Full & Final Settlement Offers

[twodogs]

I have about £25k of unsecured debt on cards and a personal loan. I can raise about £15k (not a new loan). I want to offer my creditors a full and final settlement on a pro rata basis to each.

I was thinking of offering 50% to each for starters. I am currently on reduced income and paying £78/month between them.

 

Does anyone have any advice on this?

What percentage of the original loan would they usually sell to a DCA?

Is there, in general, a % value that they'd gladly accept?

 

Thanks in advance.

[the_shadow]

I have about £25k of unsecured debt on cards and a personal loan. I can raise about £15k (not a new loan). I want to offer my creditors a full and final settlement on a pro rata basis to each.

I was thinking of offering 50% to each for starters. I am currently on reduced income and paying £78/month between them.

 

Does anyone have any advice on this?

What percentage of the original loan would they usually sell to a DCA?

Is there, in general, a % value that they'd gladly accept?

 

Thanks in advance.

 

From what I've seen on here, (no personal experience) original creditors tend not to give big discounts.. Some creditors say they will only accept 90% of the debt amount although it depends if they have the legit paperwork and how much the debt is.

 

When they default and sell you off to a DCA tho its for approx 6p-15p in the £ so much more room for a profit for the DCA and a discount to the debtor.

 

Have you S78'd all your credit card creditors and s77 your loan creditor to see if they have the paperwork and its compliant with CCA1974, are these debts for cards and the loan older than april 2007?

 

 

S.

[twodogs]

This debt covers Mint credit card, Citicards, Mint loan and Tesco credit card. Apart from Citicards they're the same organisation and all their agreements are OK and enforceable. I wrote to them all with a payment plan, they terminated and sent default notices, so I'm expecting it to be passed on soon. Citicards are giving me the runaround with my CCA request but I'd like to get the best deal I can on the others.

[IdaInFife]

oo defaults.

 

do you have a default notice for each of them?

 

if so can tou scan them and post them up here deleting any personal info?

 

ida x

[joemay]

When making F&F settlements, check your t&cs first. I have been scrutinizing OH t&c and I noticed a section that states:

 

"We can delay in enforcing, or fail to enforce, our rights under the agreement without losing them. We may also accept part-payments marked as "payment in full" or similar wording without losing our right to claim full payment."

 

Correct me if I'm wrong, but it would seem to me that they could accept F&F offers using their own gobbledegoog, but at a later stage come after you for the remaining amount. Be very careful with settlements and ensure that you get them to put in writing that they will not come after you at a later stage or pass/sell on for collection.

 

Another thing to bear in mind is your CRFs. If it doesn't have defaults ensure that they don't mark it in such a way as to screw it up. Unfortunately I agreed to a settlement figure and didn't get this covered they have since screwed up my CRF:mad:

 

Don't agree to anything until you are 100% sure the remaining sum will not be chased at a later stage.

[IdaInFife]

that's why you send them your f&f so its worded correctly, if a company sends you a f&f always reply with your own worded letter

 

ida x

[twodogs]

When making F&F settlements, check your t&cs first. I have been scrutinizing OH t&c and I noticed a section that states:

 

"We can delay in enforcing, or fail to enforce, our rights under the agreement without losing them. We may also accept part-payments marked as "payment in full" or similar wording without losing our right to claim full payment."

 

Correct me if I'm wrong, but it would seem to me that they could accept F&F offers using their own gobbledegoog, but at a later stage come after you for the remaining amount. Be very careful with settlements and ensure that you get them to put in writing that they will not come after you at a later stage or pass/sell on for collection.

 

Another thing to bear in mind is your CRFs. If it doesn't have defaults ensure that they don't mark it in such a way as to screw it up. Unfortunately I agreed to a settlement figure and didn't get this covered they have since screwed up my CRF:mad:

 

Don't agree to anything until you are 100% sure the remaining sum will not be chased at a later stage.

 

Do you mind me asking what percentage of the outstanding balance you agreed and at what stage were you at (i.e. negotiating with creditor, DCA, defaulted, etc)?

[twodogs]

oo defaults.

 

do you have a default notice for each of them?

 

if so can tou scan them and post them up here deleting any personal info?

 

ida x

 

 

I will scan them in and put them up ASAP.

[joemay]

Do you mind me asking what percentage of the outstanding balance you agreed and at what stage were you at (i.e. negotiating with creditor, DCA, defaulted, etc)?

 

2 Bank accts (not under cca) not defaulted and were with in-house collectors. It was 50% discount.

 

If your accounts have been passed/sold onto DCA you probably will get a better rate. Before you even start negotiations check that the default & termination notices are OK. Scan them up and you'll get an opion of them.