Full and Final Settlement on a Credit Card

[Broomfield]

I have stupidly run up a large debt (£30K plus) with two credit card companies. Due to reduced income, I will be unable to meet even the minimum payment. Both credit agreements are over 7 years old. I really do not wish to go down the route of trying to have the agreements cancelled because of technicalities; I run the debt up and wish to pay off as much as I can.

 

I will however be in a position to make an offer of paying around 70% of the total debt to both cards by extracting some cash from my pension fund. My thoughts are to write to both card companies offering a full and final settlement without affecting my credit rating. Is this a good idea? Or does anyone have some suggestions for me?

 

Thanks in advance.

Edited July 7, 2009 by Broomfield
Typo

[cerberusalert]

Have you considered sending a SAR first to determine whether unfair charges have been added which you can reclaim thus reducing the debt?

[Broomfield]

As far as i can see from the satements i have no charges (such as late penalties) and I have never had PPI or anything similar on the cards. The debt has built up because i stupidly paid only the minimum amount by DD every month over the last umpteen years, as it seems unlikley i will be able to go back into full time work in the forseeable future i would like to pay off these cards as they are my only personal debts. I am using all of the cash advance i can claim from my pension fund. And 70% is the maximum i can pay.

[cerberusalert]

You could always try a F&F if CC companies are anything like some of the mortgage companies today they may accept. The problem is you really don't have any leverage, whereas if there was an unenforceable CCA in place you would.

[Broomfield]

I see your point, i think i will fire off a letter to them asking for a settlement figure but won't sign it.....If i do not get anywhere then i will consider going down the unenforceable CCA route

Thanks

[havinastella]

You really need to put your feelings of guilt far far behind you.

 

You have paid them back twice over with the interest on the account.

 

Send the CCA and see what they come back with. You'll need that pension money when you retire!

 

JOgs

[Broomfield]

I know what you mean about the interest, i have just looked at a statement, i have paid the minimum amount of £349.81 and it has reduced my balance by the grand sum of just over £25.00:mad:. I am going to download the template tonight and send off in the morning.

Thanks

[cerberusalert]

Now you realise how these companies are absolute fools to themselves. As in your case you want to do the 'fair' thing and pay your debts, but because of their inate greed you have come to the conclusion that 'fairness' should be a two-way street.

[diddydicky]

I know what you mean about the interest, i have just looked at a statement, i have paid the minimum amount of £349.81 and it has reduced my balance by the grand sum of just over £25.00:mad:. I am going to download the template tonight and send off in the morning.

Thanks

 

feelings of guilt aside requesting copies of the CCA's will not affect your relationship with them in any way

 

but once you have them if they are (as is likely the older they are ) defective then it will have a major impact on your F & F offers which would be more in the order of 50% or maybe a bit less to keep a clean sheet

[kevin glancy]

okay, let me tell you the easiest way of putting this to you, if you write to a lender and offer them a settlement, they will hold you to it.

 

ring them tell them you are facing bankruptcy and you can either offer them a full and final of £whateever or tell them they will get zilch and they can deal with the receiver, id bet they will accept a full and final and no it wont affect your credit rating.

[diddydicky]

okay, let me tell you the easiest way of putting this to you, if you write to a lender and offer them a settlement, they will hold you to it.

 

ring them tell them you are facing bankruptcy and you can either offer them a full and final of £whateever or tell them they will get zilch and they can deal with the receiver, id bet they will accept a full and final and no it wont affect your credit rating.

 

best not to stoop to their level and base you arguments or offers upon lies

 

just keep it clean honest and to the point! offers of settlement made "without prejudice" remain confidential

[Talbot]

i've made an offer recently but not put without prejudice does it matter.

[cerberusalert]

i've made an offer recently but not put without prejudice does it matter.

 

At this stage no. Send the CCA requests to see what leverage you can use against them; http://www.consumerforums.com/resources/templates-library/86-debt-collectors/581-cca-request-letter enclose a £1 postal order, print your name on the letter do not sign it & send recorded delivery.

[diddydicky]

i've made an offer recently but not put without prejudice does it matter.

 

well yes it can matter very much depending on exactly what you have written,

 

if you are challenging the agreement the other side would almost certainly use it to show you accept liability

[Talbot]

Thanks for replying, sorry to hijack. No I am not contesting the agreement, just struggling to pay big time. Hoping to borrow some to get it all cleared.

[diddydicky]

Thanks for replying, sorry to hijack. No I am not contesting the agreement, just struggling to pay big time. Hoping to borrow some to get it all cleared.

 

have you not applied for copies of the agreements?

 

you should as this will help determine what you offer and what they are likely to accept

[Talbot]

unfortunately my agreements are electronic and as far as i know its a very tricky thing to prove a fake tick box. I have read around extensively and no-one seems to have the answers in how to prove or dis-prove:(

[cerberusalert]

It depends when it was taken out online.

[Talbot]

2007