Full and Final Settlement Offers - Stop press...

[bpatterson72]

Just a quick post for any Caggers out there who are in a position to offer their loan / card companies a "lump sum" full and final settlement deal. I have been advised by the CCCS over the last 12 months since I stopped paying my card and loan agreements due to the loss of our business. Since this time I have been making token payments of £1 pcm to each of my various creditors and have sent them budgets / lists of creditors. One of my main creditors was Lloyds to whom I owed £15,000 on a credit card and £12500 on a loan. I have a close relation who has offered to put a sum of money up to help settle the various debts at a reduced sum and I was just on the point of offering 25% to all creditors (including Lloyds) when they wrote to me offering to settle at 25p in the £1.00 (25%). I decided to offer Lloyds 10% which they refused but finally settled both accounts at 15% which I have paid through my relation (after I received a detailed letter from them confirming that this would settle the account in full and they would mark my account at the credit reference agencies as settled in full). It helps that the CCCS have written to me recommending bankruptcy and that I have been able to send this to all creditors. Nevertheless, if any of you have a fairy godmother out there, it just goes to show that you can't beat going in low. I should say that I was satisfied that both agreements were properly executed so they were fully enforceable - yours may not be in which case there are plenty of reasons why you should avoid paying anything at all......

 

I have had less success with other card / loan companies with Barclaycard offering to settle at 50%, HSBC looking for at least 75% of their money back and similar figures from HBOS group. I am in the process of studying these agreements to see if they are enforceable and will post up here in due course. Am certainly not in a position to raise that type of money.

 

Has anyone else had recent experience of full and final settlement rates (%), if so it might be useful to post up here with a brief outline of creditor, amount, time outstanding and % discount offered. It would also be good to know if the account is still with the original creditor or has been "sold / assigned" to a DCA / which one.

 

As I see it, the debtors position only improves with time as the banks must surely feel that there is less and less chance of recovering any money as the months and years drag on. That said, I am sure they would generally much rather sell to a DCA for a few pennies in the pound than accept a similar amount from a debtor; it wouldn't be good PR. I'd be interested in peoples opinion as to whether this is actually the best thing as far as the debtor is concerned (many of my debts are still "in house") because DCA's may be far more willing to settle on competitive terms?

 

Great site and a real asset for people like me who find themselves in a spot of bother.

 

BP:-)

[Andy01]

Hi BP Like you I was with CCCS and since last 8 yrs been paying £1.00. My advice from CCCS was the same to be a bankcrupt but I chose not to.I will post some of my settlement letters here next time. I achieved to settle almost 6 of them but now since I found this site I am willing to fight with them. Lots of caggers are here very experienced and will give you a very good advice. Like I said since I start requesting CCA's I have got rid of few more without paying any thing. So you are on right site to start with. Don't give up.Recommend this site to any one who needs help!

[dx100uk]

if a dca has brought a debt and the cca is ok, then i'd expect a figure of no more than 20-25% to settle.

 

if no cca exists, then i'd offer 10% with a like it or lump it deal.

 

the cca is the key!

 

dx

[SRR1972]

Hi

 

If you make a F&F does that have a negitive effect on your credit file - given its less than the previously agreed amount ? Or does it just show as the account is settled ?

 

Regards

 

Stuart

 

Opps just re-read post and got my answer - doh !!

Edited July 7, 2009 by SRR1972
Found answer

[nuke em]

As Loans, Mortgages etc are created at the point when you "sign". i.e otherwords the "Loan" is created out of thin air when you sign it, the real cost to the bank/lender is under 10% ( staff . admin, costs etc) , so they should settle for 10% ( and that still shows them a profit ) when they "sell" a debt on to a DCA, they only get 10 to 12% of the "amount" owed. ever wonder why they can sell off to cheap..? because the loan has cost them next to nothing and was only created on their computer screen. The magic of Fractional Reserve Banking . if you or i did it, it would be called fraud

 

read my post here on how 97% of all money in created in our economy

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/175668-how-credit-cards-bank.html

[amsgirl]

subbing:)

[amsgirl]

If we are fighting for a CCA with a DCA and therefore not admitting the debt, surely if we then go and offer 10% etc etc as a f&f are we not then accepting the debt and they can then march us all the way to the courts or have I got that wrong?????????????

[nuke em]

wrong thread

[itsamomentintime]

if a dca has brought a debt and the cca is ok, then i'd expect a figure of no more than 20-25% to settle.

 

if no cca exists, then i'd offer 10% with a like it or lump it deal.

 

the cca is the key!

 

dx

 

if they bought the debt but no cca exists, a figure of 0% is fairer

[diddydicky]

If we are fighting for a CCA with a DCA and therefore not admitting the debt, surely if we then go and offer 10% etc etc as a f&f are we not then accepting the debt and they can then march us all the way to the courts or have I got that wrong?????????????

 

no because

 

a/ all offer letters are marked WITHOUT PREJUDICE which means the contents cannot be revealed to a court

 

b/ all offers are made strictly without admitting liability but as an ex gratia payment

[diddydicky]

if they bought the debt but no cca exists, a figure of 0% is fairer

 

not necessarily and it depends on individual circumstances

 

no cca or faulty cca does not mean that the debt does not exist and it can be easily proved that you had the loan irrespective of if the cca is lost or defective

 

what it does is prevent the creditor from using the legal process to reclaim the deb- but the debt still remains and the creditor will still keep posting defaulted payments against you unless you have taken the matter to court yourself to get the debt ruled out.

 

some people (myself included) will stilll therefore offer a small settlement in order to clear the slate and get adverse credit removed/debt shown as fully satisfied