Full & Final Settlement Offers - Any Advice???

[Dotty50]

Sounds good news for you Brooce.

 

Have they stated that the shortfall will not be sold to anyone else to collect out? It could happen so make sure you get this in writing as well

[brooooooooooce]

Hi DOT. What they wrote is:

"Thank you for contacting us about the balance outstanding on your Crap One credit card account. We are writing to confirm the settlement arrangement has been agreed.

 

To settle your account a payment of £xxx.xx will need to be received by 2.3.10. Your account will be settled if the payment is received and cleared by this date."

This was in response to my letter which stated:

 

"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've found another post that states you shoudl send your third party cheque with a letter confirming the terms and that if they don't agree to those exact terms they should send the cheque back. Has anyone else had experience of Crap One welching on an agreed f & f after you''ve paid?

[Dotty50]

IMO (in my opinion) Brooce, they are not agreeing to your terms and this is where they leave it open to sell the shortfall. DONT trust them not to!

 

I have read a thread on F & F where they took the payment from a 3rd party despite the person writing that is was to be returned if their terms were not accepted and then wrote to them for the rest! Basically saying 'Up yours'!

 

The problem is they rely on the buzz you get from thinking you have a chance to get one out of the way and hope that you forget to dot the i's and cross the t's if you get my drift.

 

My advice is to hold on to the money until you get EVERYTHING you want in writing from them.

 

Good luck

Edited February 5, 2010 by Dotty50
Spelling

[brooooooooooce]

Other threads are saying that if you send payment via a third party then there is nothing they can do.

[Dotty50]

Well I wouldn't risk it!

 

I have probably read a lot more threads than you Brooce, I just want you to be aware of any possibilities. It could work for you and not be a problem but it MIGHT not and another company could come along in months to come to demand the rest

 

I am probably still subbing to some of the threads, I have to go out now but will have a look when I come back and put them on here for you to take a look.

[brooooooooooce]

Cheers.

[brooooooooooce]

The actual letter reads as follows:

 

"Date: 26/1/2010

 

Account Number: 4775 XXXX XXXX XXXX

Balance: £X,XXX.XX

 

Dear Broooooooooooooooooooooooooooooce

 

"Thank you for contacting us about the balance outstanding on your Crap One credit card account. We are writing to confirm the settlement arrangement has been agreed.

 

To settle your account a payment of £xxx.xx will need to be received by 2.3.10. Your account will be settled if the payment is received and cleared by this date.

We have provided details below on how this settlement will appear at the credit reference agencies once the account has been settled:

* If you have paid the full outstanding balance this will show as satisfied

* If you have paid less than your full outstanding balance this will show as satisfied with an additional flag of 'partial settlement'.

 

This settlement offer is available until 2.3.2010. If the settlement payment is not received by this date your account will return to its previous status. Payments should continue to be made in accordance with any agreed payment plan.

 

Any questions please call 0800 952 4914."

 

I guess to be sure I'll write to them (again!!!!!!!).

[brooooooooooce]

Hi Dotty.

 

Just spoke Crap 1, 'Specialist Support Unit' - the girl was very reassuring says it is absolutely an f & f - they won't pass it on to anyone.

 

However I've got until 2.3.10 to pay, so I'm gonna send a letter to them asking for them to confirm that is it and that they won't pass it one to a DCA.

[Dotty50]

Hi Brooce,

 

As promised here is one thread, obviously have a read of all of it but andy_303 has had some success, see from post 21 but more importantly see Bobs comments on post 78.

 

http://www.consumeractiongroup.co.uk/forum/getting-out-debt/223907-final-settlement-offers-advice.html

[brooooooooooce]

Hi Dot. Thanks for your reply. I've read the thread and don't think those circumstances are the same as mine. What andy303 seems to be suggesting is that he has sent cheques to creditors marked 'full & final, only bank if you accept in f & f settlement' without actually having negotiated anything with the creditor in first place. He does quote case law but it does seem to me to be a high risk strategy.

 

I've already written to Crap1 asking for them to confirm what they told me last night.

[Bigdebtor]

Any one had any joy negotiating an F & F with the Halifax? Just had a letter from them saying categorically they don't enter into F & F's.

 

They lie - but they don't offer good F&F's. I was offered 75% by HBOS - but before I reclaimed the default charges - which reduced the balance by much more! Now repaying the remaining £5k balance at £30 per month (interest frozen). I have also just realised via SAR that they changed my card no at some time and the CCA I have is for a DIFFERENT card no - thinking about my next move on this.

 

BD

[Bigdebtor]

Hi Jimbo.

 

I agree - it's taken a little while for me to conclude that but I know that I now want to settle as many CC's as I can on f & f's and if that results in a screwed credit rating - then so be it. I am asking creditors to agree to mark my credit file as satisfied but to be honest I don't trust them and wouldn't be at all surprised if they had some covert system of alerting other lenders to my waywardness!

 

Brooooooooooce

 

If Cr*p One is offerring 15% F&F then they probably feel the agreement is not enforceable - but may be worth 15% for your peace of mind. I agree that what the CRA's say is of no consequence (unless you want to re-mortgae soon!).

 

If so, look at the National Debt Line template and DO SEND A THIRD PARTY CHEQUE with accompanying letter quoting cheque number etc. stating it is in F&F and annotating the chque on the back of it - there is much case law to protect you once they bank it.

 

If you don't want to (or can't) pay 15% then do the £1 cca requests and the £10 SAR with all OC's and see what comes out.

 

Reclaim credit card default charges and associated contractual interest (compounded monthly at THEIR monthly rates) to reduce the balance BEFORE negotiating F&F. (I wish I had known of CAG and done this before doing the F&F deals I did in 2007!).

 

BD

Edited February 4, 2010 by Bigdebtor
typos

[spamheed]

Be aware that a partial settlement is just that, settling part of the debt, leaving a balance to be collected by them or whoever they see fit to sell the debt on to. From the wording of the letter you have received I would be inclined to agree that they are trying to pull a fast one

 

I would always insist on settled or paid in full or "satisfied" being displayed on your file and a letter from them stating clearly that the amount to be paid is recognised as being in full and final settlement (the letter you have received doesn't state this at all) and that the remaining balance will not be transferred or sold to either their agents nor to any other company under any circumstances

 

It may also be worth requesting that they indemnify you against any further action against this account. I doubt very much that they will do this, but under the letter they have sent you, they have promised nothing and any cheque you send them will be cashed without any commitment from them to write off the remaining balance and as such you wouldn't have any recourse at all

 

If they refuse to do as you request then you need to read into it what you will

[brooooooooooce]

Cheers for your reply Spam.

 

I've written to them today asking for confirmation of what they said on the phone last night - namely that once I've paid the account will be closed, marked on my credit file as satisfied and that Crap 1 or any other company won't pursue me for any other monies.

 

That, together with sending the cheque via a 3rd party with all the usual 'f & f' blurb should surely be enough? I have already sent an F & f letter with all that blurb already in it - which prompted Crap 1 to contact me.

 

I note what you say about 'partial settlement' but their letter does say my account will be marked as satisfied with an additional marker of 'partial settlement' - because isn't that what I'm offering?

 

Has anyone else had experience of a letter like I've had from Crap 1 and them then welshing on it?

[spamheed]

you need them to clearly state in writing that they are accepting your money as full and final settlement - anything else is just waffle and unless they are prepared to use that exact phrase in writing, then it would leave you open to further enforcement action.

 

And this forum is filled with examples of people who have entered into such agreements in good faith, only to have another lowlife pop up to pursue the remaining balance.

 

Dont believe that this is restricted to any timescale. if they don't want to play fair, leave the money in the bank and try again at a later date

[andrew1]

Actually Brooo ...you can see the advice here is consistent in a number of areas and every bit of it coming from peoples experience so take it all on board and thank them for it as it is guiding you through the maze.

 

a) Don't trust them and you are wise to get whatever satisfies you in writing. Never hurts, keep all these letters stuffed in your loft for when some chancer idiot from McKenzie Hall picks it up once it's statute barred or something.

 

b) Only you know what your situation with regards to getting further credit will be, as someone pointed out, if you're going to be looking for a mortgage some time soon, it may affect your application.

 

c) confirm everything and confirm it again..as you are doing.

 

I have negotiated a settlement with Cap 1 for a friend and they put the 'partial settlement' on the credit file, but I also had it confirmed they would not come chasing this again EVER...this person is nearly 70 and has no interest in obtaining credit again so there is no worry. Your's may be different, but there's only so much you can demand when in all fairness what they put is exactly what has happened. IF you get satisfied on your credit file think of it as a bonus - go for it, but a bonus.

 

You are doing exactly as I said, you're doing okay and these other good people and ensuring you seal the deals as their experience dictates. CAG? ...what a place! Tick - tock, you're getting there.

[brooooooooooce]

Ey up Andy lad!

 

Thanks for that. Some points you make are quite pertinent, they hit the spot so to speak. Cheers for your post. Yours and everyone elses' are very much appreciated!! Been along time since I was a virgin, but that's what I am when it comes to all this creditor s**t!

[Ron 2015]

Hi Brooce

 

Good advice here , as everyones says you must get a letter from Crap1 saying full and final settlement and a commitment that the debt will not be persued in the future.

 

If they won't give you this then they are just messing with you.

 

If they dont intend to persue the debt then why can't they put down on paper. so IF IT DOESNT SAY FULL AND FINAL, THEN IT ISNT.

 

You could pay them the settlement figure then get another DCA chasing you in the future.

 

Cheers Ron

 

Well done with the 15% by the way , if you can get them to confirm it properly then you have done well.

[Dotty50]

Hi Brooce,

 

How are things going?

 

Did you get confirmation regarding any shortfall being passed on from Cap1 for your F & F?

 

I just did a recap on your thread, I have had a call from Fredericksons today, so guess they are to do with Cap1!

[brooooooooooce]

Hi, sorry for delay in replying - I'm trying to limit the amount of time I spend on this - hours and hours reading CAG threads was starting to cause me some serious issues. So I'm managing things in a different way by only dealing with stuff and using CAG once a week (my will divorce me if I don't!!).

 

Got another letter from Crap1 which reads:

 

"I am glad that you are happy with the action that we have taken with your account and we wish you all the best in the future.

 

I can confirm that on receipt of your agreed settlement payment of £xxx.xx we will close your account and no further payments will be due.

 

We will update the CRA to show the debt has been settled. After your payment of £xxx.xx is showing on your account an amount of £xxxx.xx which is the balance that will be remaining will show as a write off on your credit file."

 

I have again spoken to someone at Crap1 (a very nice English lady) who has explained that Crap1 will only mark my credit file as settled in full if that is what has actually happened. Clearly I haven't settled my account in full. She assures me that once I have paid them then that will be it - no action from Crap1 or any DCA. She also says that I am being dealt with by a specialist dept. in Crap 1 because of my health issues and the medical report I disclosed to them.

 

My wife wants to move this forward and settle it and I think I do as well. I'm going to send them a 3rd party cheque with all the blurb about them only cashing it if they accept it in final settlement etc.

 

I suspect there will be some who say I need more from Crap1 but the content of my letters to them is absolutely clear and unequivocal. They acknowledge receiving them and make reference to them in their letters.

 

Thanks for everyone's help and comments.

[andrew1]

Well done Broooo. I doubt there'll be any further issues on this and life will move on. Peace of mind is paramount and relations wife your Mrs even more so...My OH threatened me with all kinds of punishment for being on the forum too long...its kinda catching because the whole forum opens up so many possibilities to right wrongs of the past.. Go and enjoy life and well done, it inspires others to know you have a result, that's all that matters..

 

Good luck..

[brooooooooooce]

Hi Andrew. Thanks so much for that mate. I've just been away for a few days with my brother and family. On his back he has tatooed the words 'Refuse & Resist' - thinks of himself as a bit of an anarchist. Told him what I was up to with the CC stuff and he calls me one (an anarchist that is!). Initially I thought 'oh yeh I'm going against the system' - ANARCHY IN THE UK!!! (and all that) then I thought no its not me that wants anarchy its the banks and credit card companies. Its them that seeks to ignore the rule of law for their own ends not me. You are right about CAG and the cans of worms it can open.

 

Trouble now is I can't watch an advert on TV for a bank or financial company without wanting to pick something up and throw it at the TV!! 'Lloyds TSB - it's for the journey' - what a load of old b*****ks and that latest ad for the Halifax what a waste of tax payers money!!

[Bigdebtor]

Well done Brooooooooooooooooooooooce - looks like an OK result from the nice lady!

 

BD

[Dotty50]

Well done Brooooooooce,

 

If you are happy with the result that's what matters.

 

Might be thread to adjust to 'WON', ask one of the site team, once it has been completed

[natalie]

I am about to ask Halifax for a f & f of %% so I will let you know how I get on.

 

I do hold all the cards though... unenforcable cca, account terminated with possibly the worst DN ever (remedy date is BEFORE date on letter lol)

 

I will also be going to Cap 1 so this has given me a little hope.