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    • mikey55
    • By mikey55 30th Jan 18, 2:01 PM
    • 3Posts
    • 2Thanks
    mikey55
    Full and Final Settlement Offers
    • #1
    • 30th Jan 18, 2:01 PM
    Full and Final Settlement Offers 30th Jan 18 at 2:01 PM
    Hi all,

    I'm currently in a dmp with stepchange but have started negotiating full and final settlement offers with creditors including Cabot, PRA, Wescot and Link but some have replied saying that to consider or accept the offer they need more information. Most are asking for confirmation that priority payments are unaffected and up to date and want confirmation where the funds are coming from (family member) but some have also asked for a copy of my budget and even details of other creditors debts owed and payments amounts.

    As this is the first time I've attempted to arrange full and final settlements I'm not sure if this is normal or if I should provide them with this much information in order to agree settlements, or if this is just an attempt to get me to offer a higher amount?

    I'd appreciate any guidance negotiating these offers in the best and most effective way.
Page 1
  • National Debtline
    • #2
    • 30th Jan 18, 4:27 PM
    • #2
    • 30th Jan 18, 4:27 PM
    Hi mikey55


    Welcome to the forum. As accepting a full & final offer is at a creditor's discretion they are free to ask for any further information they would like. You don't have to provide it, but it will make them much less likely to agree to your offer if you don't.


    I would say the questions they have asked seem reasonable. Firstly they want to know that you are not trying to settle their debts when you have more important, priority debts outstanding such as rent arrears. They want to know where the money has come from in case, for example, you've sold a house and could actually afford to clear all the debt and not just part of it.


    The budget sheet they have requested will show them what their prospects of recovering the debt are if they don't accept your offer. And finally they want to know what other debts and payment offers you've made to ensure they are getting a fair deal. If you owed a different creditor the same amount as them, they wouldn't want to see you were offering the other debt twice as much as them. I hope this helps, good luck with the negotiating.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • mikey55
    • By mikey55 30th Jan 18, 5:46 PM
    • 3 Posts
    • 2 Thanks
    mikey55
    • #3
    • 30th Jan 18, 5:46 PM
    • #3
    • 30th Jan 18, 5:46 PM
    Hi and thanks for the advice.

    The amount I have to offer for full and final settlements would only cover about 20% of the total debts so I can't really see all the creditors accepting that at this stage. Some have already said it's too low while some have come back saying they can only accept figures around 80-90% although when I have said I can't manage that some have dropped to 55% and one around 30%.

    Although on the one hand I can see that they want a fair share I'm also thinking that if they know the total funds available then they might be more likely to insist on a higher settlement for themselves?

    I've also requested cca's from them all and the 4 main creditors who acknowledged receipt of cca requests have been over 6 weeks now and not produced anything as yet so I'm sending reminders and then wait to see what happens.

    Interested to hear other peoples guidance and experience of negotiating settlement figures.
    • January2015
    • By January2015 30th Jan 18, 8:07 PM
    • 2,351 Posts
    • 5,555 Thanks
    January2015
    • #4
    • 30th Jan 18, 8:07 PM
    • #4
    • 30th Jan 18, 8:07 PM
    Hi and thanks for the advice.

    The amount I have to offer for full and final settlements would only cover about 20% of the total debts so I can't really see all the creditors accepting that at this stage. Some have already said it's too low while some have come back saying they can only accept figures around 80-90% although when I have said I can't manage that some have dropped to 55% and one around 30%.

    Although on the one hand I can see that they want a fair share I'm also thinking that if they know the total funds available then they might be more likely to insist on a higher settlement for themselves?

    I've also requested cca's from them all and the 4 main creditors who acknowledged receipt of cca requests have been over 6 weeks now and not produced anything as yet so I'm sending reminders and then wait to see what happens.

    Interested to hear other peoples guidance and experience of negotiating settlement figures.
    Originally posted by mikey55


    I wouldn't bother sending reminders. You've asked them for the CCAs. Until they produce them the debt(s) are unenforceable. Sit and wait. I've been waiting close on 2 years for some CCAs to be provided. I'm not contacting them, I'm not paying them. I'm now one third of the way to those debts being statute barred. It will probably not happen as these debts are from 2012 onwards so if the creditor got their act together they could provide a reconstituted CCA - but the debts have been sold on and the DCA can't seem to get the information from the original creditor..... not my problem
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    • mikey55
    • By mikey55 31st Jan 18, 12:07 PM
    • 3 Posts
    • 2 Thanks
    mikey55
    • #5
    • 31st Jan 18, 12:07 PM
    • #5
    • 31st Jan 18, 12:07 PM
    I wouldn't bother sending reminders. You've asked them for the CCAs. Until they produce them the debt(s) are unenforceable. Sit and wait. I've been waiting close on 2 years for some CCAs to be provided. I'm not contacting them, I'm not paying them. I'm now one third of the way to those debts being statute barred. It will probably not happen as these debts are from 2012 onwards so if the creditor got their act together they could provide a reconstituted CCA - but the debts have been sold on and the DCA can't seem to get the information from the original creditor..... not my problem
    Thanks for your help. Sounds like it might be a good idea to wait a while then as the 4 main creditors haven't provided cca's as yet. Looks like I'll end up going self managed with the dmp if I stop paying those who haven't produced a cca, don't think sc would agree to that but not worried about self managing anyway.
    • penewise
    • By penewise 3rd Feb 18, 9:49 AM
    • 9 Posts
    • 1 Thanks
    penewise
    • #6
    • 3rd Feb 18, 9:49 AM
    • #6
    • 3rd Feb 18, 9:49 AM
    I'm in a similar situation. I'm waiting for replies to CCAs requested in December. I am paying through Payplan. At what point should I stop making payments if They don't reply and if a debt is sold on can the new company charge interest or is that only allowed by the original debtors?
    I would also ask what experiences have people had with debtors after they stop paying after being told that the debt is unenforceable?
    • sourcrates
    • By sourcrates 3rd Feb 18, 11:28 AM
    • 19,111 Posts
    • 18,041 Thanks
    sourcrates
    • #7
    • 3rd Feb 18, 11:28 AM
    • #7
    • 3rd Feb 18, 11:28 AM
    I'm in a similar situation. I'm waiting for replies to CCAs requested in December. I am paying through Payplan. At what point should I stop making payments if They don't reply and if a debt is sold on can the new company charge interest or is that only allowed by the original debtors?
    I would also ask what experiences have people had with debtors after they stop paying after being told that the debt is unenforceable?
    Originally posted by penewise
    The creditor is supposed to respond within 14 days, but these are just guidelines, in reality, it will take them up to two months to locate the original agreement, if they can at all.

    If after 2/3 months, they have not produced anything, then stop your payments if you want too.

    Once a debt defaults, that balance is frozen, no further charges or interest can be added, a debt purchaser cannot add further charges or interest unless the original agreement allows them to do so.

    Ive had numerous accounts where the CCA was not able to be produced, they know the score, as well as you do, they may ask for payment, but they cannot enforce their rights through the courts, they tend to go quiet after a while, most you wont hear from again.
    Last edited by sourcrates; 03-02-2018 at 11:32 AM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • penewise
    • By penewise 3rd Feb 18, 11:45 AM
    • 9 Posts
    • 1 Thanks
    penewise
    • #8
    • 3rd Feb 18, 11:45 AM
    • #8
    • 3rd Feb 18, 11:45 AM
    Thanks Sourcrates
    If I don't hear within the next six weeks I will instruct payplan not to pay them.
    • Snook1965
    • By Snook1965 14th Feb 18, 5:50 AM
    • 1 Posts
    • 0 Thanks
    Snook1965
    • #9
    • 14th Feb 18, 5:50 AM
    • #9
    • 14th Feb 18, 5:50 AM
    I have a loan through avant,total standing at ,£3400,I have recently come into some inheritance and want to settle it on FFS was going to offer £2400 would that be acceptable? 4u
    Yr plan now 2yrs remaining ,it's my ex,S debt not mine just want it gone
    • fatbelly
    • By fatbelly 14th Feb 18, 12:05 PM
    • 14,582 Posts
    • 11,687 Thanks
    fatbelly
    Avant are quite good at these things - I'd start lower - say 50%
    • Justice13075
    • By Justice13075 27th Jul 18, 12:44 PM
    • 1,859 Posts
    • 611 Thanks
    Justice13075
    Cabot is chasing me for a £2100 loan debt which they bought from a loan company. I have offered £600 as a full and final settlement but they don't seem interested. What shall I do next
    • sourcrates
    • By sourcrates 27th Jul 18, 1:29 PM
    • 19,111 Posts
    • 18,041 Thanks
    sourcrates
    Cabot is chasing me for a £2100 loan debt which they bought from a loan company. I have offered £600 as a full and final settlement but they don't seem interested. What shall I do next
    Originally posted by Justice13075

    Up your offer to them, or ask what they will accept.


    Are you a skilled negotiator ?


    No harm ringing them and try and agree a deal, just as long as anything agreed is backed up in writing.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, 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 expressed are mine and not the official line of MoneySavingExpert.com.
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
    • Justice13075
    • By Justice13075 27th Jul 18, 4:52 PM
    • 1,859 Posts
    • 611 Thanks
    Justice13075
    I contacted them by live chat and they said that at this time they will accept £1900 which I don't have. I offered them an increase from £600 to £800 what will happen next?
    • LOVEHB
    • By LOVEHB 30th Jul 18, 11:06 AM
    • 36 Posts
    • 29 Thanks
    LOVEHB
    Just wanted to share my F&F journey so far hopefully it will help.

    Managed to get 40% settlement figure with Lowells today on my biggest individual debt - this has now been paid and confirmed in writing woohoo. I have also discussed two debts with Cabot and they have come back at 60% after starting at 80%. This is still way out what I can afford but we are getting closer! Vanquis came back with 75% which is totally out of my range but I will call again to see what I can negotiate. Capital one has offered 50%. Lantern are offering 80% I would say that they were trying to get me to pay my 40% offer but the remaining balance would still remain. Didnt really appreciate their underhand wording tactic especially as I am doing everything I can so please be careful when you deal with these guys!
    • Fairyfeet2
    • By Fairyfeet2 14th Jan 20, 5:36 PM
    • 6 Posts
    • 0 Thanks
    Fairyfeet2
    Full and final settlement
    Hi following on from this thread, Iím going to be going through this process soon. Would it be in my favour to send my budget with my FFS when I approach each company I owe money to. Thanks
    • Willing2Learn
    • By Willing2Learn 14th Jan 20, 5:58 PM
    • 5,194 Posts
    • 4,837 Thanks
    Willing2Learn
    ... I’m going to be going through this process soon. Would it be in my favour to send my budget with my FFS when I approach each company I owe money to.
    Originally posted by Fairyfeet2
    Use the National Debtline sample letter - Full and final settlement offer

    You don't need to send anything else. The letter is all that is required.


    We normally recommend that you submit a CCA request for each eligible account, before you make any settlement offers. This is especially useful for older accounts.

    Debts - why, how & when to ask for the CCA agreement
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • fatbelly
    • By fatbelly 14th Jan 20, 6:44 PM
    • 14,582 Posts
    • 11,687 Thanks
    fatbelly
    Note the CCA request only works for Consumer Credit Act debts so not mobile phones or utilities - if in doubt check with us.
    • Fairyfeet2
    • By Fairyfeet2 15th Jan 20, 12:00 AM
    • 6 Posts
    • 0 Thanks
    Fairyfeet2
    Thanks for the reply , could you explain what a CCA is please. I’m on a DMP with stepchange , but hoping to approach the creditors myself . Cam creditors get access to your bank accounts or savings accounts. I’m in a position to settle a % of the debts, but want to keep a little money fir a rainy day ��
    • fatbelly
    • By fatbelly 15th Jan 20, 6:40 AM
    • 14,582 Posts
    • 11,687 Thanks
    fatbelly
    Thanks for the reply , could you explain what a CCA is please. Iím on a DMP with stepchange , but hoping to approach the creditors myself . Cam creditors get access to your bank accounts or savings accounts. Iím in a position to settle a % of the debts, but want to keep a little money fir a rainy day ��
    Originally posted by Fairyfeet2
    Willing2Learn's link contains a very detailed explanation of what a CCA is.

    As long as you are banking where you do not have debts, something that stepchange insist on before you enter a dmp, your creditors cannot see anything other than that you have a bank account. They can't see what you have saved in there.
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