Some advice re: full and final settlement

[hunka]

Hi guys, thanks for your help with my last thread.

 

 

So, in my error I started to reclaim my credit card charges back through one of those PPi solicitors - I've had replys from all three - Egg: not much at all, Barclay's: £900 and RBS: £600 ish.

 

I do have to find a third of the above to pay the solicitors, but there's another quite substantial PPI claim in the works with them and I'll make arrangements to pay them if they won't deferr the amount to that comes through.

 

 

So my RBS account is currently with Allied International Credit. Long story short, they basically lied to me and made me pay huge amounts initially, but thanks to CAG, I've now got that down to something manageable.

 

So I'm wondering, I owe roughly £1350 on the RBS account - I was wondering if between £200 I could borrow from my Father along with the £600 ish that's getting credited to the account I could try and get a full and final settlement with that amount?

 

Do you think A.I.C would agree to that?

 

Thanks guys for your help.

[247orbital]

Start low 10%, most of these debts are purchased for next to nothing as they are normally block purchased. F&F settlements have to be dealt with with caution as DCA's will often just sell the debt on for another DCA to have bite of the cherry. Everything needs to be in writing (something the DCA's are often reluctant to do) other CAG'ers have also used solicitors to draw up F&F settlements.

There other posters on here who have lots of experience with F&F's so I'm sure they will be along to advise you.

[hunka]

Start low 10%, most of these debts are purchased for next to nothing as they are normally block purchased. F&F settlements have to be dealt with with caution as DCA's will often just sell the debt on for another DCA to have bite of the cherry. Everything needs to be in writing (something the DCA's are often reluctant to do) other CAG'ers have also used solicitors to draw up F&F settlements.

There other posters on here who have lots of experience with F&F's so I'm sure they will be along to advise you.

 

thanks for your reply, form what i have gathered, AIC is acting on behalf of RBS - RBS still 'owns' the account, but AIC is collecting it on their behalf.

 

Does that make a difference?

[FORMISTER]

It's ashame you used a company to reclaim charges and PPI when it's something you can easily do yourself, but whats done is done. Without reading your other thread about these debts, make sure that you take off any charges that the DCA has added which they are not entitled to before calculating your F+F. Often DCA's offer you a F+F which the discount is mostly made up of charges that they were not entitled to.

[hunka]

It's ashame you used a company to reclaim charges and PPI when it's something you can easily do yourself, but whats done is done. Without reading your other thread about these debts, make sure that you take off any charges that the DCA has added which they are not entitled to before calculating your F+F. Often DCA's offer you a F+F which the discount is mostly made up of charges that they were not entitled to.

 

I know, in retrospect, I should have done it myself.

 

There have been no additional charges added by AIC, that much I'm pretty sure of. What kind of wording should I use?

[FORMISTER]

Follow this link and use letter J as a template for a full and final settlement http://www.consumeractiongroup.co.uk/forum/content.php?590-Creditors-and-DCAs-Letter-Templates-Budget-Planner

[hunka]

Follow this link and use letter J as a template for a full and final settlement

 

thanks mate, since it's £600 from reclaimed charges that'll be added to my balance will I just reword it to reflect this? something like:

 

"We can confirm that we are unable to offer to pay the money which we owe in full. However, I can raise £750 and I want to offer this as an ex−gratia payment in full and final settlement of the account this includes £150 payment from myself and £600 being credited from RBS themselves for unfair charges. 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 we will be released for any liability."

 

Does that sound alright?

[FORMISTER]

Are RBS paying the money to you or crediting the account?

[hunka]

Are RBS paying the money to you or crediting the account?

 

crediting the account unfortunately

[FORMISTER]

Is the account still owned by RBS or was it sold?

[hunka]

Is the account still owned by RBS or was it sold?

 

by all accounts it's still owned by RBS, but AIS is collecting on their behalf.

[FORMISTER]

Ok just checking. They have the right to credit your account with the money owed if they still own it, so in their eyes all you will be offering them is £150 towards the balance which will be £750. I can't see them accepting but they may come back with a counter offer, so play it low to start with.

[brokebutnotbeatn]

I claimed back PPI from Barclays - a genuine case of being mis sold. Although they will try and credit the account I was advised that actually you can insist on them sending you a cheque. I did this and I got the cheque. Took a while but if PPI was missold they cannot use the refund to offset against the monies owed. Makes sense really as the money was never theirs in the first place?

[FORMISTER]

Oh right, i stand corrected then. Thanks for your comment , i presumed they off set against your debt. Should know better than to presume, PPI claims not really my field of expertese

[brokebutnotbeatn]

I think its just a case of being really firm and insisting they send you the cheque. They will say it is difficult etc. It it probably worth exploring CAG as different institutions will try different tactics I imagine!