Full & Final Settlement Offers - Advice please

[bobdauilda]

Thanks.

Auggloop- were you already on a dmp with them or in default? Did they mark your credit file as settled in full with no penalties? how did you get them to offer such low figures? Is there a template letter for F&Fs anywhere?

[maroondevo52]

Is there a template letter for F&Fs anywhere?

 

Should find one in here............

 

http://www.consumeractiongroup.co.uk/forum/general-debt-issues/20758-creditors-dcas-letter-templates.html

 

Regards.

 

Scott.

[auggloop]

I like many people am terrible with debts have been for years i was with greg penningtons for a while who dealt with everything then changed to another company when i got deeper soon into my association with them tsb contacted me with the settlement low i know and was too good to pass up so i took it, they contacted me i didnt seek f&f they had passed the debt on a couple of times and guess they got fed up with a £1 a month

[andie_303]

Did they close your accounts after accepting the F&F's?

 

Yes they did and the company that had late payment markers on my credit file removed those also and marked as fully settled and satisfied.

[bobdauilda]

I am in the situation that I have not been in default with any of my creditors but now through not being able to work due to injury I will soon be unable to make the monthly payments. I owe 60k on credit cards/loans and parents have offered a lump sum to me to try and get rid of the debts but I want to try a F&F without my credit ref file getting damaged. Do you think this is possible? Has anyone tried this without being in default or starting reduced payments?

[bobdauilda]

Thanks it all sounds too good to be true! Maybe you are just lucky!?! Did you just write to the customer services department with the offers?

 

I am in the situation that I have not been in default with any of my creditors but now through not being able to work due to injury I will soon be unable to make the monthly payments. I owe 60k on credit cards/loans and parents have offered a lump sum to me to try and get rid of the debts but I want to try a F&F without my credit ref file getting damaged. Do you think this is possible? Has anyone tried this without being in default or starting reduced payments?

[andie_303]

Thanks it all sounds too good to be true! Maybe you are just lucky!?! Did you just write to the customer services department with the offers?

 

I am in the situation that I have not been in default with any of my creditors but now through not being able to work due to injury I will soon be unable to make the monthly payments. I owe 60k on credit cards/loans and parents have offered a lump sum to me to try and get rid of the debts but I want to try a F&F without my credit ref file getting damaged. Do you think this is possible? Has anyone tried this without being in default or starting reduced payments?

 

 

Hi Bobdauilda - if you read the previous page where I have posted you will see how i did it and the letter I used.

 

Basically I did not make an "offer" - i worked out what I wanted to pay them and sent the a letter (pervious page) with the cheque already enclosed. and the stipulations that if banked it was accepted in F&F and all negative records removed from my credit and the account closed and marked as fully settled.

 

Now the letter was signed as coming from my mother as well as the cheque coming from my mothers bank. There are clear rules on banking 3rd party payments in F&F where a cheque from myself is more a grey area - they can bank and still come back at you in some instances.

 

If you are going to do thisI cannot stress enough that it should come via a 3rd party. The case law surrounding this is also ont he previous page.

[bobdauilda]

Thanks so this letter was sent from your mother/her address to your creditors on your behalf. Didn't you include your address too or is just your name and account number sufficient? Did you try this with any other companies or just the two you mentioned ie a 100% success rate in your experience thus far....?

 

 

The letter I used was along these lines

 

Acc Number xxxxxxxxxxx

 

Dear Sir/Madam

 

Please find enclosed a cheque for the amount of £xxxx for full and final settlement of the above account.

This cheque is sent on the clear understanding that if presented to the bank on receipt of cleared funds the above account will be closed, ANDIE_303's liability discharged and credit reference agents updated showing the account as fully satisfied.

 

Should you not be able to fulfill this request please return the cheque to myself at the above address within 7 days.

 

Yours Faithfully

 

 

 

Also written on the back of the cheque was "In full and final settlement of acc number xxxxxxxx - not to be used for any other purpose"

 

The cheque was then photocopied front and bank with the accompanying letter and sent recorded delivery.

[sunboy]

Hi

I am in a similar situation to some of the guys above - I haven't defaulted on anything yet but that day may come soon and I want to avoid it with F&F settlements if I can.

I have a personal loan with 11k left and 3 credit cards totalling around 38k. Really interested in the idea from andie_303. has anyone else done this with success?

Is it best to offer 10 or 20%?

[fredsdebt]

I am in the situation that I have not been in default with any of my creditors but now through not being able to work due to injury I will soon be unable to make the monthly payments. I owe 60k on credit cards/loans and parents have offered a lump sum to me to try and get rid of the debts but I want to try a F&F without my credit ref file getting damaged. Do you think this is possible? Has anyone tried this without being in default or starting reduced payments?

 

 

Hi 'bobduilda' I am in a similar boat - hence starting this thread. There are lots of postings from folk with old credit card agreements and advice on here as to whether it is enforceable or not - which is great but what about those that cant go down that route because their card is 'enforceable' or post April 2007 and therefore see the next best thing is to try and negotiate a F&F rather than paying small amounts for the rest of their lives and never being able to get any form of credit again?

 

To me its not just about which letter template should I use or how much should I offer its about timing and setting the scene first. Eg. if you are answering the credit card companies phone calls and being quite submissive on the phone then surely they will note this and just keep putting on the pressure to pay, pay, pay. But if you are giving as good as you get and standing up to them and when it gets passed on to a DCA start ignoring their calls and quoting likes of 'Administration of Justice Act 1970' for any persistant calling then surely the DCA will start to get the message that they wont get what they want and therefore have to consider a F&F else have to take you to court and the court awarding a few pounds per month?

 

I have seen advice saying tell your Creditors what you have money available/access to and make a prorata offer so each get a fair share? - I think weigh up which one looks more likely to agree (or smallest balance) and try that one first - let them think they are getting 'preferntial' treatment?

 

Any other views?

Edited October 27, 2009 by fredsdebt

[Dotty50]

Hi,

 

I tried 35% with Halifax but no joy. Halifax CCA

 

Still to offer anyone else, Andie's advice is tempting but have read other threads where this is not such a good idea, I think I would be very worried if the cheque was encashed and then they continued to pursue you.

 

I suppose a lot would depend on the CCC, some are very unscrupulous and seem to make up their own rules to suit as they go along.

[andie_303]

Hi Dotty

 

I understand what you are saying however as long as the cheque was a third party and it was clearly a F&F settlement then they could chase all they like - there is nothing they can do - they couldn't take you to court because the case law is clear.

 

I think the very grey area is when you paid personally - this is where they have the ability to continue pursuit if they have deemed to notify you in a resonable amount of time they do not accept the offer.

 

As you say I think it depends on the company involved - both mine were major high street lenders and therefore have slightly more scruples than DCA's (and I emphasise SLIGHTLY)

[bobdauilda]

Hi Dotty

 

I understand what you are saying however as long as the cheque was a third party and it was clearly a F&F settlement then they could chase all they like - there is nothing they can do - they couldn't take you to court because the case law is clear.

 

I think the very grey area is when you paid personally - this is where they have the ability to continue pursuit if they have deemed to notify you in a resonable amount of time they do not accept the offer.

 

As you say I think it depends on the company involved - both mine were major high street lenders and therefore have slightly more scruples than DCA's (and I emphasise SLIGHTLY)

 

Perhaps the size of the sum owed is more relevant in their decision and not the percentage? 35% of a £1000 is only £350 therefore the £650 loss is not worth the hassle of pursuing from the CCC viewpoint. Whereas 35% of £10k is £3500 therefore it is worth pursuing for the £6500 via the courts? Just a thought.....

[Dotty50]

Hi Bobdauilda,

 

Yes, It did occur to me that the amount owing could have an affect.

 

Hi Andie,

 

Not yet had and dealings with any DCA's .....yet, sent a couple away due to accounts in dispute.

 

What sort or amounts were we talking, when you did F & F? I see on your signature that you mention Black Horse and this was a very low amount.

[andie_303]

yes but these are not the ones I refer to - I did a 20% on £3500 and 10% on £4100.

 

I need to update my signature lol

[Dotty50]

Hi Andie,

 

You mention that they were both high street banks, would you be kind enough to clarify which ones?

 

For you to have managed to do this successfully is fantastic, you will be the envy of many on here!

[Bigdebtor]

Just to rub it in then,you could still reclaim all your late charges from them:-D

 

Hi middenmess.

 

Your idea struck a cord. Are you saying that even if you did an F&F then you could STILL go after them for charges (and associated ) interest?

 

I thought the F&F agreement would rule this out - just as it rules out them coming for the balance at a later date?

 

What about if you did an F&F agreement with the DCA - would this make it easier to go after charges with the original credit card company - after all you didn't do the deal with them!

 

Anyone know? - or even better - tried and succeeded?

 

DD

 

BD

[middenmess]

Hi middenmess.

 

Your idea struck a cord. Are you saying that even if you did an F&F then you could STILL go after them for charges (and associated ) interest?

 

I thought the F&F agreement would rule this out - just as it rules out them coming for the balance at a later date?

 

What about if you did an F&F agreement with the DCA - would this make it easier to go after charges with the original credit card company - after all you didn't do the deal with them!

 

Anyone know? - or even better - tried and succeeded?

 

DD

 

BD

 

 

 

That would be untried territory I would imagine,so would be a challenge to say the least.

 

With any account,reclaiming back your charges must be your first priority in my opinion.

 

If you claim for contractual interest as well the sums could make a large dent in your liabilities.

 

Have you got PPI on these accounts as well?

[fredsdebt]

Well, I have been looking at what I can find on this forum and other sources and with my own thoughts on this I am gonna have a go. Will post up here on how I get on.

 

Thanks,

[maroondevo52]

Good luck with that

[bobdauilda]

Well, I have been looking at what I can find on this forum and other sources and with my own thoughts on this I am gonna have a go. Will post up here on how I get on.

 

Thanks,

 

 

Best of luck Fred- I too am doing the same as you and will update accordingly.

PS can anyone clarify the whole how to go about checking the CCA and Subject Access request (really confused about the SAR- does this need to be done at the same time?)

Edited October 29, 2009 by bobdauilda

[bobdauilda]

Hi Dotty

 

I understand what you are saying however as long as the cheque was a third party and it was clearly a F&F settlement then they could chase all they like - there is nothing they can do - they couldn't take you to court because the case law is clear.

 

I think the very grey area is when you paid personally - this is where they have the ability to continue pursuit if they have deemed to notify you in a resonable amount of time they do not accept the offer.

 

As you say I think it depends on the company involved - both mine were major high street lenders and therefore have slightly more scruples than DCA's (and I emphasise SLIGHTLY)

 

Andie sorry to labour the point but did any of them come back to you in disagreement with their acceptance of the payment? ie did you then have to write several letters quoting the case law that you have found in your defence or did they just roll over straightaway?

[andie_303]

Hi bob - don't worry I don't mind the questions.

 

The first one I did they sent 2 letters asking for further payments - this is the one that admitted they had not read the letter before banking the cheque but after I think 2 letters of reply they then closed the account.

 

The second one wrote back on receipt of my cheque confirming acceptance and that the account was closed and my credit file would be updated within 28 days.

[Dotty50]

Hi Andie,

 

Any chance of saying which banks?

 

I think I have seen of some of the many threads that I have read that some of the banks will accept low offers on the condition of 'no publicity' so to speak.

 

It would be encouraging if they were anyone I am trying to deal with.

[andie_303]

Hi Dotty if I said horsey bank and four letter bank would you be able to guess and therefore me not tell you??