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  • FIRST POST
    simona30
    Negotiating reduced payment in full and final settlement?
    • #1
    • 13th Mar 11, 10:19 AM
    Negotiating reduced payment in full and final settlement? 13th Mar 11 at 10:19 AM
    I took out a loan in 2004 for 5000 with the Halifax. After falling behind on payments, the loan was referred to Blair Oliver and Scott who it seems, from reading other posts, are part of the Halifax.

    After making a payment of 1000 in 2008, I've been making payments of 70 per month. They have contacted me since to revise the payments upwards but I haven't been able to pay more as I have been a student I was made redundant at the end of '08.
    I recently saw my credit report, which showed that payments over the last 36 months have been late (status code 6) even though I have made all the payments agreed with BOS on time since 2008.

    I want to settle the debt fully - But I can't afford to pay the full sum. I will still be a student for another year too. How much is realistic to offer BOS? 30 - 50%? Has anyone successfully reduced their settlement with them? Would an reduced settlement affect my credit rating? Please help!
Page 1
  • Apples2
    • #2
    • 13th Mar 11, 10:26 AM
    • #2
    • 13th Mar 11, 10:26 AM
    Your credit rating is already smashed to bits if you are making reduced payments.

    You aren't making the payments you agreed to in the original agreement so it is right that they record these payments as late.

    You are best advised to request a settlement figure from them, then make them an offer based on that settlement figure.

    I wouldn't expect them to roll over and accept 30-50% but at you can use that as a starting point for negotiations.
    Make sure everything is done in writing though so there is an audit trail.

    Lots of people pay the settlement figure as given over the phone only to be pestered for the remainder afterwards. It's funny how records of the calls go missing so again, make sure it is all in writing.
  • simona30
    • #3
    • 13th Mar 11, 11:12 AM
    • #3
    • 13th Mar 11, 11:12 AM
    Thanks for the swift reply!

    What I really wanted to get the bottom of was whether a final agreement to settle a reduced debt would hurt my credit rating or simply show up as 'fully satisfied'?

    I must point out that an agreement to pay a reduced amount in the first instance does not necessarily mean that a person's credit rating is "smashed to bits". I have been able to get credit during the past 5 years or so and was also successfully credit checked when I started work at two major banking institutions in 2007 and 2009.

    I will contact BOS in writing to request a settlement sum and then make them an offer on that. I'd be interested to hear other people's experiences of BOS on negotiation figures - thanks!
  • opinions4u
    • #4
    • 13th Mar 11, 11:38 AM
    • #4
    • 13th Mar 11, 11:38 AM
    How much is realistic to offer BOS? 30 - 50%?
    If you can afford 50%, why would you offer 30%?
    • chalkie99
    • By chalkie99 13th Mar 11, 12:10 PM
    • 1,541 Posts
    • 1,808 Thanks
    chalkie99
    • #5
    • 13th Mar 11, 12:10 PM
    • #5
    • 13th Mar 11, 12:10 PM
    I haven't been able to pay more as I have been a student I was made redundant at the end of '08.
    Originally posted by simona30

    I started work at two major banking institutions in 2007 and 2009.
    Originally posted by simona30
    Doesn't seem very consistent - Why couldn't you pay in 2009?
  • simona30
    • #6
    • 15th Mar 11, 4:45 PM
    • #6
    • 15th Mar 11, 4:45 PM
    I got hired in 2007 (credit checked), fired at the end of 2008 and worked for free in 2009 to get work experience (but needed to be credit checked even to get that).

    The truth is I can't afford to pay any of it and will have to borrow off friends/family to clear it. I want to know ranges as there would be no point offering 30% if they wouldn't even sniff at it and I wanna borrow as little as possible to pay off the debt. That's why I'm looking for advice from people who've dealt with BOS to get a better idea of what's possible.
    Got this debt when I was young and I haven't had to deal with any debt collectors in the past. so any insight on dealings with BOS much appreciated....
    • Tixy
    • By Tixy 15th Mar 11, 4:58 PM
    • 31,062 Posts
    • 39,469 Thanks
    Tixy
    • #7
    • 15th Mar 11, 4:58 PM
    • #7
    • 15th Mar 11, 4:58 PM
    You might be better off posting on the DFW board where its more likely that people will have experience of F&Fs with BOS.

    I would say as the debt hasn't yet been sold on then 30% is likely to be too low. But with any negotiation you need to start by offering low so you can increase a little if they won't accept your first offer.

    Usually they will only agree to mark your file as partially satisfied although you could try negotiating for fully satisfied. However when was the default registered on your credit file? The debt will only show for 6years from that date anyway, so even if they will only mark it as partial then it will only be on there for the remainder of that 6years, however long that may be.

    Have you read the national debtline factsheet on F&Fs - if not thats worth a read.
    A smile enriches those who receive without making poorer those who give

    or "It costs nowt to be nice"
    • feeling-good
    • By feeling-good 15th Mar 11, 7:55 PM
    • 54 Posts
    • 67 Thanks
    feeling-good
    • #8
    • 15th Mar 11, 7:55 PM
    • #8
    • 15th Mar 11, 7:55 PM
    If you want to pay less than the full amount owed it is not full and final settlement, it is called a short settlement. As a point of information for you, it is very very unlikely that they would accept an offer anywhere near to 30 to 40 %. As a guide if you have been in difficulty and are now in a position to make a short settlement a guide which is normally acceptable to a loan company, bank etc is 80% of the total owed.
    It will go on your credit file as " paid agreed short settlement " this will effect your credit rating. But if you have been having difficulty in paying anyway and making either reduced or missed payments, your credit file is already shot to pieces anyway so dont worry. It will clear in 6 years.
    How do i know this, In january i made settlemets with all my creditors after being on a dmp for 5 years. For your info Egg refused anything but the whole 100%, Barclays accepted 60%, Lloyds group accepted 80%.
    Hope this helps, probably not what you wanted to hear but as a starting point try 60%, a debt management charity would not offer below this figure as a starting point as it would not be accepted.
    • geoffky
    • By geoffky 15th Mar 11, 9:03 PM
    • 6,600 Posts
    • 9,241 Thanks
    geoffky
    • #9
    • 15th Mar 11, 9:03 PM
    • #9
    • 15th Mar 11, 9:03 PM
    If you want to pay less than the full amount owed it is not full and final settlement, it is called a short settlement. As a point of information for you, it is very very unlikely that they would accept an offer anywhere near to 30 to 40 %. As a guide if you have been in difficulty and are now in a position to make a short settlement a guide which is normally acceptable to a loan company, bank etc is 80% of the total owed.
    It will go on your credit file as " paid agreed short settlement " this will effect your credit rating. But if you have been having difficulty in paying anyway and making either reduced or missed payments, your credit file is already shot to pieces anyway so dont worry. It will clear in 6 years.
    How do i know this, In january i made settlemets with all my creditors after being on a dmp for 5 years. For your info Egg refused anything but the whole 100%, Barclays accepted 60%, Lloyds group accepted 80%.
    Hope this helps, probably not what you wanted to hear but as a starting point try 60%, a debt management charity would not offer below this figure as a starting point as it would not be accepted.
    Originally posted by feeling-good
    WRONG IS SO MANY WAYS.....i settled once at 10% for a lot more than 20k,,,do a search and be educated
    • TheLostSheep
    • By TheLostSheep 15th Mar 11, 9:49 PM
    • 184 Posts
    • 79 Thanks
    TheLostSheep
    If you want to pay less than the full amount owed it is not full and final settlement, it is called a short settlement. As a point of information for you, it is very very unlikely that they would accept an offer anywhere near to 30 to 40 %. As a guide if you have been in difficulty and are now in a position to make a short settlement a guide which is normally acceptable to a loan company, bank etc is 80% of the total owed.
    It will go on your credit file as " paid agreed short settlement " this will effect your credit rating. But if you have been having difficulty in paying anyway and making either reduced or missed payments, your credit file is already shot to pieces anyway so dont worry. It will clear in 6 years.
    How do i know this, In january i made settlemets with all my creditors after being on a dmp for 5 years. For your info Egg refused anything but the whole 100%, Barclays accepted 60%, Lloyds group accepted 80%.
    Hope this helps, probably not what you wanted to hear but as a starting point try 60%, a debt management charity would not offer below this figure as a starting point as it would not be accepted.
    Originally posted by feeling-good
    Completely misleading.... never even heard of short settlement as you call it. Banks will and do settle for anything from as low as 20-30% upwards.

    As with any negotiation, start low and meet around the 40-50%mark. Keep everything in writing and say the offer of F&F is timebound.
    29,500+ of debt cleared Jul 2010 >> Dec 2011.....
    Now facing same again with 65,000
  • crazyguy
    I took out a loan in 2004 for 5000 with the Halifax. After falling behind on payments, the loan was referred to Blair Oliver and Scott who it seems, from reading other posts, are part of the Halifax.

    After making a payment of 1000 in 2008, I've been making payments of 70 per month. They have contacted me since to revise the payments upwards but I haven't been able to pay more as I have been a student I was made redundant at the end of '08.
    I recently saw my credit report, which showed that payments over the last 36 months have been late (status code 6) even though I have made all the payments agreed with BOS on time since 2008.

    I want to settle the debt fully - But I can't afford to pay the full sum. I will still be a student for another year too. How much is realistic to offer BOS? 30 - 50%? Has anyone successfully reduced their settlement with them? Would an reduced settlement affect my credit rating? Please help!
    Originally posted by simona30

    Geoffkky,

    Is completely right go in with a very low offer and explain to them that your financial situation is going to mean this debt will carry on for a long time I would go in in at approx 15-20% and keep negotiating with them the first offer you make they will more than likely come back to you and ask for approx 80% or more of whats owed in total but whatever they get back in one lump sum is better than waiting a course of a few years for and the difference is put in as a tax right off so they are not losing anything !
    • feeling-good
    • By feeling-good 20th Mar 11, 11:37 AM
    • 54 Posts
    • 67 Thanks
    feeling-good
    WRONG IS SO MANY WAYS.....i settled once at 10% for a lot more than 20k,,,do a search and be educated
    Originally posted by geoffky
    This is not wrong at all, think abut it, the banks are suffering huge losses at the moment, through their own fault of course, they need to recover as mouch money as possible, why would a creditor accept 10 to 20% when they can keep getting monthly payments off you and keep racking up charges and interest ?
    there are so many people defaulting, even more reclaiming unfair charges PPI etc they cannot keep this up ! they are looking at getting more and more of the debt owed to them repaid !
    I have searched through all these posts and cannot find anyone on these posts who has been able to get a full and final settlement at 20% probably as there is no such thing ! how can a payment be FULL and final if you are not paying the full amount ? that is why it is called a short settlement !
    You may have in the past been able to get a settlement at 20% but that was twhen everyone was hunky dory and paying what they owed ! nowadays near everyone is defaulting !
    • feeling-good
    • By feeling-good 20th Mar 11, 12:00 PM
    • 54 Posts
    • 67 Thanks
    feeling-good
    also know as a Partial setlement, and I have googled it and looked at lots of sites to confirm what I have said and I am correct. It will show on your credit file as Partially Satisfied for the next 6 years
    • YorkshireBoy
    • By YorkshireBoy 20th Mar 11, 12:07 PM
    • 30,668 Posts
    • 18,677 Thanks
    YorkshireBoy
    It will show on your credit file as Partially Satisfied for the next 6 years
    Originally posted by feeling-good
    I believe the correct word is may, if you're not smart enough to cover that angle in your negotiations with them.
  • Poosmate
    WRONG IS SO MANY WAYS.....i settled once at 10% for a lot more than 20k,,,do a search and be educated
    Originally posted by geoffky

    "Once"? When was that? "Once" times were good for many, now times are hard for everyone.

    What was acceptible "once" is not necessarily what is acceptible now.

    Poo
    One of Mike's Mob, Street Found Money 1.66, Non Sealed Pot (5p,2p,1p)6.82? (0 banked), Online Opinions 5/50pts, Piggy points 15, Ipsos 3930pts (25+), Valued Opinions 12.85, MutualPoints 1786, Slicethepie 0.12, Toluna 7870pts, DFD Computer says NO!
    • geoffky
    • By geoffky 20th Mar 11, 2:24 PM
    • 6,600 Posts
    • 9,241 Thanks
    geoffky
    "Once"? When was that? "Once" times were good for many, now times are hard for everyone.

    What was acceptible "once" is not necessarily what is acceptible now.

    Poo
    Originally posted by Poosmate
    Before the sky fell in on the world..it was a long time ago i admit..2002/3 i think and that was for a debt from the 90s house crash.so yes my info may be a bit outdated...but if you do not try you will not get.
    • feeling-good
    • By feeling-good 20th Mar 11, 5:20 PM
    • 54 Posts
    • 67 Thanks
    feeling-good
    I did not mean to give people the wrong information, I still believe I have not, it's just that this is how the banks etc seem to be going at the moment regarding settlements. Lets not argue, these forums are for support after all.....
  • Hanky Panky
    WRONG IS SO MANY WAYS.....i settled once at 10% for a lot more than 20k,,,do a search and be educated
    Originally posted by geoffky
    Actually f-g has it pretty much spot on - you MAY have been lucky enough to get a lower amount agreed but at the level the op describes it is very rare particulalrly when you bear the OP's circumstance into the mix - I would go further and state 'unheard of'.

    Who's the educated one ?
    Last edited by Hanky Panky; 21-03-2011 at 1:35 PM.
    • DGJsaver
    • By DGJsaver 21st Mar 11, 1:05 PM
    • 2,716 Posts
    • 1,115 Thanks
    DGJsaver
    It will depened on what stage the debt is at , once sold on to a third party , your cooking on gas for FUL AND FINAL settlements....
  • ashabdi
    I negotiated a settlement with M&S to repay a certain amount as I had been made redundant just before being of pensionable age. I have a letter saying this and saying it has been recorded with a credit rating company, is there any other come back on this kind if settlement ie tax implication, death etc.
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