Full and final settlement - payment method

[pure*destiny]

I have a debt which I want to make a full and final settlement on.

 

The thing I am concerned with is the payment method. I don't have a relative who trusts the DCA's enough to make payment on my behalf, so how is the safest way to pay?

 

I have no clue.

 

Thanks

[twofoot]

Very dodgy stuff. Hope you know what you are doing. Personally I would never ever pay a DCA.

[pure*destiny]

Very dodgy stuff. Hope you know what you are doing. Personally I would never ever pay a DCA.

 

Um, I have no idea what I'm doing actually. How should I pay this then? Could I offer it to the original creditor instead and bypass the collector? It has only just been passed over.

[Bandit127]

I read stacks of posts every day so I am sorry but I have no chance of digging out the reference for the following...

 

But I did read somewhere that if you can get a third party to pay a F&F settlement it carries more weight.

 

A cheque would be my weapon. With "Payment in Full and Final Settlement of Account XYZ" written on the back. Scanned and archived for your own records...

 

EDIT - see Brigs post #6. And apologies for the bum steer...

Edited October 30, 2012 by Bandit127

[Bandit127]

Um, I have no idea what I'm doing actually. How should I pay this then? Could I offer it to the original creditor instead and bypass the collector? It has only just been passed over.

See my post above. And read and understand the following information.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

[BRIGADIER2JCS]

Third party F&F payments are fraught with problems and have to be very carefully carried out, sending a 3rd party cheque for payment without haveing explicit agreement that the terms of the F&F have been accepted by the creditor, can lead to the money being credited to the account literally as a gift and the pursuit of the balance continues as normal.

 

UNLESS YOU HAVE THE CREDITORS EXPLICIT ACCEPTANCE OF THE OFFER IN WRITTING DO NOT SEND ANY PAYMENT, advice to do otherwise will cost deasrly.

[pure*destiny]

Third party F&F payments are fraught with problems and have to be very carefully carried out, sending a 3rd party cheque for payment without haveing explicit agreement that the terms of the F&F have been accepted by the creditor, can lead to the money being credited to the account literally as a gift and the pursuit of the balance continues as normal.

 

UNLESS YOU HAVE THE CREDITORS EXPLICIT ACCEPTANCE OF THE OFFER IN WRITTING DO NOT SEND ANY PAYMENT, advice to do otherwise will cost deasrly.

 

No, I will not be sending any payment without express written agreement. I have drafted the letter based on the National Debtline Template and will await written acceptance before anything.

 

So, if I get the written acceptance to my terms, will this be sufficient to safeguard me?

 

The outstanding amount is only £497 and I'm going to offer £250. If they really do do a dirty, at least it's not thousands.

[BRIGADIER2JCS]

Never just send a cheque marked '' in full and final settlement'' agreement MUST be two way and made in wriiting acknowleding the terms of the settlement being binding on both parties, it is the sequre.

[twofoot]

It is not just a case of money involved. You are also resetting the SB debt and you are also acknowledging the debt. You need it in writing that it is F&F and that the account will not be passed on. You also need to know that they own the debt, many don't. It can be a minefield if you get it wrong. I'd suggest you are a long way from writing a cheque on this one. Furthermore I doubt your CRA file will improve, especially if it's marked 'partially settled' so you will be stuck with a poor CRA file. Any particular reason you want to settle it?

[BRIGADIER2JCS]

It matters no who ownes the debt, as long as the acceptance of the terms of the offer are accepted i writting.

 

This why the terms must be confirmed.

 

No F & F will drastically improve rating unless all adverse date is remove.

[pure*destiny]

Thanks for your repsonses. I would like to clarify that this debt has not been recorded on my credit file at all. I want to settle it so that it never does. The settlement I will be offering is just in the hope that I can save a couple of hundred off the balance, but I am prepared to pay the full amount if I absolutely have to. My credit file matters more right now.

 

So, in essence, if they do pull a fast one it doesn't make that much difference other than I will have to pay the full balance. But, I would like to avoid it if I possibly can.

 

I've probably answered my own question in this response actually.

 

If it doesn't matter, I should just send a letter based on the National Debtline template and get their acceptance in writing, then just pay by cheque with the F&F declaration on the back.

 

If I pay by cheque, I will have to sign it though and I don't really want them to have my signature. Would bank transfer work just as well if I have the written confirmation?

Edited October 31, 2012 by pure*destiny

[BRIGADIER2JCS]

Yes.

[pure*destiny]

Yes.

 

Cheers Brig. As always, you're a star. xx

[BRIGADIER2JCS]

What sort of debt is this there are some tyoes that don't get reported to the CRAs?

[pure*destiny]

It's a utility bill.

 

The DCA has mentioned court action, but nothing about it affecting my credit report. This is from 2006-2007.

 

Although the debt is old, I have been informed by the suppliers that I still owe this. I lived at the property during the supply dates and then moved out without telling them my address as I thought it was paid already.

 

I recently put myself on the Electoral Roll and the DCA contacted me.

Edited October 31, 2012 by pure*destiny

[pure*destiny]

Here is the email I have just recieved from the DCA:

 

---------------------

 

I write with regards to your recent communication concerning your aforementioned accounts.

 

Whilst our client is prepared to accept a settlement on this account, the minimum they require is 65% of the balance on each of the accounts listed above. We are prepared to accept £320.00 on account reference number --- and £19.00 on account reference number ---. Total one off payment for both accounts we can accept is £339.00 as full and final settlement.

 

If this is acceptable to you please send your remittance directly to this office within seven days, quoting the reference number detailed above.

 

-----------------------

 

This was sent by email. Is this acceptable or should I get them to send this by letter?

 

Also, they did not mention anything about this not affecting my credit report, which I did state as my terms of settlement. Should I clarify this also?

 

Thanks in advance.

[BRIGADIER2JCS]

OK so this is not showing on CRA files, so it may be that a default was placed by the supplier and has now been removed as 6 years has elapsed.

 

If there has been no payment or written acknowledgment of the debt in 6 clear years you have no need to offer anything as the debt is statute barred and cannot be enforced.

 

Any money you do pay will just be a gift to a sly debt collector, it cannot go back on your credit filed so I am going to pm you a letter to send to the DCA.

[pure*destiny]

OK so this is not showing on CRA files, so it may be that a default was placed by the supplier and has now been removed as 6 years has elapsed.

 

If there has been no payment or written acknowledgment of the debt in 6 clear years you have no need to offer anything as the debt is statute barred and cannot be enforced.

 

Any money you do pay will just be a gift to a sly debt collector, it cannot go back on your credit filed so I am going to pm you a letter to send to the DCA.

 

Okay. Thanks. I appreciate it.

[pure*destiny]

I've just double checked my credit reports and there is no sign of this dating back to 2006. I don't think they've ever pursued this until now. Also, the supply dates were from 26/07/2006 - 03/07/2007 so the 6 years isn't up until next year.

 

If they haven't pursued this until now, can they now take action in court? Also, have I already acknowledged the debt by making an offer of settlement?

[BRIGADIER2JCS]

Check your in box.!!

[BRIGADIER2JCS]

I've just double checked my credit reports and there is no sign of this dating back to 2006. I don't think they've ever pursued this until now. Also, the supply dates were from 26/07/2006 - 03/07/2007 so the 6 years isn't up until next year.

 

If they haven't pursued this until now, can they now take action in court? Also, have I already acknowledged the debt by making an offer of settlement?

No the can't take actio in court or replace an entry on your credit files, the supply date would not matter it's the date the default was placed which must be more than 6 years ago as it's not on file back to 2006, so the date of the cause of action must be prior to the default date.

 

Send th PMd letter as is, my guess is that the ''offer'' they would accept is pure greed hoping you are unaware of the Limitations Act .

 

The letter will not start the SB clock again.

[pure*destiny]

UPDATE:

 

I have been communicating with BRIGADIER2JCS through private messaging and thankfully he has helped me to avoid a very sticky spot with this settlement.

 

In short, the settlement offer was retracted because the DCA finally disclosed that a default had already been applied to my credit report. The default is not showing on any of my reports, so it does appear that it has fallen off already. I only wanted to make a settlement to avoid a default.

 

Based on this new information, it became obvious that they were simply trying to get some money from me so that they could mark the default as settled and restart the 6 year time bomb again.

 

I have now sent them a final notice of non-acknowledgement and will seize contact.

 

I have realised from this experience that these DCA's are very sneaky and will say anything to get you to pay up. British Gas were less than helpful and I have lost complete faith in them.

 

To anyone else who is experiencing a similar problem, seek advice from those helpful advisors on this forum. Without their assistance, I would have inadvertently started another 6 year clock by just trying to do the right thing. Go figure.

 

Just to sum it off. I recieved news today that my CCJ has been removed - a week early at that. I also managed to upgrade my basic account with Lloyds to a FULL current account. Things are looking up and I owe much of it to everyone on here. So thanks to all of you.

[intend]

Congrats and well done - the Brig is indeed a star.

[twofoot]

Now you know, and so does everyone else, that F&F settlements can be a minefield. Even more so if a DCA is involved.

[pure*destiny]

Now you know, and so does everyone else, that F&F settlements can be a minefield. Even more so if a DCA is involved.

 

Couldn't agree more.

 

You think you are doing the right thing by taking responsibility, but really you are shooting yourself in the foot - and the head.

 

I can't believe how close I got to messing everything up. Thanks Brig...