Full & Final Settlement - Safe Payments

[phoenix11]

Hi

This is a bit hypothetical at the moment.

 

IF - having done all the homework from the great advice here, one was in a position to make a quick settlement offer - and one did not have a cheque book or a third party who could help out in that respect, what is the best way to pay the agreed settlement sum?

[dx100uk]

internet banking.

 

however

unless they will mark it SETTLED

remove ALL NEG markers

and

state they nor no-one will ever chase the debt again

 

you might as well burn the money!!

 

dx

[phoenix11]

Hi DX - yep - read that loud and clear on many threads and that, plus the blog, has been invaluable help as would never have thought just how devious the creditors could be.

 

Bit of a boo boo in my question tho - sorry about that - really, if the funds were available (and we got all the satisfactory conditions met), we're looking at how to pay it direct eg by going into a bank.

 

So, very basic bank account, no cheque book, no internet banking, no telephone banking, no trusted friends or relatives to send cheques etc.

 

As I'm thinking as I type, should we request a pro-forma thingie like you get with utitilities accounts etc with a tear off slip at the bottom, which is part of the letter which agrees the T&C's of a F&F settlement?

[Tingy]

Thinking aloud, for a small fee, I imagine a solicitor might write a cheque. Make sure no money is handed over until you have everything in writing. Alternatively, I don't know how postal orders are viewed in terms of F&F's.

[sequenci]

you might as well burn the money!!

 

 

They will still be debt-free, which I guess is kinda the solution people are looking for sir!

[victoria_siempre]

Hi gentleman (dx, Tingy and Seq)

 

There is an interesting creative tension here.

 

I lean toward dx’s view: all the legal crap implies that a debt exists although it might not be legally enforceable notwithstanding that enforcement activity is lawful short of unlawful activity.

 

I take Seq’s point that a F&F might be a resolution of sorts but only with the Mould’s caveats.

 

Why should I pay part of a demand rather than the whole; and why would they accept it?

 

X

 

v

[baz1986]

I have just done 3 full and final settlements and they were all payed by my debit card, the opertor who i payed it to did not ask any questions just took the details, i mean banking has come so far now that simply telling them it was transferred into you account.

 

Dx i have noticed you always say you may aswell burn the money, Well for me my goal was to get rid of the debt and achieved this, my credit file will be effected for 6 years proir to doing full and finals through other defaults, so whether they settle it as settled or partial settled makes no differance to me!! and saved paying 5k

[phoenix11]

I think DX raises good points tho which anyone who is hoping to achieve a settlement needs to consider ensuring they achieve as much as possible.

 

The removal of negative markers would be a great bonus, but may have to be forgone to achieve the end result of clearance of debt, but ensuring that the debt is marked as settled and will never be pursued again surely have to be unnegotiable terms.

 

If the creditor will not agree to them, then the inference is that they will at some point chance their luck and go for the debt again - or sell it on etc and that could be years down the line. Yes, it may be possible to challenge any claim and stop it going further - BUT - a) it's more hassle and trouble when you thought everything was finished and b) who knows how the law will change in a year or more?

 

For peace of mind, those two points have to be agreed - it's just not worth the risk IMHO.

[dx100uk]

I have just done 3 full and final settlements and they were all payed by my debit card, the opertor who i payed it to did not ask any questions just took the details, i mean banking has come so far now that simply telling them it was transferred into you account.

 

Dx i have noticed you always say you may aswell burn the money, Well for me my goal was to get rid of the debt and achieved this, my credit file will be effected for 6 years proir to doing full and finals through other defaults, so whether they settle it as settled or partial settled makes no differance to me!! and saved paying 5k

 

the problemhere is exactly what i'm eluding too

 

and sadly before cag

 

i wasted +£12k on various debts doing F&F.

 

are they gone nope still on my file and still stopping me getting credit

 

if you are going to let markers/partitial etc etc be there

 

then IMHO save the money and pay nowt....it will drop off by itself in 6yrs with the same result.

 

dx

[phoenix11]

The matter of not being able to get credit would, in this situation, be a good thing as it is best for some people that they cannot have this option. So if that is all the negative markers do, then we may have to settle for that.

 

Paying nothing is not an option either. Even if the creditors do not take the debt to court, there is still the distressing matter of someone having to deal with all the threats and hassle of the bombardment of letters etc. For some, it's more than just a nuisance, it can push them over the edge.

 

However, as I said, there has to be a written agreement that when the debt is settled, it is fully settled for good. I simply don't trust any financial institution anymore and without those agreements, they'd be back like a shot if they could to have another go.

[EveOwes]

the problemhere is exactly what i'm eluding too

 

and sadly before cag

 

i wasted +£12k on various debts doing F&F.

 

are they gone nope still on my file and still stopping me getting credit

 

if you are going to let markers/partitial etc etc be there

 

then IMHO save the money and pay nowt....it will drop off by itself in 6yrs with the same result.

 

dx

 

Hi dx

 

I was curious about what you said here. When they mark a debt as partially settled, it stays on your credit file - for six years presumably. But I thought that was normal anyway, or are you saying it stayed on longer?

 

If creditors mark the debt as partially settled, but write off the remainder - and put it in writing that it has been written off and will not be pursued - then won't it disappear off the CRA file after six years anyway???

 

Why can't creditors mark the file as "partial final settlement" - which surely must be a reasonable compromise?

 

Reason I'm asking is that (per my other post recently) I've been offered partial settlements with a written agreement not to chase the debt (and I will insist they write and say that the debt won't be chased by themselves or anyone else). I really doubt that I can get my creditors to change their mind about this so what are my options? The debt won't go away if I don't agree to the partial settlement/no chasing etc and I'll be paying debts off for the next 10+ years. It sounds to me like the best I'm going to get from the creditors.

 

Sorry dx, hope I don't sound thick but I'm confused - you and some others say F&F or no deal, yet others say to just be careful about wording and ensure debt can't be chased. I just think it's a good idea to clear debt providing it is cleared.

[victoria_siempre]

Hi Eve

 

I think you're partially answering your own question; a partial F&F doesn't 'clear' a debt but might remove an adverse marker after 6 years if you trust the party to whom you made payment or your written agreement is legally binding: not paying them would similarly remove the mark after six.

 

 

x

 

v