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Full and Final Settlement Advise

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I have recently moved to China to study and ultimately teach English. I have no income and have large unsecured debt in the UK. I have been paying reduced affordable payments to all of my creditors for 3 years (all interest on accounts has stopped and in many cases I believe the debts have been sold). My debts are as follows :


Original Debtor Collection Company Value of Debt Account opened Default Date

Egg Credit card CapQuest £3.2k May 03 Nov 06

HFC CapQuest £960 Aug 05 Feb 07

Egg Loan CapQuest £11.5k Mar 06 Dec 06

Virgin credit card Marlin/Arrow £3.5k Nov 02 Aug 07

Capital One None £732 Feb 04 Sep 08

Cahoot Loan Santander £4.2k Jun 03 Jun 07

Alliance Leicester Santander £6k Nov 03 Feb 07

IF IF Halifax £3.5k Oct 05 Mar 08


I also had 2 other debts which I settled last year at 60% and 50% however they also originally defaulted. I have the letter confirmation that both were payment for full and final settlement but I am a little worried about how it is reflected on my credit files (Experian and Equifax). Status on both is still "Default" with the balance still showing, minus the amount I paid. The history stops at the date I paid the settlement. Is this correct?


Anyway back to the main reason for the thread. Now that I have little to no income and now living in China, how should I approach my outstanding debts (total £35k). My father has offered to lend me money to try and achieve a pro rata type settlement agreement with all my creditors.


What would be reasonable considering my circumstances? Any suggestions on how to approach this would be greatly appreciated.


All of the debts are unsecured and I have no assets in the UK.


I am still very embarrassed by allowing my finances to get so out of control, however I have been in control since 2007, once I had negotiated payment plans for all my debts.


I have read a number of threads on this site, following successful stories where people have proven agreements are unenforceable, reclaimed interest and significantly reduced the amount they need to pay. I do however feel I have a morale obligation to pay....


Any help or advise would be greatly appreciated.





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Hi croll


Welcome to CAG


I think the first thing to do is to find out if you've been mis - sold PPI on any of your accounts? Also have you had Penalty Charges applied to any of your Credit Card

accounts? You can also ask for copy agreements to see if they are Unenforceable. If they are unenforceable then you can negoitate with the creditor towards a lower settlement. For information on your accounts you can send a SAR Request. Depending on what they send you you can send a CCA Request. All templates and spreadsheets can be found in the library.


I would deal with all the debts first then tackle the Credit File.

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Good advice above. If you are considering offering pro rata payments to your creditors, then you need to draw up an accurate Income Expenditure sheet that shows the pro rata payments are fair and equitable. I can provide you with one of these that works payments out automatically if there isn't one on here. Next step is to find out exactly where you stand and who owns what debt. Do not take their word for it as they lie! Send a prove it letter and ask for the DOA in writing for any that you're unsure about. If they've been passed on from the OC I'd send a Prove It letter. Once you've taken those steps with what was suggested above, we'll take it from there. One step at a time eh!

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