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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 111
    • NeverendingDMP
    • By NeverendingDMP 7th Apr 18, 3:18 PM
    • 76 Posts
    • 414 Thanks
    NeverendingDMP
    Same. My biggest debt has been sold then I got a letter from intrum. Pay 4563 in April which is 40% then increases each month etc or can carry on with payment as usual. Aaaaaaaargh. This is my biggest debt but I do not have 4500 and if I did three weeks is not enough to sort ,,, more arrrrgh

    Dug in deep debt. I feel your pain x
    35,213 Jan 2018, 32195 remaining.
    Mortgage 77230 Jan 2018
    76101 remaining.
    • Dugdeepindebt
    • By Dugdeepindebt 7th Apr 18, 7:26 PM
    • 2 Posts
    • 1 Thanks
    Dugdeepindebt
    I have sent them a counter offer but i highly doubt they will accept it
    Fingers crossed that some point in the future they offer us the same discount. For now I've decided to request cca and see what they come back with.
    • NeverendingDMP
    • By NeverendingDMP 7th Apr 18, 9:08 PM
    • 76 Posts
    • 414 Thanks
    NeverendingDMP
    On the plus side it must mean they paid a low price. I can't afford more than 10% if my total. After calming myself down from a missed opportunity I decided to think positive as if I win the lottery at any point my 40% offer now means that at some point when I'm rich and famous I may only have to pay 65 or 70. The likelihood is that I will do the right thing and pay off every penny though
    35,213 Jan 2018, 32195 remaining.
    Mortgage 77230 Jan 2018
    76101 remaining.
    • Lovetobedebtfree
    • By Lovetobedebtfree 9th Apr 18, 11:13 AM
    • 5 Posts
    • 1 Thanks
    Lovetobedebtfree
    Thank you so much, very handy to know, I am hoping to be able to get a mortgage on my HA flat when it is allowed/released by the government so I know I need to save for a deposit which will take time but I also was advised to settle by a Mortgage advisor and then have no unsecured debt for 2 years to help my Mortgage application. So I was thinking of settling my debts as soon as possible to begin the process but maybe I don't need to stress too much if the defaults will show for another 5 years anyway.
    • January2015
    • By January2015 29th Apr 18, 11:43 AM
    • 2,138 Posts
    • 5,242 Thanks
    January2015
    Not my debt, but a friend has just had an out of the blue offer to settle from Robinson Way which I thought might be of interest to others (originally a BC debt).

    Token payments for about 18 months has led to an offer to settle for approx 22% of the balance. Debt was just over 12k with a settlement offer of 2,540. Rob Way have agreed the reduced settlement offer can be paid over six months and account will be marked as satisfied.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • carbootcrazy
    • By carbootcrazy 29th Apr 18, 12:24 PM
    • 4,824 Posts
    • 27,437 Thanks
    carbootcrazy
    Not my debt, but a friend has just had an out of the blue offer to settle from Robinson Way which I thought might be of interest to others (originally a BC debt).

    Token payments for about 18 months has led to an offer to settle for approx 22% of the balance. Debt was just over 12k with a settlement offer of 2,540. Rob Way have agreed the reduced settlement offer can be paid over six months and account will be marked as satisfied.
    Originally posted by January2015
    Thanks for the info, January


    It's certainly very useful to me as one of my debts is with them, an old Tesco CC debt with a current balance of under 3000. Payment has been on hold for about 9 months because they couldn't obtain the CCA paperwork from Tesco. They finally sent me something a few weeks ago but it looks very sketchy to me and I suspect it isn't compliant. I've recommenced payments but of only 1 a month as that's what I'm paying other creditors for as long as I can. RW were very nice on the phone, very understanding and helpful about the token payment. I still have to check if this debt really is enforceable or not (via the AAD forums) but what with the death of my brother and the aftermath I lost the plot for a while. Feeling ready to give it some welly again now though so will follow this up asap. With a bit of luck I won't have to pay even 22%


    I hope everything is well with you and that your debt clearance is all going to plan
    Make 10 A Day Challenge 2018: Jan-June: 2333.00+.


    Original Debt: 56804 (@02/13). Now: 9141
    . Under 10K at long last.
    • January2015
    • By January2015 29th Apr 18, 12:49 PM
    • 2,138 Posts
    • 5,242 Thanks
    January2015
    Thanks for the info, January


    It's certainly very useful to me as one of my debts is with them, an old Tesco CC debt with a current balance of under 3000. Payment has been on hold for about 9 months because they couldn't obtain the CCA paperwork from Tesco. They finally sent me something a few weeks ago but it looks very sketchy to me and I suspect it isn't compliant. I've recommenced payments but of only 1 a month as that's what I'm paying other creditors for as long as I can. RW were very nice on the phone, very understanding and helpful about the token payment. I still have to check if this debt really is enforceable or not (via the AAD forums) but what with the death of my brother and the aftermath I lost the plot for a while. Feeling ready to give it some welly again now though so will follow this up asap. With a bit of luck I won't have to pay even 22%


    I hope everything is well with you and that your debt clearance is all going to plan
    Originally posted by carbootcrazy
    Thanks CBC - I won't hijack this thread with my own stuff... suffice to say that one month post redundancy it's starting to feel less like a holiday and more like unemployment
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • Hammath
    • By Hammath 8th May 18, 9:22 AM
    • 14 Posts
    • 4 Thanks
    Hammath
    Quick question.

    Is it ever possible to clear a default with a reduced payment but have your credit report updated to say settled rather than partially?

    Brief outline I have 4 accounts with Cabot and have made no payment to them. I am in the position to get a mortgage and my broker has advised I just need to have these accounts settled. He specifically said not to get them partially settled and even confirmed with the mortgage provider that when settled they would be happy to process the mortgage.

    Am I just going to have to suck it up and pay them in full?

    Thanks
    • carbootcrazy
    • By carbootcrazy 8th May 18, 9:45 AM
    • 4,824 Posts
    • 27,437 Thanks
    carbootcrazy
    Quick question.

    Is it ever possible to clear a default with a reduced payment but have your credit report updated to say settled rather than partially?

    Brief outline I have 4 accounts with Cabot and have made no payment to them. I am in the position to get a mortgage and my broker has advised I just need to have these accounts settled. He specifically said not to get them partially settled and even confirmed with the mortgage provider that when settled they would be happy to process the mortgage.

    Am I just going to have to suck it up and pay them in full?

    Thanks
    Originally posted by Hammath
    I'm sorry I can't answer your questions as I have had no experience of mortgages since ours was paid off many moons ago.


    What I do know is that, in every case I've heard of, a creditor marks a Full & Final settlement (a misnomer if ever there was one) as Partially Settled. I don't think there's any way to get round that. I hope Fatbelly, sourcrates, January or someone else with the exact information will be along to help you.

    There are 2 points in your post though that struck me. You said you have not made any payment to Cabot. I don't understand what you mean by that, sorry. Your accounts are in arrears and defaulted so your credit file will show this. anyway. I'm surprised your Mortgage company will accept that situation and not Partially Settled status instead.

    Also, you mention offers. Have Cabot contacted you to say they will accept a settlement offer yet? It's isn't a given that creditors will accept them and often depends how far down the line you are with the debts. It may be that Cabot will accept just a minimal deduction from the balance in order to settle so, in that case, it would be worth paying in full if you are in a position to do so and avoid the Partially Settled status on your file.


    Finally, have these debts have been ongoing for a while? Defaults drop off your credit file after 6 years anyway and although the balance is still outstanding no-one can see evidence that it even exists by looking at your file. At least, that's what I understand so I hope someone more knowledgeable will come along and provide the exact information.

    Good Luck
    Last edited by carbootcrazy; 08-05-2018 at 9:57 AM.
    Make 10 A Day Challenge 2018: Jan-June: 2333.00+.


    Original Debt: 56804 (@02/13). Now: 9141
    . Under 10K at long last.
    • Hammath
    • By Hammath 8th May 18, 10:01 AM
    • 14 Posts
    • 4 Thanks
    Hammath
    Since my accounts were passed to Cabot financial I haven't made a payment towards them or contacted them . It's been about 5 years. They have sent me a letter saying they will accept 50% of the balance in settlement.

    In order to proceed with the mortgage application I need the accounts to show as settled rather than partially. This was a very specific request. Because my last 4/5 years credit file is good , once these old defaults are showing as settled rather than defaults with outstanding balances, the mortgage company are happy to proceed.

    I know I have the option to wait about 12 months and not have to pay anything towards them at all but I'm in the position to use some of my house deposit to clear the balances and proceed with the mortgage now rather than wait and continue to waste money renting.
    • carbootcrazy
    • By carbootcrazy 8th May 18, 10:28 AM
    • 4,824 Posts
    • 27,437 Thanks
    carbootcrazy
    Since my accounts were passed to Cabot financial I haven't made a payment towards them or contacted them . It's been about 5 years. They have sent me a letter saying they will accept 50% of the balance in settlement.

    In order to proceed with the mortgage application I need the accounts to show as settled rather than partially. This was a very specific request. Because my last 4/5 years credit file is good , once these old defaults are showing as settled rather than defaults with outstanding balances, the mortgage company are happy to proceed.

    I know I have the option to wait about 12 months and not have to pay anything towards them at all but I'm in the position to use some of my house deposit to clear the balances and proceed with the mortgage now rather than wait and continue to waste money renting.
    Originally posted by Hammath
    Thank you. Sorry, though, I still don't fully understand.


    If you haven't paid Cabot anything for 5 years I can't see how your last 4/5 years credit file can be good. I'm assuming therefore that these debts were defaulted prior to the 5 years that Cabot have owned them , in which case they should have dropped off your file after 6 years in total and this will be reflected in your file now being good.


    There is a situation where debts become Statute Barred. I do not know the full details of this, sorry, but after 6 years (I think) of no contact or payment between creditor and debtor the debt ceases to be claimable. As you said you had no contact for 5 years and just have another year to go I assume Statute Barring is what you're referring to. You say you don't want to waste another year renting but it might be worth it to have the debts totally written off. I'm not sure how this would appear on your credit file though for mortgage purposes. I hope someone else will be along very soon to explain. It doesn't affect me directly.but I'd really like to know the answers as your question really interested me.


    In any case, I'd advise not doing anything at all yet including responding in any way whatsoever to Cabot's offer letter.. Can you hold off making a decision until someone is able to give you some good, solid advice? Incidentally, a 50% reduction after 5 years of paying nothing doesn't seem a very good settlement deal to me
    Last edited by carbootcrazy; 08-05-2018 at 10:32 AM.
    Make 10 A Day Challenge 2018: Jan-June: 2333.00+.


    Original Debt: 56804 (@02/13). Now: 9141
    . Under 10K at long last.
    • AllTheHelpICanGet
    • By AllTheHelpICanGet 16th May 18, 2:30 PM
    • 31 Posts
    • 4 Thanks
    AllTheHelpICanGet
    Advice please...
    Hi all,

    I don't post very often but am an avid lurker! I went self-managed on my DMP almost a year ago after 8 years with StepChange. I then re-negotiated my payments to a lower rate to enable me to save up some F&F's. At the time I also CCA'd all my debts; some of whom responded and some who didn't. One debt was acknowledged as unenforeable and I've not heard anything since which is good. Others sent paperwork that I have had checked and are unenforeable but I have carried on paying. I am now feeling brave enough to challenge a couple of them on enforceability and see if I can use that to negotiate low F&F's (would rather do that than just stop paying). Questions:

    1. Does it matter that it is almost a year since I sent the CCA request. Can I still tell them that since they did not comply I am stopping payments?
    2. Two debts have been sold on - can i tell the new company that I am stopping payments because the debts are unenforceable based on when I CCA'd the previous owner of the debts?
    3. Is it ok to offer a low F&F in the same correspondance that advises I won't be paying or should I advise that I won't be paying and then offer them a lower F&F in the future? My feeling is to do both at the same time....

    Any advice on the above would be much appreciated. Many thanks!
    • sourcrates
    • By sourcrates 16th May 18, 10:56 PM
    • 14,570 Posts
    • 13,709 Thanks
    sourcrates
    Hi all,

    I don't post very often but am an avid lurker! I went self-managed on my DMP almost a year ago after 8 years with StepChange. I then re-negotiated my payments to a lower rate to enable me to save up some F&F's. At the time I also CCA'd all my debts; some of whom responded and some who didn't. One debt was acknowledged as unenforeable and I've not heard anything since which is good. Others sent paperwork that I have had checked and are unenforeable but I have carried on paying. I am now feeling brave enough to challenge a couple of them on enforceability and see if I can use that to negotiate low F&F's (would rather do that than just stop paying). Questions:

    1. Does it matter that it is almost a year since I sent the CCA request. Can I still tell them that since they did not comply I am stopping payments?
    2. Two debts have been sold on - can i tell the new company that I am stopping payments because the debts are unenforceable based on when I CCA'd the previous owner of the debts?
    3. Is it ok to offer a low F&F in the same correspondance that advises I won't be paying or should I advise that I won't be paying and then offer them a lower F&F in the future? My feeling is to do both at the same time....

    Any advice on the above would be much appreciated. Many thanks!
    Originally posted by AllTheHelpICanGet
    Hi,

    From the moment the creditor received the CCA request, your debt became unenforceable, and will remain that way, until they provide what they are supposed to provide in order to fulfill your request.

    That is your starting point, what you choose to do going forward is up to you.
    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/
    • Skoots1710
    • By Skoots1710 18th May 18, 6:54 PM
    • 12 Posts
    • 3 Thanks
    Skoots1710
    Hi all

    I have been in a DMP since 2014 - Thanks to this thread I have managed to get my 3 Defaults backdated to then with no problem at all, I simply wrote to each creditor and asked. Two of the defaults had just been applied in 2018! They called within 2 days of sending the letters and just agreed. Thanks for all your advice on this

    I now have 10k left of debt over 3 cards - one with the original lender and two with Wescot. I recently wrote and offered them all 30% towards the full balances having been offered a lump sum of 3,500 from my father.

    Wescot wrote back accepting it straight off on both cards they hold for me - no problem - no bartering!
    The card still with the original lender said they would accept 50% not 30% All in all a great result which I am happy with.

    My question is, I'm hoping to get a mortgage next year. My defaults will be 5 years old but obviously still showing on my file and my accounts will show zero balances but 'partially settled' Im not sure how negatively this will impact my chance of getting a mortgage? Or do I wait until I can pay them off in full?

    Also the original debts started in 2002 I believe. I haven't requested CCA's at the moment. Is it worth me doing that now or could it upset the offers I've had?

    I was wondering if the CCA requests come back and the debts are unenforceable, I could potentially be in a stronger position to negotiate lower payments and is it possible to negotiate a 'satisfied' marker on my credit file rather than 'partially settled' if I still offer them the higher amounts! Has this ever been heard of?

    Many thanks
    • January2015
    • By January2015 18th May 18, 7:47 PM
    • 2,138 Posts
    • 5,242 Thanks
    January2015
    Hi all

    I have been in a DMP since 2014 - Thanks to this thread I have managed to get my 3 Defaults backdated to then with no problem at all, I simply wrote to each creditor and asked. Two of the defaults had just been applied in 2018! They called within 2 days of sending the letters and just agreed. Thanks for all your advice on this

    I now have 10k left of debt over 3 cards - one with the original lender and two with Wescot. I recently wrote and offered them all 30% towards the full balances having been offered a lump sum of 3,500 from my father.

    Wescot wrote back accepting it straight off on both cards they hold for me - no problem - no bartering!
    The card still with the original lender said they would accept 50% not 30% All in all a great result which I am happy with.
    Originally posted by Skoots1710
    Can I ask which cards Wescot accepted the offers on? Also which original lender accepted 50% Westcot have a couple of mine and it would be great to know if they will be open to negotiations
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • Skoots1710
    • By Skoots1710 18th May 18, 8:30 PM
    • 12 Posts
    • 3 Thanks
    Skoots1710
    Can I ask which cards Wescot accepted the offers on? Also which original lender accepted 50% Westcot have a couple of mine and it would be great to know if they will be open to negotiations
    Originally posted by January2015
    Halifax and Lloyds with Wescot and Capital One (50%) still in house x
    • carbootcrazy
    • By carbootcrazy 19th May 18, 7:14 AM
    • 4,824 Posts
    • 27,437 Thanks
    carbootcrazy
    Halifax and Lloyds with Wescot and Capital One (50%) still in house x
    Originally posted by Skoots1710
    Congratulations on the offers and on getting your debt paid off to the level it was before that. I'm in a rush and can't respond to your questions so I hope someone else will be along later who can.


    Out of interest, Wescot are managing my Lloyds debt but definitely haven't bought it. This situation has gone on since about 2016. Lloyds also are the only one of my creditors to default late, in 2016 instead of at various stages during 2013 like all the others. Some of the defaults will start dropping off my credit file in less than a year from now. I keep planning to write and ask Lloyds for a backdated default but they are not very amenable to helping whatever I ask them for so I keep putting it off
    Last edited by carbootcrazy; 19-05-2018 at 7:57 AM.
    Make 10 A Day Challenge 2018: Jan-June: 2333.00+.


    Original Debt: 56804 (@02/13). Now: 9141
    . Under 10K at long last.
    • fatbelly
    • By fatbelly 19th May 18, 7:50 AM
    • 12,449 Posts
    • 9,495 Thanks
    fatbelly
    My question is, I'm hoping to get a mortgage next year. My defaults will be 5 years old but obviously still showing on my file and my accounts will show zero balances but 'partially settled' Im not sure how negatively this will impact my chance of getting a mortgage? Or do I wait until I can pay them off in full?

    Also the original debts started in 2002 I believe. I haven't requested CCA's at the moment. Is it worth me doing that now or could it upset the offers I've had?

    I was wondering if the CCA requests come back and the debts are unenforceable, I could potentially be in a stronger position to negotiate lower payments and is it possible to negotiate a 'satisfied' marker on my credit file rather than 'partially settled' if I still offer them the higher amounts! Has this ever been heard of?

    Many thanks
    Originally posted by Skoots1710
    You will find some older posts where people negotiated a satisfied marker while settling at a percentage. You could try offering a slightly higher percentage for this but frankly I think it confuses things and I'm not sure how much damage a partially settled marker does. I suspect not much.

    Defaults do cause problems but if they are older and the debt balances are at zero it may not be too bad.

    You are always entitled to do a cca request on cca debts but I'd say to do this at the start or maybe where negotiations have stalled, and you seem to have got good deals on all your debts now. Well done on the 30%/50% deals. You should just pay them now if you can.
    • Skoots1710
    • By Skoots1710 20th May 18, 8:02 PM
    • 12 Posts
    • 3 Thanks
    Skoots1710
    Out of interest, Wescot are managing my Lloyds debt but definitely haven't bought it. This situation has gone on since about 2016. Lloyds also are the only one of my creditors to default late, in 2016 instead of at various stages during 2013 like all the others.
    Originally posted by carbootcrazy
    That was the same with me. Lloyds only defaulted me in Jan 2018 I wrote to them saying it was unfair as id been paying on time each month etc and someone who hadn't paid them at all would now be in a better situation that I am. They called within 2 days of me sending the letter and agreed to backdate it to 2014

    Also used the standard National debt helping letter for the F&F's to Wescot, They just wrote back accepting my offer.

    Ive actually no idea if Wescot had bought my debt or not.

    Its painless Good luck x
    Last edited by Skoots1710; 20-05-2018 at 8:08 PM.
    • Skoots1710
    • By Skoots1710 20th May 18, 8:04 PM
    • 12 Posts
    • 3 Thanks
    Skoots1710
    You could try offering a slightly higher percentage for this but frankly I think it confuses things and I'm not sure how much damage a partially settled marker does. I suspect not much.
    Originally posted by fatbelly
    Thanks Fatbelly, yes I'm really not sure about this but its the difference of possibly being offered a mortgage next year or being declined cause of the partials. I don't know what to do really.
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