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Full annd final settlement cheques have been banked, but offer not accepted?


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Hi.

 

I have sent a cheque (from a friends cheque book not from myself) as an offer of full and final settlement, the company has sent the cheque to a debt agency which now say they are now Administrating" the debt, but that is a side issue, the issue is that in the letter that I sent to them (with the cheque) when I made the offer, I stated very cleary that they do not have permission to bank the cheque unless it is in acceptance of the full and final offer.

 

They have banked the cheque, and sent me a letter demanding payment of the rest of the debt otherwise further action will be taken.

 

Please can someone advise on the leagality of the situation.

 

Thanks

nohappybunny.

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Still awaiting an answer from you. In the meantime I decided to write a basic guide to Full & Finals. I have, on purpose, avoided going too legal - it's just a bit of a 'dummies' guide:

 

http://www.consumeractiongroup.co.uk/forum/entry.php?202-Full-and-final-settlements-A-guide-for-the-rest-of-us

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No worries, it's been on the 'to do' list for ages. I see lots of discussion about them on the forum and much of it goes way, way too technical! I thought I try and take it back to basics :)

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  • 1 month later...

Hi sorry guys....

 

To answer your question Seq, NO I did not write to offer a full and final settlement in advance, BUT there was written on the back of the cheque as well as on the letter saying that if the cheque is banked it is accepted as full and final settlement, and that they are to retun the cheque if not.

 

I have actually not heard back from this company in question, but I also had an identical situation with Vodafone..

I sent a letter to Vodafone, regarding a Vodafone debt of around £345

 

That letter contained a cheque for £192 , a cheque which was written and signed and paid from my girlfriends account.

 

I wrote both on the letter AND on the cheque that this was an offer of full and final settlement, and that they do not have the permission of the cheque writer to bank this cheque unless they are accepting full and final settlement offer, and that they are to return the cheque to me if this was not an acceptable offer.

 

The cheque was banked.

 

I am now getting calls from Capquest stating that they are chasing the rest of the debt, and I owe them the balance of the £130.

 

I have said to them that as far as far as I am concerned the debt is paid, and they seem to think otherwise

 

The really annoying thing is that I am not trying to pull a fast one, I assumed that if they did not accept the offer, then they would refuse and send the cheques back..and then I could make another offer or a payment plan etc.. it is really frustrating, as I am sure if I HAD sent a letter up front they would have accepted it, and now that they have gone ahead and banked the cheque I am just not happy that they would do such a thing.. if they were not happy why not return the cheque.

 

SORRY , for the delay in my response, your advice is much appreciated.

 

thanks

M

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Hi sorry guys....

 

To answer your question Seq, NO I did not write to offer a full and final settlement in advance, BUT there was written on the back of the cheque as well as on the letter saying that if the cheque is banked it is accepted as full and final settlement, and that they are to retun the cheque if not.

 

I have actually not heard back from this company in question, but I also had an identical situation with Vodafone..

I sent a letter to Vodafone, regarding a Vodafone debt of around £345

 

That letter contained a cheque for £192 , a cheque which was written and signed and paid from my girlfriends account.

 

I wrote both on the letter AND on the cheque that this was an offer of full and final settlement, and that they do not have the permission of the cheque writer to bank this cheque unless they are accepting full and final settlement offer, and that they are to return the cheque to me if this was not an acceptable offer.

 

The cheque was banked.

 

I am now getting calls from Capquest stating that they are chasing the rest of the debt, and I owe them the balance of the £130.

 

I have said to them that as far as far as I am concerned the debt is paid, and they seem to think otherwise

 

The really annoying thing is that I am not trying to pull a fast one, I assumed that if they did not accept the offer, then they would refuse and send the cheques back..and then I could make another offer or a payment plan etc.. it is really frustrating, as I am sure if I HAD sent a letter up front they would have accepted it, and now that they have gone ahead and banked the cheque I am just not happy that they would do such a thing.. if they were not happy why not return the cheque.

 

SORRY , for the delay in my response, your advice is much appreciated.

 

thanks

M

Edited by nohappybunny
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Hey there, thanks for the update.

 

I think you'll be hard pressed to argue that your F&F settlement is binding on the creditors. From a contractual standpoint they are not legally binding. I doubt there will be an estoppel argument either as no promise was made to you from the creditor.

 

Have a read through my blog:

 

http://www.consumeractiongroup.co.uk/forum/entry.php?202-Full-and-final-settlements-A-guide-for-the-rest-of-us

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I hope to goodness I'm wrong, but I fear with nothing have been agreed in writing before had that you've just learned an expensive lesson.

 

The only light I can see here is that the cheque, very sensibly, was not written from your own account, so whether there is any way of her getting her money back having made the payment I do not know. Good luck!

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The only light I can see here is that the cheque, very sensibly, was not written from your own account, so whether there is any way of her getting her money back having made the payment I do not know. Good luck!

 

Yup. This is the only possible angle that I can see too, it's still going to be your word against the creditor's.

Edited by 42man
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Hi bunny,

 

As seq knows we have just "won" if that is the right word a F&F at 10% using solicitors to deal with all the correspondence. There are several factors you need to take into account here.

 

1. What was the time frame between the cheque(s) being cashed and you receiving formal notification that the offer had not been accepted? (7 days is considered by the Court of Appeal (Lloyd LJ) to be the limit but I would suggest that 8 weeks is the absolute and they would have a fight on their hands at that point).

2.The principle in law lies with the third party cheque(s) being cashed. The creditor by cashing the cheque(s) makes a LEGALLY BINDING agreement with the third party who wrote them NOT YOU.

3. The covering letter enclosed with the cheques MUST contain all of the terms, conditions and obligations which you (more correctly the third party) wish to impose on the creditor if the cheques are cashed.

4.Do you have proof of the monies lesaving your third party's account with matching entries on your own account?

 

Take a look at a couple of solicitors websites on the 'net:-

 

AddleshawGoddard. Good bit of reading plus the relevant case law references back to Pinnel of 1602 and more importantly Lloyd LJ sitting in the Court of appeal.

 

Gannons London Solicitors. There is a good write up there for CREDITORS and what they can and cannot do and the consequences of their actions.

 

Good luck and Good reading

 

best regards

oilyrag.

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Hi sorry guys....

 

To answer your question Seq, NO I did not write to offer a full and final settlement in advance, BUT there was written on the back of the cheque as well as on the letter saying that if the cheque is banked it is accepted as full and final settlement, and that they are to retun the cheque if not.

 

I have actually not heard back from this company in question, but I also had an identical situation with Vodafone..

I sent a letter to Vodafone, regarding a Vodafone debt of around £345

 

That letter contained a cheque for £192 , a cheque which was written and signed and paid from my girlfriends account.

 

I wrote both on the letter AND on the cheque that this was an offer of full and final settlement, and that they do not have the permission of the cheque writer to bank this cheque unless they are accepting full and final settlement offer, and that they are to return the cheque to me if this was not an acceptable offer.

 

The cheque was banked.

 

I am now getting calls from Capquest stating that they are chasing the rest of the debt, and I owe them the balance of the £130.

 

I have said to them that as far as far as I am concerned the debt is paid, and they seem to think otherwise

 

The really annoying thing is that I am not trying to pull a fast one, I assumed that if they did not accept the offer, then they would refuse and send the cheques back..and then I could make another offer or a payment plan etc.. it is really frustrating, as I am sure if I HAD sent a letter up front they would have accepted it, and now that they have gone ahead and banked the cheque I am just not happy that they would do such a thing.. if they were not happy why not return the cheque.

 

SORRY , for the delay in my response, your advice is much appreciated.

 

thanks

M

 

Hi nohappybunny,

 

I can understand your frustration here and thanks for making me aware of this.

 

From what you've posted here it would seem that while the cheque was banked you received no reply to your letter which is strange.

 

In order for me to take a closer look at your case could you email the details of the account in question across to me by following the steps in our pinned thread here http://www.consumeractiongroup.co.uk/forum/showthread.php?213340-Vodafone-Webteam-for-Customers-With-Problems?

 

Once sent you'll receive an automated reply with a reference number. So I can make sure it reaches us could you update the thread with this and I'll come back to you as soon as I can?

 

Kind regards,

 

Lee

 

Web Relations Team

 

Vodafone UK

 

 

 

 

 

 

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  • 5 weeks later...

I am having the same problem having followed Sequenci's blog advice. Could anyone help me enforce this F and F? My bank are telling me that the third party cheque has no legal standing and does not bind them in anyway. I could do with some help here as my FIL is 2k lighter and Im still being hounded...ouch!! LOL

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I am having the same problem having followed Sequenci's blog advice. Could anyone help me enforce this F and F? My bank are telling me that the third party cheque has no legal standing and does not bind them in anyway. I could do with some help here as my FIL is 2k lighter and Im still being hounded...ouch!! LOL

 

Did you negotiate a full & final settlement prior to making the payment?

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  • 11 months later...

I. Sent a letter to a private doctor for a consultation I attended it said please except this cheque for £50 in full and final payment If this is not except able please return the cheque and I can pay the out standing balance at £5 a month they banked the cheque and said that they want the rest should I go to cab ?

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