Offering full and final settlements, creditors playing hard ball...

[hacompany]

Hello Consumer action group

 

Can I start by saying how helpful I have found this forum so far, I think it's amazing that so many people are coming together to offer support to each other in these difficult times.

 

In the interest of keeping a long story short - I was made redundant two years ago and have been unable to get another job that will pay me enough to meet my mortgage payments. I am also in negative equity mortgage arrears.

 

I'm in a real mess.

 

As I see it I have only two options - Go bankrupt or offer to final settlements to my creditors and start again.

 

I have four creditors excluding my mortgage, electric gas, council tax etc

 

Lowell Portfolio

Bank of Ireland (Post office)

Incasso (RBS Loan)

Regal (RBS Card)

 

Fortunately I have a family member who has kindly offered a small lump some to try to clear these,on the basis that it will give me a fresh start etc.

 

I have sent letters explaining my situation and offering 'pro rata' amounts to each of my creditors with the following terms

a) The Default Notice will be removed

b) The Status of the account will change from “Defaulted” to “Settled”

c) The Current Balance will appear as £0.00

d) The Default / Delinquent Balance will be set to £0.00

e) There will be no date in the “Defaulted Date” field (as it will be removed)

f) There will be no date in the “Date Last Delinquent” field on the report

g) This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit

 

No one is playing ball, they either won't negotiate or they won't negotiate etc. Can anybody advise me whether these terms are reasonable/possible?

[The Mould]

Hello Consumer action group

 

Can I start by saying how helpful I have found this forum so far, I think it's amazing that so many people are coming together to offer support to each other in these difficult times.

 

In the interest of keeping a long story short - I was made redundant two years ago and have been unable to get another job that will pay me enough to meet my mortgage payments. I am also in negative equity mortgage arrears.

 

I'm in a real mess.

 

As I see it I have only two options - Go bankrupt or offer to final settlements to my creditors and start again.

 

I have four creditors excluding my mortgage, electric gas, council tax etc

 

Lowell Portfolio

Bank of Ireland (Post office)

Incasso (RBS Loan)

Regal (RBS Card)

 

Fortunately I have a family member who has kindly offered a small lump some to try to clear these,on the basis that it will give me a fresh start etc.

 

I have sent letters explaining my situation and offering 'pro rata' amounts to each of my creditors with the following terms

a) The Default Notice will be removed

b) The Status of the account will change from “Defaulted” to “Settled”

c) The Current Balance will appear as £0.00

d) The Default / Delinquent Balance will be set to £0.00

e) There will be no date in the “Defaulted Date” field (as it will be removed)

f) There will be no date in the “Date Last Delinquent” field on the report

g) This will apply to all 3 Credit Reference Agencies, namely Experian, Equifax & Call Credit

 

No one is playing ball, they either won't negotiate or they won't negotiate etc. Can anybody advise me whether these terms are reasonable/possible?

 

Good evening hacompany

 

Do you understand that there is no obligation imposed upon a creditor to give his consent to a Full and Final Settlement Agreement?

 

You may wish to have the matter agreed, like yesterday, however, legally binding compromise agreements can take time and parties to such a contract must be in agreement to the [same] thing.

 

How much do you owe to each of said creditors and what amount are you offering to settle each account on the condition that the creditor accepts your terms?

 

Kind regards

 

The Mould

[hacompany]

Thanks for your response!

 

I realise that they don't have to negotiate, and certainly wasn't expecting them to make a decision straight away.

 

I owe the following amounts:

 

Lowell Portfolio - £10,000

Bank of Ireland (Post office) - £4,500

Incasso (RBS Loan) - £18,000

Regal (RBS Card) - £1,200

 

I have offered 40%

 

Do you think they will agree to remove the defaults?

[hacompany]

Any one?

[baz1986]

Hi hacompany i have just been going through some F+F with 2 creditors, Now when i sent mine to all my creditors i didn't mention anything about marking my file as settled or about removing the defaults etc etc, The way i looked at it was to get them to agree to a partial settlement and once i have it in writing i can then start negotiating with them regarding marking my file as settled etc etc, they have given me 60 days to negotiate, But i have 5 creditors and 3 have flatly refused.

 

I think you shouldnt offer no more than the 40% you have already offered though!!

 

Best of luck

[Tingy]

I would agree that 40% is plenty. I think you need to get yourself into a situation where they can see that they either accept this or will get nothing as you will go bankrupt, or stop paying them completely and wait for one of them to pay to make you bankrupt. Perhaps a letter spelling this out to them in black and white may not go amiss.