7 Posts
    • 6 Thanks
    ac2111
    That's really great...and very interesting as we have just been offered a f&f from Robinson's. Our debt is £2800 & they are saying they will accept £1400. We are still paying through SC so I think we need to go self managed and then drop to minimum payments and see what happens.

    Can I just ask, have they been OK about you paying £1 payments for such a long time?
    Originally posted by ploppy57
    not had any contact from them other than statements of account, i did have to go through income and expenditure but did it on there online chat and all sorted within an hour
    • RW01
    • By RW01 16th Jan 18, 1:27 PM
    • 10 Posts
    • 17 Thanks
    RW01
    Hi, I currently have 2 debts with Cabot (MBNA loan and NatWest credit card). They're unable to provide cca's for either (they are both for c£3700). They've today sent me a letter confirming that they can't get cca for MBNA loan however they expect me to still pay the outstanding balance. I don't really want to stop my current payments and get into the point where they keep chasing me (partner is unaware of debts). I may be able to make a settlement figure for one of the debts at the end of this month, bearing in mind I know we'll both be fully aware of the fact that whilst wthey want me to carry on paying it's not enforceable (been paying c£80pm for years as part of my DMP), would anyone have any experience of a settlement figure they might accept?
    • carbootcrazy
    • By carbootcrazy 16th Jan 18, 2:28 PM
    • 4,814 Posts
    • 27,326 Thanks
    carbootcrazy
    Hi, I currently have 2 debts with Cabot (MBNA loan and NatWest credit card). They're unable to provide cca's for either (they are both for c£3700). They've today sent me a letter confirming that they can't get cca for MBNA loan however they expect me to still pay the outstanding balance. I don't really want to stop my current payments and get into the point where they keep chasing me (partner is unaware of debts). I may be able to make a settlement figure for one of the debts at the end of this month, bearing in mind I know we'll both be fully aware of the fact that whilst wthey want me to carry on paying it's not enforceable (been paying c£80pm for years as part of my DMP), would anyone have any experience of a settlement figure they might accept?
    Originally posted by RW01
    Try 10% for starters. I know there was a poster on here (I think it was January who reported her success) who had a 10% offer accepted on an UE debt as she didn't want to just walk away from it completely. Just make it clear when you contact the holder of the UE one that although it is UE they are most unlikely to win in court even if they were to take it that far to recoup the outstanding debt should you choose not to pay anything at all from now on. There's better ways of putting it but I hope you know what I'm getting at. You should also say that you don't feel easy just walking away from the debt completely and, considering all the things mentioned above, you are prepared to make them a F&F settlement offer of 10%. Also, use example letters found in various places online (I think NEDCAB have one) to make sure that the creditor gives you reassurance (IN WRITING) that they will never in the future chase you for the rest of the debt or pass it on to any other parties to do so. Also, that they will mark your credit file appropriately. That usually means being marked as Partially Settled but that's the best we expect to get. The balance should show as zero.


    Having said all that though there are people on here and elsewhere who would advise paying absolutely nothing further on a UE debt for the simple reason that although the creditor may badger you they don't stand any chance of a succcessful court action against you to recoup the outstanding balance. The creditors who can't produce the CCAs should have put collection of the debt on hold until they do.


    I hope I've not confused you. I hope someone else will be along to maybe add to/contradict what I've advised. The advice I've given is that that has been given to me. I haven't put it into practice yet though as I'm just starting making offers on my bigger debts that are definitely enforceable. I feel happy leaving the UE ones for now. The longer I don't pay anything the lower the settlement figure they may accept eventually

    Good Luck
    Last edited by carbootcrazy; 16-01-2018 at 2:35 PM.
    Make £10 A Day Challenge 2018: Jan-May: £1988.00+. June: £315.12


    Original Debt: £56804 (@02/13). Now: £9618
    . Under £10K at long last.
    • zenshi
    • By zenshi 16th Jan 18, 2:43 PM
    • 997 Posts
    • 1,990 Thanks
    zenshi
    . I feel happy leaving the UE ones for now. The longer I don't pay anything the lower the settlement figure they may accept eventually

    Good Luck
    Originally posted by carbootcrazy
    Have you had any hassle from those youíre not paying at all?
    LBM.....sometime in 2013 £27,056. 10 creditors
    May 18......£17,814.....7 creditors left 34% paid

    £26,200 on interest only part of mortgage (July 16)...will chip away £22,893
    £49,200 repayment mortgage ( July 16) £44,099
    • January2015
    • By January2015 16th Jan 18, 2:59 PM
    • 2,094 Posts
    • 5,184 Thanks
    January2015
    Try 10% for starters. I know there was a poster on here (I think it was January who reported her success)
    Originally posted by carbootcrazy
    Hi CBC

    Yes, it was me who settled a £12k debt for 10%. They did produce a CCA but after taking advice it I was informed it was definitely UE.

    I did choose to settle just to get it sorted. I don't regret that decision, but with hindsight (and in future if I am lucky enough to have any other UE accounts) I wouldn't bother. I would just play the long game. No payments, no contact. Creditor - get stuffed.

    So - although I had 'success', I would advise others to be stronger than I was and not pay anything. The debt is UE. Enough said.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    [COLOR=Blue][SIZE=2]
    • RW01
    • By RW01 16th Jan 18, 3:12 PM
    • 10 Posts
    • 17 Thanks
    RW01
    Hi CBC

    Yes, it was me who settled a £12k debt for 10%. They did produce a CCA but after taking advice it I was informed it was definitely UE.

    I did choose to settle just to get it sorted. I don't regret that decision, but with hindsight (and in future if I am lucky enough to have any other UE accounts) I wouldn't bother. I would just play the long game. No payments, no contact. Creditor - get stuffed.

    So - although I had 'success', I would advise others to be stronger than I was and not pay anything. The debt is UE. Enough said.
    Originally posted by January2015
    Thanks, January2015 I wish I could say I'd leave it but I don't want the stress of letters and it possibly coming back up, I just really want to get it all closed off, if I can get a few 10% settlements acceptedni may be able to be debt free within a year (already knocked 12 months off but having 3 debts written off due to lack of cca). Can I ask if you have a copy of the letter you used that you'd be able to share with me please? Or did you just amend a normal f&f offer letter to say that it's unenforceable so this is my only offer? Thanks
    • January2015
    • By January2015 16th Jan 18, 4:06 PM
    • 2,094 Posts
    • 5,184 Thanks
    January2015
    Thanks, January2015 I wish I could say I'd leave it but I don't want the stress of letters and it possibly coming back up, I just really want to get it all closed off, if I can get a few 10% settlements acceptedni may be able to be debt free within a year (already knocked 12 months off but having 3 debts written off due to lack of cca). Can I ask if you have a copy of the letter you used that you'd be able to share with me please? Or did you just amend a normal f&f offer letter to say that it's unenforceable so this is my only offer? Thanks
    Originally posted by RW01
    I have to be honest, I was the same as you - I didn't want letters or the possibility of the debt returning. Hindsight is a wonderful thing and I wouldn't worry about this now. I do appreciate that this is easier said than done though.

    There is a template on National Debtline

    I just used the template on the link above. They snapped my hand off.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    [COLOR=Blue][SIZE=2]
    • RW01
    • By RW01 16th Jan 18, 4:29 PM
    • 10 Posts
    • 17 Thanks
    RW01
    Hi CBC

    Yes, it was me who settled a £12k debt for 10%. They did produce a CCA but after taking advice it I was informed it was definitely UE.

    I did choose to settle just to get it sorted. I don't regret that decision, but with hindsight (and in future if I am lucky enough to have any other UE accounts) I wouldn't bother. I would just play the long game. No payments, no contact. Creditor - get stuffed.

    So - although I had 'success', I would advise others to be stronger than I was and not pay anything. The debt is UE. Enough said.
    Originally posted by January2015
    I have to be honest, I was the same as you - I didn't want letters or the possibility of the debt returning. Hindsight is a wonderful thing and I wouldn't worry about this now. I do appreciate that this is easier said than done though.


    I just used the template on the link above. They snapped my hand off.
    Originally posted by January2015
    I've got a few that haven't been able to provide cca's so I'm hopeful that if I get a few settled and then can afford to more a more realistic f&f offer on others then I may be debt free this year. I wish I could do what you're suggesting but I just want it all closed off with no danger of coming back to haunt me, if I can settle for 10% then I think it's worth my peace of mind, if it's more than that then I may get tougher and just stop payments! Roll on being debt free, down to less than £30k from about £80k so the end is in sight or so I keep telling myself!!
    • bluemonday3
    • By bluemonday3 16th Jan 18, 5:31 PM
    • 196 Posts
    • 30 Thanks
    bluemonday3
    Hi
    Can I ask how you know if the CCA is unenforceable please as I am currently looking to do F & F's where I can.
    I have sent off for them and one has come back so Cabot are telling me it is enforceable, but to be honest I am naive and wouldn't have a clue so tend to accept what I am being told.
    • January2015
    • By January2015 16th Jan 18, 9:16 PM
    • 2,094 Posts
    • 5,184 Thanks
    January2015
    Hi
    Can I ask how you know if the CCA is unenforceable please as I am currently looking to do F & F's where I can.
    I have sent off for them and one has come back so Cabot are telling me it is enforceable, but to be honest I am naive and wouldn't have a clue so tend to accept what I am being told.
    Originally posted by bluemonday3
    I took advice from another website/forum called all about debt. They got their solicitor to look at my CCA (no charge to me) and advised me it was definitely UE.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    [COLOR=Blue][SIZE=2]
    • bluemonday3
    • By bluemonday3 17th Jan 18, 9:40 AM
    • 196 Posts
    • 30 Thanks
    bluemonday3
    thanks I will check this out.
    • Daisypop
    • By Daisypop 17th Jan 18, 8:52 PM
    • 63 Posts
    • 114 Thanks
    Daisypop
    Failing miserably with my full and final settlements offers. Westcott have come back with a 20% discount I offered 35%. They have also said Cabot who own the debts don!!!8217;t offer to settle the debts in 2/3 instalments which I have asked for however I have seen posts on here where they have agreed it. Could stretch to 50% but that would be it. I!!!8217;ve been hit with a £340 vet bill so feel like reducing my payments now so I can pay that. Is self managed the answer? Reduce payments and build up a bit more in funds? I know I owe the money but would love to settle now I!!!8217;ve paid off a lot over the last 5 years.
    Any advice?
    • carbootcrazy
    • By carbootcrazy 18th Jan 18, 8:20 AM
    • 4,814 Posts
    • 27,326 Thanks
    carbootcrazy
    Failing miserably with my full and final settlements offers. Westcott have come back with a 20% discount I offered 35%. They have also said Cabot who own the debts donít offer to settle the debts in 2/3 instalments which I have asked for however I have seen posts on here where they have agreed it. Could stretch to 50% but that would be it. Iíve been hit with a £340 vet bill so feel like reducing my payments now so I can pay that. Is self managed the answer? Reduce payments and build up a bit more in funds? I know I owe the money but would love to settle now Iíve paid off a lot over the last 5 years.
    Any advice?
    Originally posted by Daisypop
    Sorry to hear you are having no luck with getting your settlement offers accepted

    It can often be because the creditors are happy with the state of current repayments and think they will get their money back eventually. If the debt balance is now relatively small, for instance, and if you are paying it off at a reasonably fast rate. You say you have paid a lot in the past 5 years.


    After 4 and a half years with SC when I paid off over half of my debt I decided to go self-managed last summer mainly to drop to token payments so I could build up a F&F Fighting Fund. I am now in a position to negotiate with about 3 creditors so I'm in a much more confident position than I was this time last year.


    I suspect that creditors will be much more amenable to settlement offers if they are not seeing the debt balance going down by much each month and it looks as if it is going to stretch many years into the future. Self managing has been a major help to people who have taken the plunge and done it. Their posts after the event are much more optimistic. It's quite simple to set up and administer. If I can do it anyone can
    Make £10 A Day Challenge 2018: Jan-May: £1988.00+. June: £315.12


    Original Debt: £56804 (@02/13). Now: £9618
    . Under £10K at long last.
    • Daisypop
    • By Daisypop 18th Jan 18, 6:15 PM
    • 63 Posts
    • 114 Thanks
    Daisypop
    Hi thank you. Did you complete an i and e with your creditors whenYou went self managed and how did you manage to drop your payments? I donít know how I would be able to drop
    The payments as they will see I can afford more unless I add extra on to everything?
    Thanks again
    • carbootcrazy
    • By carbootcrazy 19th Jan 18, 10:48 AM
    • 4,814 Posts
    • 27,326 Thanks
    carbootcrazy
    Hi thank you. Did you complete an i and e with your creditors whenYou went self managed and how did you manage to drop your payments? I donít know how I would be able to drop
    The payments as they will see I can afford more unless I add extra on to everything?
    Thanks again
    Originally posted by Daisypop
    If you look on the NEDCAB website they will guide you through the process of self-managing. Creditors will need an I&E so check on there to see what to do.


    Yes, you must claim for everything and make sure at the end of the day whatever money you have available tallies with the total of what you plan to pay your creditors. I know it's dishonest , I had big problems going down this route myself, but sadly, needs must. If it appears from your I&E that you have lots more money available than you are offering to pay them your creditors will be less than amenable
    Make £10 A Day Challenge 2018: Jan-May: £1988.00+. June: £315.12


    Original Debt: £56804 (@02/13). Now: £9618
    . Under £10K at long last.
    • Daisypop
    • By Daisypop 19th Jan 18, 3:12 PM
    • 63 Posts
    • 114 Thanks
    Daisypop
    Hi thank you for that I think I!!!8217;ll ditch Stepchange and set my own up through NEDCAB.
    Did you get any bother from your creditors following you dropping your payments and how much did you drop? I genuinely have had excessive vet bills to pay and still 340 today so won!!!8217;t be not telling the truth but I want to be able to settle this year if possible.
    Sorry for the questions!
    • carbootcrazy
    • By carbootcrazy 19th Jan 18, 4:37 PM
    • 4,814 Posts
    • 27,326 Thanks
    carbootcrazy
    Hi thank you for that I think I!!!8217;ll ditch Stepchange and set my own up through NEDCAB.
    Did you get any bother from your creditors following you dropping your payments and how much did you drop? I genuinely have had excessive vet bills to pay and still 340 today so won!!!8217;t be not telling the truth but I want to be able to settle this year if possible.
    Sorry for the questions!
    Originally posted by Daisypop
    No problem with asking questions. We have all 'been there' in some way or another and are always happy to share our experiences with others

    When I first started self-managing I paid just slightly less than what I'd been paying with SC. After a couple of months I suddenly had massive outgoings/bills/emergencies etc (some of them perfectly true alas) and it was then that I dropped to token payments after notifying my creditors. They all requested a new I&E to show this but I was happy to comply. They all accepted it without any quibble. Other people will have done things differently so I hope some others reply to you so you have a choice of options.


    The secret is not to ignore your creditors. So long as you communicate (not by phone if it makes you uneasy or anxious)they are usually more than amenable. That's my experience anyway.

    Good Luck
    Make £10 A Day Challenge 2018: Jan-May: £1988.00+. June: £315.12


    Original Debt: £56804 (@02/13). Now: £9618
    . Under £10K at long last.
    • Daisypop
    • By Daisypop 19th Jan 18, 5:23 PM
    • 63 Posts
    • 114 Thanks
    Daisypop
    Thank you so much it does help. Stepchange arenít very flexible so think self managed is the way to go.
    • penewise
    • By penewise 20th Jan 18, 10:40 AM
    • 9 Posts
    • 1 Thanks
    penewise
    I'm a bit of a lurker but love these pages.They have helped me loads and as a result we have over the last four years gone from £63000 to £26000.
    I sent off for CCAs in November on 9 cards and loans. I received the first one back yesterday as unenforceable but they still expect to peruse the debt. It's about £2600. As some of the debts have been sold on or are outsourced I have allowed them extra time but it's now been 56 days and am yet to hear from eight of the debts.
    Prior to this I made offers of 40% but they all came back with counter offers of 85-100%.What should I do now ?Should I contact them again?
    I'm with payplan but they don't seem to want to help with CCAs.
    I need to get there debts cleared this year as my interest only mortgage is up and I can't remortgage until they have gone.
    Last edited by penewise; 20-01-2018 at 11:09 AM.
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