Full and final settlement

[Binker]

Hi,

 

Just wondered if you could glance an eye over my letter and I would welcome your comments/suggestions.

 

Its self explanitary but we have about 5 creditors we are looking to make full and final settlements to in order to make a clean break as we are moving abroad. All debts are with the original credit card companies and we will use the standard calculation provided by national debtline to pro-rate the payments to the cards.

 

 

 

WITHOUT PREJUDICE

Dear Sir/Madam

Re: Account No: xxxxxxxxxx

I write with reference to the money which you are claiming on the above account.

I can confirm that I am unable to offer to pay the money which I owe in full after falling into severe financial hardship, accumulating debts with multiple creditors. My only option now is to sell my house, on which I have just accepted an offer, and use the equity to repay both mine and my Husbands creditors. We will then be leaving the country to live with relatives abroad (rent free) and start a fresh.

From the equity on our house after sale costs, I can raise a sum of £xxxx.xx and I want to offer this as an ex-gratia payment in full and final settlement of the account. This offer is made on the clear understanding that, if accepted, neither you nor any associate company will take any other action to enforce or pursue this debt in any way whatsoever and that I will be released from any liability.

I also request that, if accepted, you will mark any entry on a credit reference agency file relating to the above account as "satisfied" in full.

We have been informed that the completion date on our house sale is provisionally xxth October 2007 and payment can be made to you within 48 hours of this, providing I receive your written agreement of this offer and method of payment.

I look forward to receiving your reply.

Yours faithfully

[The GodMother]

sounds reasonable to me. Just one bit of advice make sure you get everything in writing before payments are made and evidence to say they recieved payments.

[Binker]

Hi GodMother,

 

Thanks for your advice, i'll make sure i get the written proof.

 

Binker

[The GodMother]

your welcome keep me informed of what they say please.

[linz2011]

Hi Binker if you go to National Debtline, for FREE CONFIDENTIAL and INDEPENDENT ADVICE call 0808 808 4000 they have sample letters on their which you can use.

 

Like The G says do make sure you get it in writing and also make sure that your credit file is adjusted accordingly.

 

Have you ascertained there are no unlawful charges on there that you can claim back prior to F&F?

[Binker]

Hi Linz2011,

 

I used their template letters to create mine and there are no charges as up to now we have been juggling and managed to keep up all the monthly payments, but its getting to much now and our house sale couldn't have come at a better time.

 

Binker

[linz2011]

Hi

 

Thats good then - if you are paying monthly and have kept your accounts up to date, then I am afraid most companies would not look at F&F, you can try but IMO I do not think they will accept them

[Binker]

Hi,

 

I know, i feel like you do your best and it always works against you in the end.

I'm hoping the whole moving abroad situation will prompt them to think. I am offering 40% of the debt as its the total equity split between them all.

 

Thing is, we will not have jobs to start with where we are going which may sound foolish but believe me its more than just debts thats pushed us along this path and its the best thing all round.

 

Binker.

[powelll]

Just a thought - if the F & Fs are refused then you may want to look at other options ( National Debtline can offer advice on these as well ). Or you may decide that you don't want to use you equity to pay the debts off ( you are not obliged to use this money ).

 

You could think about offering a small monthly payment based on what you can afford after essentials are covered - this may be a token or zero offer by the sounds of things at least initially...

 

If you have £100 or more as a surplus figure you could consider a free DMP eith either CCCS or PayPlan - this can be done from abroad as long as you have a UK based bank account to make payments.

 

Just a couple of thoughts... best of luck

[linz2011]

Hi Binker

 

Good luck with everything I hope it all works out for you and you have a better life abroad. x

[Binker]

Hi,

 

Powelll: Thanks for the idea's, thats exactly what i wanted. Different options to mull over. Ideally a clean break would be great to start our new life. But its good to have other options and to be honest I can think of a million ways to spend the equity!!!

 

Linz2011: Many thanks for the well wishes. Quite nervous about our 'new life' but exited too. Haven't got rose coloured glasses as i'm quite a realist but i'm sure we will make the best of everything we can. It'll be nice to be with family too as we have not been able to see that much of them before due to distance

 

Binker

[powelll]

It's also worth bearing in mind that these debts should only affect your UK cred ref file so if you aren't looking to return to the UK it won't make any difference. Also depending on where you are moving to the creditors may be quite limited in enforcing the debt ( they could still go for CCJ in the UK but could only enforce it abroad if a reciprocal agreement is in place ). You also have to remember that there will be costs to them in tryin gto enforce a CCJ abroad so they may decide it isn't worth the hassle.

 

I'm in no way saying avoid paying your debts but if the creditors refuse reasonable offers of repayment it's worth knowing what the outcome could be ie not the worst thing in the world

[The GodMother]

Powell,

 

I did not no that debts only affect the credit history of the U.K thank you for that piece of information. I also did not no that a ccj was not enforcable abroad and if they were to try it would cost them. Is there any where that they can enfoce a ccj like Australia as family members are thinking of moving out there.

[Having_A_Knightmare]

Blinker

 

Are we talking a lot of creditors and a lot of money.

 

HAK

[Binker]

Hi,

 

Its about 28K split between 5 cards some only in my name some only in my husbands.

 

Binker

[nuke em]

Here's my take on this

 

if you are not behind on payment the creditors are unlikely to a) believe you and b) to accept your offer, plus i dont know which country you are going to move to but be aware that ...

 

"Germany and Canada have reciprocal agreements with the UK when it comes to tracing debtors and debt collection practices. There is not much information available regarding other countries with such agreements although a search on the web may reveal more, it is possible that creditors do not want this information to be readily available.

A reciprocal agreement in the UK means a UK Court can enforce a CCJ using the legal system of the other country. If there is no such agreement in place, a creditor can sell a debt to an agency in the relevant country and debt recovery procedures will commence under the law of that land.

Having resources to trace a debtor or having agreements with other countries, or even the possibility of selling the debt to an agency in the appropriate country does not automatically mean that a creditor will be successful in tracing a debtor. In some cases, people do get away with it. A creditor has a period of 6 years from the last time a person acknowledged a debt to use the legal system to recover monies. However, if a creditor has taken legal action on an account, the debt can be legally recoverable indefinitely".

 

I think the best solutiuon is to let your house sale go through, before completion, speak to Payplan/CCCS whilst you are still domiciled in the UK, get them to propose a DMP. I wouldn't be telling them (creditors) you are moving abroad. That way you can pay off what you can afford month to month. Why give info that is not relevant, if you have moved abroad and have no assets here it still COSTS time & money to track you down, at least this way with a DMP you can remain in some control

[Binker]

Hi,

 

Just googling, i've managed to find many times statements on various websites about Germany and Canada having reciprocal agreements with the UK but the only thing I found for other countries were websites for DCA's specialising in EU searches and debt collections for people who have 'dissapeared' from the UK with debts be it utilities, credit agreements or commercial.

 

So according to the DCA's (who we know always act truthfully and lawfully etc ) its possible to chase a debt anywhere throughout the EU.

 

Is this so? Does anyone know any different?

 

Binker

[nuke em]

Binker , it my understanding thata creditor can sell a debt to an agency in the relevant country and debt recovery procedures will commence under the law of that land. I guess it all down to a DCA and how much the debt can be harvested into v what it will cost to recover

[sequenci]

You can be chased anywhere in The EU, most states are covered by The Brussells Regulation. There are various other laws and reciprocal agreements covering many countries around the world. To be honest there are not *that* many countries without reciprocal agreements these days although The USA is one of them!

[Chesterexpress]

Binker, from what you say your not behind with repayments, therefore with all due respect why on earth would they want to accept 40% to settle the accounts? You have had the benefit of the money, therefore it is upto you to pay it back in full and not try and wriggle out of paying your debts.

[sequenci]

Binker, from what you say your not behind with repayments, therefore with all due respect why on earth would they want to accept 40% to settle the accounts? You have had the benefit of the money, therefore it is upto you to pay it back in full and not try and wriggle out of paying your debts.

 

Is there not a change of circumstances pending?

[Chesterexpress]

Is there not a change of circumstances pending?

 

There may or may not be, however that doesn't alter the fact that the OP has had the money and has a responsibility to repay it in full. Could you imagine what would happen if we all did what they are proposing? Sorry, but people have to take responsibility for their actions.

[Binker]

Binker, from what you say your not behind with repayments, therefore with all due respect why on earth would they want to accept 40% to settle the accounts? You have had the benefit of the money, therefore it is upto you to pay it back in full and not try and wriggle out of paying your debts.

 

Hi all,

 

I'm not at all trying to wriggle out of them. This thread just seemed to have gone down this route and i've gone with it, but personally I wouldn't feel comfortable just leaving it, as it will always catch up with you and its not right morally. I do know people who have done it hence my added interest i guess.

I am truly hoping they will accept a settlement (doubt it though based on your opinions) as we will have that lump sum available for the only time in our life and we would be able to start afresh. Otherwise its going to have to be negotiation time for reduced amounts, as we have struggled and struggled to keep paying the monthly payments with no blips believing it the right thing to do and we can no longer afford to do it even if we stayed in the UK let alone when we leave. For example, from the £150 a month on one card, only £20 goes toward the debt which is a bit sickening, we'll be going forever at that rate.

 

Binker

[Chesterexpress]

But why should they accept your offer? I would love it if my mortgage company would accept a 40% full and final offer to settle it, but that aint going to happen and why should it? As I said earlier you have had the benefit and now you must repay it, life may be tough but it was your decision to borrow the money. Sorry if I appear harsh, but I prefer to be honest in what I say. Also I have been in a similar situation and it was hard work getting through it but I came out the other end knowing I did it the right and honourable way.

[sequenci]

A Full & Final offer is just that. The acceptance would be discretionary on the part of the creditor, it is totally down to their own perogative if they wish to accept the payment or not. There is no moral argument here at all imho.