Full and Final Settlement Question

[sups88]

If I was to make a full and final settlement offer,

should I state in the letter that once the amount is paid I expect that the account be marked as satisfied in the credit report

and get them to agree to this before I make the payment.

 

This is just theoretical at the moment as building up knowledge before actually doing it.

 

If my credit report is then marked as satisfied against this default, will it still affect me negatively if I apply for credit?

[renegadeimp]

A F&F needs to be carefully and specifically worded.

 

One condition i always advise is that the account must be marked settled/satisfied and not part settled. You must get confirmation in writing before you part with a single penny.

 

Always check the validity of the debt, such as if the company chasing you holds a valid CCA. If they dont, or the debt has been sold on to a DCA, you must question why, and check the debt in full. If the debt is full of charges/PPI, you can reclaim those at the interest rate you were charged. Sometimes, this is enough to wipe out the debt completely.

 

If the company holds no valid CCA, then you can offer a really low F&F, such as 10% of the amount owing. You have much more leverage this way, as no CCA means no court enforcement.

[sups88]

Excellent, exactly what I thought thank you. I am planning on sending the CCA request out tonight to the three debt managment companies even though these are only in the 200 pound region I would like to make sure I have to pay it first.

 

If no CCA I will offer a very low percantage but I assume still request they mark the account as fully settled?

[renegadeimp]

Can you give us some info on your debts and the DCA's that hold them? We could help advise on the best course of action.

 

You are also correct in your last statement.

[sups88]

The three with DCA's are below according to Noddle:

 

CL Finance = 134

Idem Servicing = 252

Lowell = 179

 

Thanks

[renegadeimp]

Ok. Can you give us some background on the debts? Since they have been sold on, you need to find out why, and if there are any charges/insurances you can reclaim on them.

 

As i said earlier; before you go offering F&F's, get the full facts on your debts. Trust me when i say you will be in a MUCH stronger position if you do.

[sups88]

Sure, CL Finance and Idem Servicing are Credit Card debts where as Lowell mentions that it is a Current Account on Noddle.

 

As I mentioned before I assume I should CAR these three tonight? Anything else I should do with regards to fees?

[renegadeimp]

CCA the Credit card debts, and SAR the OC's. Do NOT sar the DCA's.

They wont hold the information you need.

 

Only Sar if you think there are charges and Insurances on the account, or you think the entire debt is made of charges.

If you know the debt is legit and you owe it, CCA the DCA. If they dont hold the CCA, then a very small F&F can be made.

[sups88]

Hi renegadeimp, very quick question.

 

What should I do with Lowells?

 

It mentions on Noddle that it is a current account and the debt is 179.

I don't really recognise this one and don't have a reference or account number for it as most is blanked out by the usual *******.

 

I guess I cannot CAR it as it isn't credit related due to it being a current account.

What steps should I take to gain information about this one?

[renegadeimp]

Send lowells a prove it letter if they are chasing you. If the prove it letter reply is genuine, CCA them

[yorky28]

HI,

if you contact the DCA relating to the current account and mark it as a complaint they will have 8 weeks in total

to provide a satisfactory outcome for you, at which point you can escalate matters to the FOS.

 

Also, for such a small outstanding debt you are likely to have the whole balance cleared.

 

With a full and final, they are not forced to mark as satisfied, only partial, which will remain on your cred report for 6 years.

 

Entirely up to you but, from my experience, simply disputing the debt can take months to resolve, even for such a small balance.

[dx100uk]

not so

 

dca's can and do remove markers and mark settled.

make it a strict condition of the settlement

 

dx

[yorky28]

you're right dx in that they can and do mark as settled but Lowell (and poss other dca's) are not forced to

as they are at liberty to report factual information.

 

In this case, in view of the balance size, pushing down the complaint route, marking fao head of compliance

(i'd insist on a personalised response but that's just my opinion to make life harder !) the balance will more than likely be written off.

 

There's no harm in reiterating the need to have the cred file satisfied but it can lead to them digging their heels in and stating that agreeing to partial settlement is sufficient. I'm all for having your cake and eating it as well (who wouldn't) but at least allows food for thought.

[dx100uk]

there is no point in settling a debt if it ends in a partial settlement - a waste of money.

does NOTHING for you credit rating at all.

 

use it where more effect can be gathered.

 

you must demand and get in writing first

that whomever you F&F will remove all markers & mark settled.

 

a settled account will still show defaulted and thus kill you file

if you do not get the neg markers removed.

 

most people do F&F offers to try and clear a poor credit file

say for a future mortgage.

although for say a single remaining default like mobile gadget default

some mortgage companies are allowing one.

 

if the above is not followed, you've wasted your money!.

 

also remember that if the debt is already defaulted

no matter what you do or don't

the whole account will vanish on the 6th birthday of the original default.

 

dx