Full & Final Settlement offer advice on how to clear asap

[horsemad1]

I tried the F&F with egg (sent from a third party) but they returned it. The account is in the hands of a dca acting on behalf of egg. Can I try again with a F&F but this time send it to the DCA who’s acting on behalf of egg? They did state in their letter that if we make contact within 14 days they can offer a substantial discount for a mutually accepted one off payment.

 

Hi Panther, thats the point they are acting on behalf of Egg, so if they accept, then EGG does also. FYI, EGG were one of the creditors that returned my cheque, so they do understand the terms of the settlement letter. However, many of the DCA's don't. So Im waiting for it to be sold on again to another DCA and I will send them the F&F.... You can but try if this is the way you want to go.

[davidoneman]

would i be able to use a cheque from my wife , or does it have to be from family ? , cheers dave

[panther12]

Hi Panther, thats the point they are acting on behalf of Egg, so if they accept, then EGG does also. FYI, EGG were one of the creditors that returned my cheque, so they do understand the terms of the settlement letter. However, many of the DCA's don't. So Im waiting for it to be sold on again to another DCA and I will send them the F&F.... You can but try if this is the way you want to go.

 

Thanks horsemaid, I'm going to give this a try. I'm the third party dealing with this on behalf of a friend so the cheque will come from me. There's two Egg accounts that have been passed to ARC & Trevor Munn - a loan & a credit card. I'm going to fight the CC as the agreement is similar to the one posted in the egg forum but with the loan agreement I think I'd be on shakier ground so will try the F&F route with that one.

[BRIGHTHOPE]

I've read a lot on here about third party cheques being sent to the creditors to settle a debt. Would a cheque issued by a bank work in the same way, or does it have to come from an individual?

[johnnymitch]

Hi brighthope ,

I would imagine a cheque issued by a bank would carry more security than one issued by an individual .......after all, I shouldn't think it's going to bounce ........

[horsemad1]

would i be able to use a cheque from my wife , or does it have to be from family ? , cheers dave

 

Yes but only if its from her account, personally I would always use someones who is completely sepearate from yourselves.

[horsemad1]

I've read a lot on here about third party cheques being sent to the creditors to settle a debt. Would a cheque issued by a bank work in the same way, or does it have to come from an individual?

 

Hi Brighthope,

A) PART-PAYMENT OF THE DEBT BY A THIRD PARTY

 

A promise to accept a smaller sum in full satisfaction will be binding on a creditor where the part-payment is made by a third party on condition that the debtor is released from the obligation to pay the full amount. See:

Hirachand Punamchand v Temple [1911] 2 KB 330 - A father paid a smaller sum to a money lender to pay his son's debts, which the money lender accepted in full settlement. Later the money lender sued for the balance. It was held that the part-payment was valid consideration, and that to allow the moneylender's claim would be a fraud on the father.

 

Hope that helps.

[panther12]

Well they received the cheque yesterday but sent it straight back to us today. I offered £250 but they said the minimum they can accept is just over £900 (they havn't budged from the 40% off they offered previously). Oh well, I've gone as far as I'm prepared with this so will just leave the next move to them. No doubt a few more letters from Trev Munn before it gets passed to aktiv kapital.

[The Mould]

Well they received the cheque yesterday but sent it straight back to us today. I offered £250 but they said the minimum they can accept is just over £900 (they havn't budged from the 40% off they offered previously). Oh well, I've gone as far as I'm prepared with this so will just leave the next move to them. No doubt a few more letters from Trev Munn before it gets passed to aktiv kapital.

 

OK panther,

 

Now send in a counter offer to their £900.

 

What was the precise wording of your Full and Final offer?

 

Kind Regards

 

The Mould

[panther12]

Hi Mould, below is what was sent to ARC who are acting on behalf of egg. I previously tried a F&F direct to egg themselves but they too declined and returned the cheque.

------------------------------------

 

To whom it may concern,

 

RE: FULL AND FINAL SETTLEMENT PAYMENT

WITHOUT ANY ADMISSION OF LIABILITY

 

Despite recent discussion and correspondence, you and I appear to be deadlocked in this dispute regarding the above account.

 

In sending this communication to you, which is my further but absolute final attempt to obtain an amicable, mutually agreeable, satisfactory and honourable closure to the entirety of all matters that relate between you and me, I respectfully invite you to kindly afford your consideration to my proposal in order to secure that said closure for all concerned.

 

Attached to this letter is a cheque payment for the sum of £250.00 that is offered to you in full and final settlement of the account without any admission of liability to the amount claimed.

 

The said enclosed cheque payment is offered only in full and final payment to the account, with the further conditions that should you accept the said cheque payment, then you agree that no further monies are required to the account and that the balance of the account will be put to zero and the account will be closed. Furthermore, if you are willing to accept this settlement payment in relation to all and any matters regarding our relationship, then I respectfully ask you to make an entry on my credit files showing the termination/cancellation of the account as settled and balance £0.

 

If you are unable or unwilling to accept the settlement cheque attached to this letter as full and final settlement by the terms the said cheque payment is tendered by, then I respectfully ask you to return the said cheque settlement payment to me within seven (7) days from receipt.

 

I would like to draw your attention to the fact that my mind is fully furnished with the knowledge of consumer credit law including my legal rights regarding improperly executed credit agreements. The credit agreement to this account is heavily flawed and certainly does not comply with legislation contained within the Consumer Credit Act 1974; therefore the credit agreement to this account is in a permanent state of being unenforceable at law.

 

Cont...

I respectfully ask of you to absorb that indisputable fact while you give your consideration to my Full and Final Settlement payment proposal. This offer will not be repeated after the end of this month (July 2010) as the funds that have been made available to make this offer to you will no longer be available from that point onwards.

 

I must advise that should you find this offer of settlement to the account unacceptable, it will be my intention to vigorously defend any action should you and/or your client wish to pursue this matter further.

 

I would like to express my gratitude to you in advance for your kind consideration and urgent attention to this communication. I am sure you will agree that this would seem to be the best solution in ensuring a satisfactory resolution to the dispute between us.

 

I advise we both adopt maturity in our approach and would appreciate your due diligence in this matter and look forward to hearing from you in due course.

 

Yours faithfully

[mj4j2000]

Hi panther12, would mind to ask you what the dispute amount was? Thank you. Regards mac

[The Mould]

Hi Mould, below is what was sent to ARC who are acting on behalf of egg. I previously tried a F&F direct to egg themselves but they too declined and returned the cheque.

------------------------------------

 

To whom it may concern, (find out the addressee name)

 

RE: FULL AND FINAL SETTLEMENT PAYMENT

(leave this part out of the title - without any admission of liability)

 

Despite recent discussion and correspondence, you and I appear to be deadlocked in this dispute regarding the above account.

(leave out the above paragraph)

In sending this communication to you, which is my further but absolute final attempt to obtain an amicable, mutually agreeable, satisfactory and honourable closure to the entirety of all matters that relate between you and me, I respectfully invite you to kindly afford your consideration to my proposal in order to secure that said closure for all concerned.

(leave out the above paragraph)

Attached to this letter is a cheque payment for the sum of £250.00 that is offered to you in full and final settlement of the account without any admission of liability to the amount claimed.

 

The said enclosed cheque payment is offered only in full and final payment to the account, with the further conditions that should you accept the said cheque payment, then you agree that no further monies are required to the account and that the balance of the account will be put to zero and the account will be closed. Furthermore, if you are willing to accept this settlement payment in relation to all and any matters regarding our relationship, then I respectfully ask you to make an entry on my credit files showing the termination/cancellation of the account as settled and balance £0.

 

If you are unable or unwilling to accept the settlement cheque attached to this letter as full and final settlement by the terms the said cheque payment is tendered by, then I respectfully ask you to return the said cheque settlement payment to me within seven (7) days from receipt.

(send the above 3 paragraphs as your counter-offer)

I would like to draw your attention to the fact that my mind is fully furnished with the knowledge of consumer credit law including my legal rights regarding improperly executed credit agreements. The credit agreement to this account is heavily flawed and certainly does not comply with legislation contained within the Consumer Credit Act 1974; therefore the credit agreement to this account is in a permanent state of being unenforceable at law.

 

Cont...

I respectfully ask of you to absorb that indisputable fact while you give your consideration to my Full and Final Settlement payment proposal. This offer will not be repeated after the end of this month (July 2010) as the funds that have been made available to make this offer to you will no longer be available from that point onwards.

 

I must advise that should you find this offer of settlement to the account unacceptable, it will be my intention to vigorously defend any action should you and/or your client wish to pursue this matter further.

 

I would like to express my gratitude to you in advance for your kind consideration and urgent attention to this communication. I am sure you will agree that this would seem to be the best solution in ensuring a satisfactory resolution to the dispute between us.

 

I advise we both adopt maturity in our approach and would appreciate your due diligence in this matter and look forward to hearing from you in due course.

(leave out the above 5 paragraphs)

Yours faithfully

 

OK panther

Send in your counter-offer with the third party cheque enclosed.

Kind Regards

The Mould

[pinnate]

Sorry this isn't so much a reply as a question. I've managed to settle 2 credit cards (10-25%) but the other one wants proof that I settled at these low percentages and has asked for my correspondance. I'm reluctant to share anything with anyone (data protection - over the last three years I've had two DCAs trying to collect on cards I didn't have, and am plagued by phone calls from debt management companies). However, I'm wondering if I should share the info in the hope of getting this settled quickly.

 

Overall, I'd endorse the replies here. I've spent a miserable four years being hounded by DCAs. I've used the phone harrassment letters (templates here)to get them off my back. I've certainly used asking for CCA agreements to get them to back off from taking me to court, although they did produce them in the end; and I've certainly noted the low levels that DCAs ( as opposed to the original card holder or their in-house collectors) will accept.

It means a constant stream of letters challenging them about everything but in the end at least I've got 2 of them settled.

[johnnymitch]

Hi pinnate ,

 

I think you're right to be reluctant ot let them have this information ...IMHO.. it's no business of theirs what other companies settled for , all they have to do is make you an offer ... which you accept or reject as you wish .....

 

I would also think that other companies could be unhappy about you giving that kind of information to their competitors (if that's what they are ....)

 

PS ...if you want further advice pinnate could you please open your own thread , that way you'll get answers which apply only to you ..it saves confusion ....... Thanks !

[TheCherry0121]

I need a draft letter to send in with my agreed f&f payment regarding T&C's if anyone can help.

 

Also if i got my F&F down to 1500 with a DCA would i be wise to go to the original creditior and offer slightly less as they wont have to pay any commision then ?

 

Any help greatfully recieved

 

Thank you

[Dotty50]

I need a draft letter to send in with my agreed f&f payment regarding T&C's if anyone can help.

 

Also if i got my F&F down to 1500 with a DCA would i be wise to go to the original creditior and offer slightly less as they wont have to pay any commision then ?

 

Any help greatfully recieved

 

Thank you

 

£1500 from what?

 

Cherry, have a search on posts by The Mould, he does some good F & F letters.

 

If the debt has been sold on to a DCA then they will have paid a really low amount for your debt so I wouldn't be offering too much!

[Dotty50]

Sorry this isn't so much a reply as a question. I've managed to settle 2 credit cards (10-25%) but the other one wants proof that I settled at these low percentages and has asked for my correspondance. I'm reluctant to share anything with anyone (data protection - over the last three years I've had two DCAs trying to collect on cards I didn't have, and am plagued by phone calls from debt management companies). However, I'm wondering if I should share the info in the hope of getting this settled quickly.

 

Overall, I'd endorse the replies here. I've spent a miserable four years being hounded by DCAs. I've used the phone harrassment letters (templates here)to get them off my back. I've certainly used asking for CCA agreements to get them to back off from taking me to court, although they did produce them in the end; and I've certainly noted the low levels that DCAs ( as opposed to the original card holder or their in-house collectors) will accept.

It means a constant stream of letters challenging them about everything but in the end at least I've got 2 of them settled.

 

Hi Pinnate,

 

Congrats on getting these 2 low F & F's.

 

Could you share with us Caggers, which creditors or DCA's they were with?

 

Very useful info for others in the same position.

[TheCherry0121]

THats the problem the dca dosnt own the debt and it was for a £2000 loan at 59% apr back in 2007 of which iv never made a payment (due to stupidness) The amount with interst is 3993 according to the DCA but iv just called the original creditor to get a settlement figure and they want 9k lmfao

 

I know there is missold PPI and unlawfull charges on the debt but that only equates to about £1200 so if i take that from the 3993 i still think im doing OK at the current £1500 settlement iv tried to screw it down more but am getting nowhere and iv not had much luck on here with help on my CCA

[johnnymitch]

I need a draft letter to send in with my agreed f&f payment regarding T&C's if anyone can help.

 

Also if i got my F&F down to 1500 with a DCA would i be wise to go to the original creditior and offer slightly less as they wont have to pay any commision then ?

 

Any help greatfully recieved

 

Thank you

 

The mould's letter on F&F is just a few above you on this thread Cherry ......#212 . adapt it to suit your circumstances .....

[The Mould]

I need a draft letter to send in with my agreed f&f payment regarding T&C's if anyone can help.

 

Also if i got my F&F down to 1500 with a DCA would i be wise to go to the original creditior and offer slightly less as they wont have to pay any commision then ?

 

Any help greatfully recieved

 

Thank you

 

OK TheCherry

 

Do you have this agreed Full and Final in writing from the DCA? If yes, can you please post it up.

 

Kind Regards

 

The Mould

[TheCherry0121]

I did read that but was making sure that it wasnt case specific

 

If im paying a DCA a settlement and they have said they are collecting on behalf of do i need any sort of proof before i pay up ? They did provide my CCA albeit late, so im assuming they arnt con artists

[TheCherry0121]

I have the first one for 1900 but i demanded the amended one for £1500 before i paid a penny. ill upload it now as iv been asured the amended one will be the same but with £1500 instead.

 

Appreciate your time

[TheCherry0121]

Edited July 21, 2010 by TheCherry0121

[TheCherry0121]

IT will be the same as this but for 1500

[Dotty50]

You should also have written confirmation that they will not sell the remainder to another DCA!