Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • 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 121
    • fatbelly
    • By fatbelly 12th Jan 19, 10:25 AM
    • 13,472 Posts
    • 10,530 Thanks
    fatbelly
    I want to thank you in advance for any advice or replies in advance.
    Here is the situation.
    Original debt with Argos for 1600 defaulted 2 years ago approx. Managed by zinc. Zinc wrote to me a few weeks ago offering a one off settlement amout of 800 in order to close the account and it would be marked as partially satisfied offer valid until the 25th. However I received a letter from Argos yesterday saying Moorcroft is now managing the account. I do have the money to settle it with zinc but now unsure as to who to deal with. What should I do?
    Many thanks again in advance.
    Originally posted by myamyamoo
    You're going to have to deal through Moorcroft now.

    You could try offering them a bit less than 50% or just ask for the same deal. Did it say offer open until 25 Jan?
    • myamyamoo
    • By myamyamoo 12th Jan 19, 10:29 AM
    • 50 Posts
    • 64 Thanks
    myamyamoo
    Thank you for your quick reply. Yes zinc did say it was open until the 25th.
    Emergency fund 1000
    1 debt vs 100 part 20: 1000/1000
    DFD May 2032 trying to make it sooner
    • David2Prit
    • By David2Prit 12th Jan 19, 11:30 AM
    • 68 Posts
    • 35 Thanks
    David2Prit
    When speaking with Moorcroft, do not mention that you have the money on hand, but that you were getting it from a third party to help clear this debt, but only at the original amount Zinc offered.

    Start a little lower though
    • terman
    • By terman 12th Jan 19, 4:07 PM
    • 11 Posts
    • 6 Thanks
    terman
    Hi, Mr &Mrs Terman, and welcome to DMP land

    Just my two penn'orth , for what it's worth, to add to the advice given by fatbelly (below).







    1. Accounts don't necessarily get defaulted in a timely manner. They should do but some creditors don't always play ball. One of mine took 2 years, although I subsequently challenged this and got it backdated. 2 others defaulted after 9 months. One never defaulted at all, always marked my file as AP (arrangement to pay) and no amount of arguing persuaded them to default. the AP marker will be on my credit file for 6 years after that debt (my smallest incidentally} was settled in full 2 years ago. The earliest defaulted one should drop off my credit file next month


    2. When I sent off my CCA requests it cost 1 for each one which I sent by Postal Order. I have been reliably informed that it is now a FREE service. I'll try to find some reference to the change and post a link.


    3. Save your F&F fund wherever you like so long as, as fatbelly advised you, it isn't connected to any financial institution where you have debts. Creditors have the Right of Offset' and could(although I don't know of any case where they have) use your savings against the debt owed to them. When I started my DMP, one of the few banks I didn't owe anything to was Nationwide and I opened a Basic Account with them which was the only type of account I could get with such a rubbish credit history. I do all my transactions online and opened a couple of Online Saver accounts with them which make it simplicity itself to sweep money back and forth from one account to another. Make sure when opening accounts for yourself that the financial institution you use isn't connected in any way to your creditors. Lots of banks are part of banking groups and under the same 'umbrella' as several others.


    4. With F&F payments, it would be eye-wateringly expensive for you to use Postal Orders once the 'poundage' is added, that's if the creditor would accept them (which I doubt they would) for what would still be a relatively large amount of money. I have a Basic bank account since opening my DMP and it does not offer a chequebook. When I negotiated my F&Fs recently, for several thousands of pounds in some cases I did the final stage by phone once it was all agreed. I just gave them my debit card number and it was all done and dusted instantly at no extra cost. The confirmation letter of their acceptance of your F&F offer should detail the different ways they will accept payment from you, I assume you are paying your monthly DMP payments by Standing Order from your Bank Account (most DMPers advise NOT to set up DDs for this) so the creditor will already be aware that you have banking facilities. I can't see a good reason not to do a direct payment from your Bank Account for the F&F, either by a single electronic payment that you'd set up yourself from your bank account, or over the phone using your Debit Card. The only thing you'd need to do is make sure the sum to cover it had been transferred to your Current Account before you do it. I don't think Savings Accounts have facilities for paying someone else other than yourself but I've never tried and really don't know


    Incidentally, debts still with original creditors don't stand as good a chance of being accepted for F&Fs as those with DCAs who buy them for pennies in the pound. If you haven't been paying on a DMP for all that long the chance is remote anyway. Creditors need to think that you are never going to be able to repay by regular means, either because you have had some life-changing event like redundancy etc which means your available income has dropped massively or, heaven forbid, that you've become seriously ill or divorced or something equally life-shattering. Paying token payments of 1 a month per creditor would possibly hasten the day, although I've been paying 1 to one of my creditors for nearly 2 years and they still won't accept a F&F less than 65% payable. You need to have a good reason as all my creditors wanted to know why I was dropping to 1 and insisted on an updated I&E from me to reflect the changes in my circumstances.


    I'm sorry this post is very doom and gloom but I'm speaking from my own recent experiences and thought you should have a warts-and-all account. All creditors have their own idiosyncracies, you may find some of yours do things slightly differently so it's obviously not a definitive version of what definitely will happen in your case.


    Good luck and please keep us posted on your progress. Anything that puzzles or worries you, just ask
    Originally posted by carbootcrazy
    1. You won't get anywhere till they default - that should take 3-6 months

    2. You can do cca requests at any time - may not have much effect with recent high street lenders but all you lose is 1

    3Don't do any banking (certainly not a savings pot) in an account in the same banking group as your debts.

    4. You can make the final payment any way you like. I suspect postal orders would carry a large fee.
    Originally posted by fatbelly



    Thank you fatbelly and Carbootcrazy for both directly answering my beginners questions and the time spent on your detailed responses. It certainly helps to know that there are people here to help Mr and Mrs terman though this.


    I will get saving for my F&Fs and send of my CCA requests. One of my Cards HS*C will be nearly 30 Years old so let hope they have had a spring clean.


    I may be going off thread so apologise but I don't know how to post else where and link in yet.
    I have one of my creditors Am*x who has already sent me a NOTICE OF DEFAULT and that if I don't pay in 14days they may take the following action. I believe this may have come out so quick as they think I am going Insolvent as I was considering this but have changed my mind for now. Am I correct in thinking for me this will actually be a good thing even though it reads very SCARY!!!!
    • fatbelly
    • By fatbelly 12th Jan 19, 4:45 PM
    • 13,472 Posts
    • 10,530 Thanks
    fatbelly
    I have one of my creditors Am*x who has already sent me a NOTICE OF DEFAULT and that if I don't pay in 14days they may take the following action. I believe this may have come out so quick as they think I am going Insolvent as I was considering this but have changed my mind for now. Am I correct in thinking for me this will actually be a good thing even though it reads very SCARY!!!!
    Originally posted by terman
    The notice has standard wording.

    It's actually a good thing that they are getting on with it. Interest should be frozen and they may sell the debt to a third party at a discount which would give you options later - exactly what you want.
    • sourcrates
    • By sourcrates 12th Jan 19, 5:15 PM
    • 16,694 Posts
    • 15,771 Thanks
    sourcrates
    I have one of my creditors Am*x who has already sent me a NOTICE OF DEFAULT and that if I don't pay in 14days they may take the following action. I believe this may have come out so quick as they think I am going Insolvent as I was considering this but have changed my mind for now. Am I correct in thinking for me this will actually be a good thing even though it reads very SCARY!!!!
    Originally posted by terman
    They are designed to be that way in order for you to make contact with them, subtle references as to what "could" happen, or what "may" happen, all specifically worded to mess with your mind, but all bog standard, computer generated gumpf they have to send you to comply with the consumer credit act.


    If you read them with a more open and relaxed mind, they are actually quite funny in what they threaten, "we may report your account to the credit reference agencies" Oow well i ran behind the settee at that one.........
    Last edited by sourcrates; 12-01-2019 at 5:19 PM.
    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.
    • carbootcrazy
    • By carbootcrazy 13th Jan 19, 8:57 AM
    • 6,007 Posts
    • 37,282 Thanks
    carbootcrazy
    Are you thinking of subject access requests?

    The 1 fee was set in the Consumer credit Act (I think 1974) and it would take a revision of that act to change it

    Both methods of getting information are covered here


    https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx
    Originally posted by fatbelly
    Thanks for the clarification, fatbelly. You are correct, as always


    I knew something that charged a fee has now become free. Even better that's it the SAR request as 10 was very steep. On the other hand, the size and weight of the parcel of stuff Lloyds sent me when I requested a SAR must have cost more than 10 in postage, paper and printer ink


    Apologies for any confusion, especially to terman who my post was in response to.
    Original Debt: 56804 (@02/13). Now: 1862.. Just one creditor to go

    Make 2019 in 2019 (#68) 452.71/2019

    Treats Fund 2019: 411.78
    • fatbelly
    • By fatbelly 13th Jan 19, 12:29 PM
    • 13,472 Posts
    • 10,530 Thanks
    fatbelly
    Statutory credit reports are also free now - used to be 2.

    https://www.experian.co.uk/consumer/statutory-report.html
    https://www.equifax.co.uk/Products/credit/statutory-report.html
    https://www.callcredit.co.uk/consumer-solutions/your-credit-report/statutory-credit-report
    • Lifeisforliving19
    • By Lifeisforliving19 14th Jan 19, 12:46 PM
    • 279 Posts
    • 1,903 Thanks
    Lifeisforliving19
    Oh my word...just had a reply from W*s**t. They have declined our 10% offer, but offered us a settlement figure of 85% of the outstanding debt!!! Don't think so thank you. Debts were recently sold to C*b*t, so I thought better chance of them being accepted now. Not being funny, but if we had that sort of cash lying around, we wouldn't be in this sort of debt in the first place How do they think people are going to come up with 85% of the total owed in a lump sum.
    DMP 2015 57,549, now 42,310 (26% paid)
    EF 300 Mortgage OP's this year 55
    Christmas 2019 20 SPC #110....keeping it a surprise
    There's a Great Big Beautiful Tomorrow, Shining at the End of Every Day!

    • carbootcrazy
    • By carbootcrazy 14th Jan 19, 12:57 PM
    • 6,007 Posts
    • 37,282 Thanks
    carbootcrazy
    Oh my word...just had a reply from W*s**t. They have declined our 10% offer, but offered us a settlement figure of 85% of the outstanding debt!!! Don't think so thank you. Debts were recently sold to C*b*t, so I thought better chance of them being accepted now. Not being funny, but if we had that sort of cash lying around, we wouldn't be in this sort of debt in the first place How do they think people are going to come up with 85% of the total owed in a lump sum.
    Originally posted by Lifeisforliving19
    Shame they turned down your offer but give them time and they'll probably contact you again with an improved offer especially as it's only been sold on relatively recently. It might take several stages before you can agree to meet somewhere that suits you both. It's just the games that creditors like to play.


    I started off some of my F&F offers, not just to Wescot, at 20% but I knew it was far too low to be accepted. Worth a try though. Wescot eventually settled mine at 30% payable for one and 35% payable for the other. One was still with the original creditor so I was really happy with that. Another creditor has now come down to a discount of 40% (60% payable) but I'm not biting yet. I'll just sit back and wait

    Good luck
    Original Debt: 56804 (@02/13). Now: 1862.. Just one creditor to go

    Make 2019 in 2019 (#68) 452.71/2019

    Treats Fund 2019: 411.78
    • Lifeisforliving19
    • By Lifeisforliving19 14th Jan 19, 1:09 PM
    • 279 Posts
    • 1,903 Thanks
    Lifeisforliving19
    Shame they turned down your offer but give them time and they'll probably contact you again with an improved offer especially as it's only been sold on relatively recently. It might take several stages before you can agree to meet somewhere that suits you both. It's just the games that creditors like to play.


    I started off some of my F&F offers, not just to Wescot, at 20% but I knew it was far too low to be accepted. Worth a try though. Wescot eventually settled mine at 30% payable for one and 35% payable for the other. One was still with the original creditor so I was really happy with that. Another creditor has now come down to a discount of 40% (60% payable) but I'm not biting yet. I'll just sit back and wait

    Good luck
    Originally posted by carbootcrazy

    Thanks CBC. Need to have a think and decide what to do next. We have 6 debts with them, between us and only been paying 1 a month for the last 10 months now, so you would have thought they would have the sense to realise that the offers we have made on these 2 are very good offers, as at 1 per month, they will never get paid.
    DMP 2015 57,549, now 42,310 (26% paid)
    EF 300 Mortgage OP's this year 55
    Christmas 2019 20 SPC #110....keeping it a surprise
    There's a Great Big Beautiful Tomorrow, Shining at the End of Every Day!

    • January2015
    • By January2015 14th Jan 19, 2:46 PM
    • 2,343 Posts
    • 5,539 Thanks
    January2015
    Thanks CBC. Need to have a think and decide what to do next. We have 6 debts with them, between us and only been paying 1 a month for the last 10 months now, so you would have thought they would have the sense to realise that the offers we have made on these 2 are very good offers, as at 1 per month, they will never get paid.
    Originally posted by Lifeisforliving19
    I've been paying 1 pm for over two and half years now to our debts. Had a couple of successes with F&Fs but otherwise creditors happy to keep accepting token payments in the hope something in our lives will change and they can get either the full balance or a higher percentage settlement at a later date. They don't seem to care how long it will take. Our debts are currently forecast at almost 50 years to clear at 1 pm. They really don't seem bothered - so, to be fair, neither am I
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
    • Lifeisforliving19
    • By Lifeisforliving19 15th Jan 19, 7:26 AM
    • 279 Posts
    • 1,903 Thanks
    Lifeisforliving19
    I've been paying 1 pm for over two and half years now to our debts. Had a couple of successes with F&Fs but otherwise creditors happy to keep accepting token payments in the hope something in our lives will change and they can get either the full balance or a higher percentage settlement at a later date. They don't seem to care how long it will take. Our debts are currently forecast at almost 50 years to clear at 1 pm. They really don't seem bothered - so, to be fair, neither am I
    Originally posted by January2015

    Well at the rate we are paying, ours will be a lot longer than that.... My worry is that as we are getting older, we could be left with all these debts and even though I am sure the DCA's will be happy to let us carry on paying well into our retirement, I always worry that if/when anything happens to us, our family will discover our debts.
    DMP 2015 57,549, now 42,310 (26% paid)
    EF 300 Mortgage OP's this year 55
    Christmas 2019 20 SPC #110....keeping it a surprise
    There's a Great Big Beautiful Tomorrow, Shining at the End of Every Day!

    • carbootcrazy
    • By carbootcrazy 15th Jan 19, 11:17 AM
    • 6,007 Posts
    • 37,282 Thanks
    carbootcrazy
    Well at the rate we are paying, ours will be a lot longer than that.... My worry is that as we are getting older, we could be left with all these debts and even though I am sure the DCA's will be happy to let us carry on paying well into our retirement, I always worry that if/when anything happens to us, our family will discover our debts.
    Originally posted by Lifeisforliving19
    I know exactly what you mean and much of what you say echoes my own feelings.


    I was already retired when I started my DMP in 2013 and was very aware of my age and time flying fast. Luckily, I was receiving both a reasonable employment pension and my state pension by then and was able to go at my debts at a furious pace. It was a mistake actually as I was so strict with my budget catagories and threw every available penny (and some!) at my DMP payments. For the first year I felt more stifled by my debt than in the pre-DMP days when I was having to rob Peter to pay Paul in order to get through the week. Once I'd come to my senses and cut myself a bit of slack by renegotiating my payments when my SC review came up I was much more relaxed about things. I still felt I needed to pay off my debts and come to the end of my DMP before I was too ancient though.


    Even my OH (we've been together for almost 50 years) knows nothing of my debts and the thought of him or family ever finding out was the main spur in my mission to be debt-free as soon as possible. I know of so many people who have died and left an unholy financial mess behind. After nearly 5 years on a DMP, when the debt balance was looking less scary, I decided to self-manage and drop to token payments so I could build up a fund to make F&Fs with. I'm still not totally debt-free yet but it shouldn't be much longer.


    The DCAs who wouldn't play ball and have declined my F&F offers seem totally unfazed by the fact that at this rate I'd be well over 200 years old before my debt would be cleared. I mention my age when I make my offers but they don't care at all. They must be bonkers! I know from what others on here have said that they often come back with an improved offer after a few months so I'm sitting it out for now. I sometimes feel almost tempted to settle at the figure they want just to be debt-free at last but it seems exorbitant given the thousands I've already paid off and I'm very stubborn
    Original Debt: 56804 (@02/13). Now: 1862.. Just one creditor to go

    Make 2019 in 2019 (#68) 452.71/2019

    Treats Fund 2019: 411.78
    • Lifeisforliving19
    • By Lifeisforliving19 15th Jan 19, 11:41 AM
    • 279 Posts
    • 1,903 Thanks
    Lifeisforliving19
    I know exactly what you mean and much of what you say echoes my own feelings.


    I was already retired when I started my DMP in 2013 and was very aware of my age and time flying fast. Luckily, I was receiving both a reasonable employment pension and my state pension by then and was able to go at my debts at a furious pace. It was a mistake actually as I was so strict with my budget catagories and threw every available penny (and some!) at my DMP payments. For the first year I felt more stifled by my debt than in the pre-DMP days when I was having to rob Peter to pay Paul in order to get through the week. Once I'd come to my senses and cut myself a bit of slack by renegotiating my payments when my SC review came up I was much more relaxed about things. I still felt I needed to pay off my debts and come to the end of my DMP before I was too ancient though.


    Even my OH (we've been together for almost 50 years) knows nothing of my debts and the thought of him or family ever finding out was the main spur in my mission to be debt-free as soon as possible. I know of so many people who have died and left an unholy financial mess behind. After nearly 5 years on a DMP, when the debt balance was looking less scary, I decided to self-manage and drop to token payments so I could build up a fund to make F&Fs with. I'm still not totally debt-free yet but it shouldn't be much longer.


    The DCAs who wouldn't play ball and have declined my F&F offers seem totally unfazed by the fact that at this rate I'd be well over 200 years old before my debt would be cleared. I mention my age when I make my offers but they don't care at all. They must be bonkers! I know from what others on here have said that they often come back with an improved offer after a few months so I'm sitting it out for now. I sometimes feel almost tempted to settle at the figure they want just to be debt-free at last but it seems exorbitant given the thousands I've already paid off and I'm very stubborn
    Originally posted by carbootcrazy

    I agree CBC,


    The DCA's don't seem to realise how long it is going to take us. I think there are people sat opening the post and answering the phones and they have some sort of check list that they work from, that shows the lowest they are allowed to accept. I don't think they are allowed to think outside the box and use their initiative. If only they realised that accepting 1000 now as a F&F, is actually preferable to me carrying on paying 1 per month....12 per year x 30years maybe...if I live to 92. That would mean in 30 years they will only recover 360 from me.....Their thinking really does baffle me
    DMP 2015 57,549, now 42,310 (26% paid)
    EF 300 Mortgage OP's this year 55
    Christmas 2019 20 SPC #110....keeping it a surprise
    There's a Great Big Beautiful Tomorrow, Shining at the End of Every Day!

    • sourcrates
    • By sourcrates 15th Jan 19, 1:03 PM
    • 16,694 Posts
    • 15,771 Thanks
    sourcrates
    You have to remember these companies buy debts in bulk, literally for pennies in the pound, not knowing what they have bought until they try to collect on them.

    A typical 1000 debt may be bought for less than 100 quid, so what they lose on one customer, they will undoubtedly make it back from another.
    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.
    • nextyeartina
    • By nextyeartina 15th Jan 19, 3:29 PM
    • 726 Posts
    • 1,056 Thanks
    nextyeartina
    I have 3 remaining debts which have been transferred to PRA Group. Are there any PRA success stories?


    TIA
    The 1,000 emergency fund challenge #163 - 536.16/1000
    • NeverendingDMP
    • By NeverendingDMP 15th Jan 19, 4:58 PM
    • 275 Posts
    • 1,086 Thanks
    NeverendingDMP
    I had two with pra. Settled one by paying 60 % owing. The other they asked for 80% so i said no thanks. I could only afford a settlement on one so picked the offer that would save me the most. I was worried offering on one would make then query the five pounds i pay on the other but they treat them completely seperate. They had owned it about 18 months when i settled. I know others have settled for less than 60% of the balance owed but it worked for me an was a huge boost to get below my 30k mark. I think i started about 45% of balance owed then negotiated from there.
    35,213 - Jan 2018, 30748 remaining.
    Mortgage 77230- Jan 2018
    74137 remaining.
    Emergency fund 156
    Make 2019- 359.17/2019
    1% challenge. Back to 1%....
    • Lifeisforliving19
    • By Lifeisforliving19 16th Jan 19, 7:39 AM
    • 279 Posts
    • 1,903 Thanks
    Lifeisforliving19
    I have 3 remaining debts which have been transferred to PRA Group. Are there any PRA success stories?


    TIA
    Originally posted by nextyeartina

    We offered at about 25% on PRA and they turned us down. Came back with about a 90% offer, so we just decided to leave it. That was on 3 small debts. That was almost a year ago and since they have told us debts are UE as they are unable to find the paperwork, so all the accounts have been put on hold and we haven't paid anything since. Just waiting to see what happens
    DMP 2015 57,549, now 42,310 (26% paid)
    EF 300 Mortgage OP's this year 55
    Christmas 2019 20 SPC #110....keeping it a surprise
    There's a Great Big Beautiful Tomorrow, Shining at the End of Every Day!

    • sh01
    • By sh01 16th Jan 19, 9:56 AM
    • 8 Posts
    • 1 Thanks
    sh01
    Hi, I stopped payments to the remaining creditors that I had last year when I was made redundant (they’ve been slow chasing me so now trying to get organised and negotiate some settlements). I’ve not updated my status with any or given my income and expenditure figures (I am now employed again and don’t want to if possible). Will I need to give them my I &E details in order to get a settlement agreed or will they usually agree without? I have debts with Zinc, Cabot and 2 unenforceable ones with Link (which ultimately i’d Pay a small settlement for as I just want them all gone so it’s worth it, however i’m Not rushing nor moving on the low offer i’ve given them). I have approx 4K available and a total of 14k debts so not expecting to clear them all but hoping to get a chunk removed if I can negotiate well so any tips welcome! At the moment i’m Just trying to be patient and wait for them to come back to me and make offers.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

747Posts Today

6,576Users online

Martin's Twitter