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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 109
    • nextyeartina
    • By nextyeartina 27th Feb 18, 7:25 PM
    • 722 Posts
    • 1,053 Thanks
    nextyeartina
    I've been paying £5 per month for about 5 years now. I understand they don't have to accept a settlement offer. I've been making the offers via email but would get it in writing if they were to make an affordable offer. I haven't done a cca request.


    TIA
    The £1,000 emergency fund challenge #163 - £536.16/£1000
    • stonesy
    • By stonesy 27th Feb 18, 9:02 PM
    • 26 Posts
    • 1 Thanks
    stonesy
    Offered my DCA 100% full and final, on a 4 year old debt. I stipulated I wanted the default marker removing and updated as settled, late markers removed, date of default blanked etc.

    Result!
    • redux
    • By redux 28th Feb 18, 1:54 AM
    • 18,099 Posts
    • 23,875 Thanks
    redux
    They have written to me asked me to confirm my source of funds and would need this need to be paid back?

    The answers are my brother and yes they will need to be paid back and i have agreed to do this monthly. Should I tell RW this or can anyone suggest a better response?
    Originally posted by BalanceBy50
    I have often seen the first question (answer: a third party) but not the second. So not sure where they are going with that. I'd be tempted to say no - it's a gift and, as you know, I have no surplus income.
    Originally posted by fatbelly
    I wonder if it's because they seem to be obliged now to make sure people aren't borrowing more money to finance settlement offers. Firms seem to be rather against accepting payment by another credit card.

    So I would say it's family money being made available to help settle this, and hope to not be directly asked again whether it has to be paid back, but if pushed say the family are helping with part gift part loan but won't be charging any interest.
    • Debt_suvivor
    • By Debt_suvivor 28th Feb 18, 9:45 PM
    • 32 Posts
    • 7 Thanks
    Debt_suvivor
    Itís the attitude of paying off debt with more potential debt - itís not particularly viewed as a fair outcome really.
    • Lovetobedebtfree
    • By Lovetobedebtfree 14th Mar 18, 9:53 AM
    • 5 Posts
    • 1 Thanks
    Lovetobedebtfree
    Making a Settlement offer
    Thank you for the information on this forum, outcomes seem to depend on people's circumstances.

    I have two credit card debts of 10K

    I defaulted 18 months ago and started paying back £5 /month and then bought it up to £25 a month each but then I found out about making a settlement so I have reduced my payments back to £5 and have opened up a savings account to pop any windfall or extra money into to that to be able to offer a settlement lump sum. A mortgage advisor suggested I make an offer and then have no unsecured debt for 2 years after that and then I will be in a stronger position to apply for a mortgage even with a "partially satisfied" mark on my credit record.

    I also signed up to Credit Club (MSE service) and have a pre-paid Mastercard which I pay £5.95 a month (this improves your credit rating) and L&Q my landlord send my rent payments to the credit records. So I have been really good for just over two years at paying everything on time but I guess I am trying to speed up the process of being more eligible to buy a mortgage.

    I am hoping by the end of 2018 I can offer 40% of my debt if my income keeps increasing and some surprise money arrives!

    Is this a good way of doing it? People seem to say they won't accept an offer if you look like you can keep paying a decent amount, luckily before I read this today I did reduce my repayments in January to £5/month to each credit card debt at LINK.

    2 Credit cards is the only debt I have had (apart from a Plan A Student Loan) and finally I came to a halt with trying to pay them back and took advice from Step Change and Debtors Anonymous to default and start again in June 2015 but I believe the defaults starts 6 months after that?

    Both Debts are now with LINK (one was with Moorcroft and has transferred).

    Any advice on the above would be great, is saving for a lump sum of 40% realistic for my circumstances and is there anything else I could do differently to help with my credit score in regards to these debts?
    (I have looked at the 23 things you can do to improve your credit score on MSE and only about 3 apply to me so I am doing them)

    Thank you.
    • fatbelly
    • By fatbelly 14th Mar 18, 7:52 PM
    • 12,238 Posts
    • 9,274 Thanks
    fatbelly
    You don't seem to know when your defaults were registered. You should be able to find this out from your MSE credit club data.

    Link are known for offering settlement figures. Maybe start the ball rolling when you can offer 30%
    • ploppy57
    • By ploppy57 14th Mar 18, 9:01 PM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    You don't seem to know when your defaults were registered. You should be able to find this out from your MSE credit club data.

    Link are known for offering settlement figures. Maybe start the ball rolling when you can offer 30%
    Originally posted by fatbelly
    Ooh interesting that L*nk are good at F&F's...we have 3 with them totaling nearly 15k....was hoping they would be OK. Awaiting CCA's from them at the moment.
    DMP March '15 £57,549. Now £44,430. almost 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... Building up slowly.
    Christmas '18 challenge... £22 /£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • Lovetobedebtfree
    • By Lovetobedebtfree 19th Mar 18, 9:35 AM
    • 5 Posts
    • 1 Thanks
    Lovetobedebtfree
    Thank you
    I have a note of the DEfault dates but not to hand when I was writing this message.

    Good to know I can start the ball rolling, will it be marked on my Credit file/report that I offered a F&F if they don't accept it? Is it possible to negotiate a couple of times without it affecting my Credit file?
    • January2015
    • By January2015 19th Mar 18, 11:38 AM
    • 2,065 Posts
    • 5,145 Thanks
    January2015
    I have a note of the DEfault dates but not to hand when I was writing this message.

    Good to know I can start the ball rolling, will it be marked on my Credit file/report that I offered a F&F if they don't accept it? Is it possible to negotiate a couple of times without it affecting my Credit file?
    Originally posted by Lovetobedebtfree
    F&F offers are not recorded on your credit files. Negotiate as many times as you want/need to.
    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]
    • crashingout
    • By crashingout 20th Mar 18, 3:00 PM
    • 15 Posts
    • 7 Thanks
    crashingout
    I recently negotiated a 70% discount of my link debt, was only paying a pound a month for past three years on DMP but it was relatively easy to do.
    • ploppy57
    • By ploppy57 21st Mar 18, 11:42 AM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    I recently negotiated a 70% discount of my link debt, was only paying a pound a month for past three years on DMP but it was relatively easy to do.
    Originally posted by crashingout
    Ooh...think we will be playing the long game with them then and keep token payments for a good while yet.
    DMP March '15 £57,549. Now £44,430. almost 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... Building up slowly.
    Christmas '18 challenge... £22 /£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • tequilabird
    • By tequilabird 24th Mar 18, 9:34 AM
    • 62 Posts
    • 166 Thanks
    tequilabird
    I have 10 debts in total equalling about 26K now. All bar 3 have been sold on to collectors. I have recently contacted them all with a 25% offer of the final balance. Most have declined and come back with counter offers around the 80% mark. However, I've had success with 2 of them through Nationwide (not sold on), who agreed the 25% offer on both so:

    Nationwide Personal Loan - £635 outstanding, accepted an offer of £158
    Nationwide Credit Card - £3490 outstanding, accepted an offer of £872

    Really pleased with these successes - just need to keep working on the other ones now. However, as posted in a separate thread:

    1.) I'm not really sure what CCA requests are? Should I have done these? Why?
    2.) What's are the benefits/consquences of having a partially settled account over a fully settled account?

    Have a great weekend!
    Lightbulb Moment: 18/01/2015
    Current Debt: 31,869.62
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope!
    • fatbelly
    • By fatbelly 24th Mar 18, 10:20 AM
    • 12,238 Posts
    • 9,274 Thanks
    fatbelly
    Nationwide Personal Loan - £635 outstanding, accepted an offer of £158
    Nationwide Credit Card - £3490 outstanding, accepted an offer of £872
    Originally posted by tequilabird
    Excellent results. well done!

    Yes, do cca requests on the other loans/credit cards.

    Partially settled is the correct mark
    • tequilabird
    • By tequilabird 24th Mar 18, 10:27 AM
    • 62 Posts
    • 166 Thanks
    tequilabird
    What do the CCA requests do though? I'm a bit unsure about what I will achieve.
    Thanks,
    TB
    Lightbulb Moment: 18/01/2015
    Current Debt: 31,869.62
    DMP Start Date: 01/09/2015
    DFD: TBC but sooner rather than later, I hope!
    • sourcrates
    • By sourcrates 24th Mar 18, 11:43 AM
    • 14,006 Posts
    • 13,263 Thanks
    sourcrates
    What do the CCA requests do though? I'm a bit unsure about what I will achieve.
    Thanks,
    TB
    Originally posted by tequilabird
    Answered on your other post.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • StokieBecks
    • By StokieBecks 24th Mar 18, 3:23 PM
    • 4,523 Posts
    • 27,263 Thanks
    StokieBecks
    Just a quick question for the more knowledgeable posters amongst us . Can you make a partial settlement offer on a CCJ?

    I will soon be in a position to wipe my debts clear. Have been paying them all regularly. The CCJ has been paid the amount instructed every month since it was issued. Today I received a letter asking to confirm payments were still ok (which I had wrote to them a month ago to state I would be continuing to pay at the current amount for the next few months until further notice) the letter says if I am in a position to partially settle the creditor may accept a reduction - I though with a CCJ on the account I would have to pay it all off. Does anyone have any experience of offering a partial to settle a CCJ? Am I best just to pay that one in full?
    • ploppy57
    • By ploppy57 24th Mar 18, 4:54 PM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    Made an offer to PR* on our lowest debt as they have deemed it UE. Debt is £291 and we offered £30. They say they can't settle lower than £204!! Shall I try again at about 30% or just wait ....we are currently not making payments on it as they put the account on hold.
    DMP March '15 £57,549. Now £44,430. almost 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... Building up slowly.
    Christmas '18 challenge... £22 /£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • fatbelly
    • By fatbelly 24th Mar 18, 5:11 PM
    • 12,238 Posts
    • 9,274 Thanks
    fatbelly
    Just a quick question for the more knowledgeable posters amongst us . Can you make a partial settlement offer on a CCJ?
    Originally posted by StokieBecks
    Yes you can, but are not likely to get such a good deal. If you have been keeping up with payments, and they are going to clear the debt in a reasonable time, then they may not be prepared to deal at all.

    On the other hand, if they do not think they can enforce the ccj, and you cannot afford reasonable instalments you may be OK. I've just done one of these for 50%

    Made an offer to PR* on our lowest debt as they have deemed it UE. Debt is £291 and we offered £30. They say they can't settle lower than £204!! Shall I try again at about 30% or just wait ....we are currently not making payments on it as they put the account on hold.
    Originally posted by ploppy57
    If it's unenforceable, they are lucky you are offering them anything. You've got other debts that are of a higher priority than this one. I wouldn't waste any time or money on it.
    • ploppy57
    • By ploppy57 24th Mar 18, 5:30 PM
    • 722 Posts
    • 4,650 Thanks
    ploppy57
    Yes you can, but are not likely to get such a good deal. If you have been keeping up with payments, and they are going to clear the debt in a reasonable time, then they may not be prepared to deal at all.

    On the other hand, if they do not think they can enforce the ccj, and you cannot afford reasonable instalments you may be OK. I've just done one of these for 50%



    If it's unenforceable, they are lucky you are offering them anything. You've got other debts that are of a higher priority than this one. I wouldn't waste any time or money on it.
    Originally posted by fatbelly
    They say it is "Currently UE" as they can't locate the documents. So they could find them in the future, but doubtful as we have 2 more with them totalling about £1500 and they can only find some of the paperwork for them and have said they are currently UE as well while they search for rest of them.
    DMP March '15 £57,549. Now £44,430. almost 23% paid. Went SM Feb '18 to get DF sooner.
    Emergency fund #231... Building up slowly.
    Christmas '18 challenge... £22 /£300
    "There's a Great Big Beautiful Tomorrow, Shining at the end of every day"
    • Lovetobedebtfree
    • By Lovetobedebtfree 27th Mar 18, 11:38 AM
    • 5 Posts
    • 1 Thanks
    Lovetobedebtfree
    Update
    I have spoken to LINK & Moorcroft and they don't have set percentages that they accept and don't remove Defaults on your credit file if you negotiate a settlement.

    I am just wondering as my Credit score is saying "very poor" if I should just wait the next 3 years whilst I try and save up for a deposit for the defaults to run their course?

    Does anyone know how long it takes once you do a F&F for your credit score to improve and does it improve dramatically?

    Also my rent is supposed to be recorded but it didn't sure up on Equifax, Credit Club or Noodle.

    Thanks guys.
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