partial settlement v full and final

[horsemad1]

Have you got a copy of your CCA? Do you know if this agreement is enforceable? If it isn't tell them it will be £1150 or nothing and Make it a condition of your settlement that you will only pay this amount if they mark your credit files as fully satisfied.

[horsemad1]

They will always say this, don't know who they would have to pay the £3k to though, more likely they are writing the balance off and so essentially thats £3k they've lost.

 

Have you checked that your agreement is enforceable? If not, you have more bargaining power then. You can tell them that you will only pay the money providing, they mark your credit file as settled in full and remove any adverse data, or they will get nothing. Make sure they confrim it in writing, so if your balance does get sold on to a DCA you can prove it was accepeted as part of a F & F.

[citizenB]

Hmmm, partial settlements. Although you have it in writing that they wont pursue for the balance so as far as Nationwide is concerned that should protect you.

 

However, you should make it clear to others that you want it in writing, confirmation, that they will neither pursue you themselves or sell the balance on to a third party agency to collect either.

[dx100uk]

it always gets me worried why OC accept F&F.

 

typically this means there is something wrong with the agreement, mis-sold PPI, unlawful charges etc etc.

 

pers i's sar them and find out what they are hiding.

 

if you do feel inclined to do it though, it must be a condition that they remove all negative markers on the a/c and mark it settled.

 

if they will not do that FIRST then offer them £1PCM for the rest of your life.

 

dx

[pumpytums]

Hi rennuz,

it has to be full & final or nothing. You could pay off your £1k and then they will probably sell the rest on to a debt collection agency. Be very careful otherwise you could end up with a default, a DCA chasing you and £1k down for nothing.

 

Did the initial F&F offer come from MBN@ was it a 35% one?

 

As Horsemad has said have you got a copy of your CCA? I wouldn't bother with an SAR until they sell it on, which they always do.

 

Rule of thumb never believe MBN@ especially on the phone, even in writing is it signed or just MBN@ in a fancy font.

 

 

Pumpytums

[rennuz]

Got my SAR and all seems in order, the loan is over the £25k so is not governed by the consumer credit act. Also it was part of a mortgage it was a together mortgage.

 

Irony is they have been real hard arses about this and have refused to stop interest and all sorts, their take on it was that they will accept lower payments now and I can increase payments later, so really they are not actually giving me a choice but to settle early.

 

But yes have made sure they put full and final in all the letters and wipe any bad credit although its not got to the default stage as yet.

[rennuz]

I will call again today and try and sort out a full and final but the guy was pretty adamant that they have never done that before..... and rei-iterated that they cannot cancel off £3k which is what they would have to do as a full and final instead of a partial.

 

They have also just sent me a letter about registering a default in the next 28 days. If this is not sorted out before then can they withdraw a default after it has been added on or should I try sort this out before hand. I feel its worth doing to stop the default.

 

With regards to the CCA and subject access request, I just think its too much time and hassle to go down that road and if I can get it sorted without that then time wise that might be easier for me.

[dx100uk]

that sounds very strange to me indeed

 

i cant for the life of me see why a secured loan of over £25 would be allowed to be settled for £7K make no financial sense..

or am i getting this wrong and they've not accepted £7k?

 

something odd here.

 

dx

[UnmoderatetheNet]

The problem is credit file 'settled', thats the problem.

 

I know its not what you want to hear and I would never advocate avoiding debt but what is the point of offering F&F if your credit files is still gonna be screwed.

 

If you are leaving the country there is even less reason to do this.

 

Unless rules are put in place f&f is always going to be a pointless exercise.

 

Its a crazy situation you make the effort to deal with your debts in most cases offer a F&F more than the DCA bought the debt for in the first place and your credit file still shows this payment as partial.

 

I know that OC's would rather cut off there own leg than alter your credit file but it hardly encourages people to offer to clear there debts.

 

Until things change with regards f&f or you get written confirmation from the CEO taking personal reponsabilty, i would think very carefullyr risk getting another letter from a DCA some where down the line for the remaining balance.

[pumpytums]

Be very careful Rennuz,

if they agree you must get it in writing. Also be careful you need them to say the outstanding will not be collected or passed to another party.

 

I know you want to sort this but you could be throwing £1k away.

 

Until it's in writing don't pay anything,verbal agreements mean nothing. Don't let them pressurise you.

 

A F&F is the only 99.99% way in writing.

 

Pumpytums

[dx100uk]

yep

at the end of the day if any OC [in written confirmation] will not [first] wipe ALL negative data from your CRA file AND mark the debt as SETTLED, then NO DICE

 

tell them they will get £1 PCM for the rest of your life...like it or lump it!

 

 

oh and i like the garbage from MBNA about the FOS...what they hell is it to do with them!!

 

muppets

dx

[UnmoderatetheNet]

....but by that point you've paid the money and only have a piece of paper to show for it if you are lucky, what are you're options now?

 

We need to post a game plan from there on to include to letter templates and advice for those who have paid the money and been left with promises.

[citizenB]

 

 

oh and i like the garbage from MBNA about the FOS...what they hell is it to do with them!!

 

muppets

dx

 

Good point, I didnt quite understand how the FOS would be interested in this either ?

[rennuz]

Odd in what way? are you saying they should not be accepting my offer? If you are saying its odd to accept £7k for a £30k loan then I would say there are plenty of examples on here of lenders accepting low payments to recover something as oppossed to nothing. I have in all fairness paid £14k back over the last 5 yrs, so with this back they are nearly getting the whole lot back. I did remind them of that in the letter.

 

I suppose I have got to decide whether to pay £7k and have it off my back or go for the SAR etc etc and try for that but think I honestly have not got a leg to stand on with all that. Shall I pay £7k or be cheeky and try and pay less....... thats really my conundrum.

[rennuz]

OK Egg are playing hard ball they have said pay 75%, or I can go back to them with an offer. After lots of to and fro on the phone they have said it needs to be at least 50% i.e £2k, too much I feel. Am I being unrealistic what do I need to do say to try and get this reduced with Egg? Has anyone else had full and final settlements with Egg agreed?

[dx100uk]

sounds more sensible.

so you're offering £7k on a £14k loan

 

have they bitten it?

 

dx

[rennuz]

Ok, to be really clear, I have an outstanding loan of £30k £32k with interest and they are accepting £7k to clear it.

 

Is this odd as its 23% of the loan, shall I bite their hands off.......

 

Egg will not accept £1000 for a £4080 credit card. they want at least £3k, I need to meet them in the middle. anyone had any luck with Egg on a final settlement?

[dx100uk]

well done then

as in post 2 if they comply, then 10/10 for you, very rare that.

 

as for egg

wellthats egg, about as good with customers as HFC/MBNA

 

have you got late fees/over limit fess or PPI on the card?

hit 'em with reclaiming them first!

 

dx

[rennuz]

OK great will get it paid then, I do have everything in writing so seems like a done deal once its paid.

 

MBNA have not been too bad I am trying to negotiate from £1400 for a £4200 debt, I am offering nearer £1100 and hope they will tie that off today but will only do a partial and not a full and final. Egg and Barclays loans are proving the hardest so I suppose I will just have to keep bugging them and see if they comply....

[dx100uk]

just remember that 'partial settlement' is as good as having default written on your CRA file

so don't waste money on those that will not mark the debt settled.

 

dx

[rennuz]

OK MBNA have said they will accept £1k for partial payment. The fella said they would only send out an email and not a letter, they have no facility to send out a letter to me????? ridiculous, it was as though he was doing me a favour by sending me this email and in all his service he has never had to send out a letter. What a Tw&t he was anyway should I accept an email. Also he has said it will not be a full and final settlement.

 

I think I will give this one a wide birth I do not want to have them come back on this.

[pumpytums]

I personally think you are 100% correct.

 

There is only one reason not to put it in writing. Not that I would ever accuse a Huge financial company of such things.

 

At the end of the day what a deal to send out a letter with a stamp and get £1k+ back.

 

These people say anything to anyone to get anything, I had one oddly from MBN@ saying that I should borrow against my house to pay them. Strangely I suddenly seemed to receive phone calls and letters from a consolidation company.

 

Pumpytums

[Brigadier 1JCS]

Is it not against OFT guidance to encourage a debtor to take further borrowing to clear a debt sect.2.6b I think report it!!

[rennuz]

Not great practice from them, after being as diplomatic as I could and posing the question in really as nice a way as I could and reminding the fella that I just want to pay them the money back without them coming after me further down the line, he didnt relent on that initial phone call but has since rang me back and said he has managed to find an envelope and is now able to print off the letter. It made out that he was doing me a huge favour, well I suppose he is £1k is not bad for £4k. Well I will await the letter and see how that goes.

[rennuz]

Yes they have confirmed its a full and final so happy days.