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Full and Final Settlements Remortgage


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I'm just about to remortgage to pay off around 80K of unsecured debt. Some 70K or so is in a DMP with PayPlan and 8.5K on a CCJ paid direct. Pretty much all is defaulted 2 and a bit years ago when I went into the DMP.

 

Now obviously I want to offer Full and Final Settlements at a discount to my creditors - I've already had a few write and offer this.

 

I have 2 decisions in principal for remortgages, one from PayPlan's in house mortgage service and another from an IFA. Both are pretty much identical in terms of product (light adverse credit 3 yr fixes actually at a lower rate than my current supposedly "prime" mortgage....) now I have 2 options:

 

(a) Go with PayPlan who will negotiate F&Fs with my creditors on my behalf

 

(b) Go with the IFA and negotiate F&Fs myself

 

Has anyone done this/have any advice on which of these is likely to get me the best discounts?

 

I'm pretty much sold on the remortgage BTW...I've loads of equity and an IVA wouldn't really make any sense and at least one creditor seems to have a charging order in mind..

 

Any advice appreciated.

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The amount that will be accepted as full and finals really depends on your personal circumstances and the account history. First thing to note is acceptance must always be in writing of your full and final so that there is no comeback. The second thing is that you have more of an interest in negotiating a lower full and final than any company, as it is your money that is involved. You ultimately have to weigh up whether you want the hassle of negotiating or leave it to a third party.

 

How low have been your reduced payments and how long have you been making them? Have any of the debts been sold to DCA's? Have you sent any of your creditors a CCA request to see if they have an enforceable copy of the credit agreement? Are there any charges on the accounts that would reduce the balance before offering a full and final?

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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Thanks Rory

 

Reduced payments are about a third the original payments (420 a month on the approx 70K) paid for around 2 years now.

 

I have started to send a few CCAs after a "run in" with Bryan Carter and one of his partial CCJ attempts (they discontinued after I defended) on an Egg loan

 

There could be some charges on the credit cards (make up around 25K) but I guess it depends how much of a discount I get to see if it is worth chasing.

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If there is no credit agreement or it isn't enforceable then you are really looking at a very low full and final, say between 10 and 20%, in return for removing any default/adverse credit history and marking the account as fully settled.

 

Even if they do have a copy of the agreement that is enforceable as you have been on fairly reduced payments for a long time they will like the idea of a cash lump sum. Remember to start low making them the most insulting offer that you can and then slowly work upwards. You may end up making a deal as low as 50-60% or even lower if you stand your ground.

 

Although if you go through a third party probably the lowest you will get is 70-80%.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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OK..that's very helpful...Will I need to show each creditor what offers I am making to the other creditors so they know they are "fair" and pro-rata? I have a feeling that some will, as you suggest, settle on the 50%-60% side and even less if there is no CCA and it might be easier to treat them individually without knowing what I'm offering the others...

 

The bigger loans (and I have one as large as 22.5K) might smell equity and posture about Charging Orders so I'm not sure I am in as strong a position with them as I do have a lot of equity.

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The bigger loans (and I have one as large as 22.5K) might smell equity and posture about Charging Orders so I'm not sure I am in as strong a position with them as I do have a lot of equity.

That's why you need to know if there is an enforceable copy of the agreement.

 

Will I need to show each creditor what offers I am making to the other creditors so they know they are "fair" and pro-rata?

In an ideal world you would. Personally though I would treat them individually as different creditors vary so much on what they are willing to accept.

HAVE YOU BEEN TREATED UNFAIRLY BY CREDITORS OR DCA's?

 

BEWARE OF CLAIMS MANAGEMENT COMPANIES OFFERING TO WRITE OFF YOUR DEBTS.

 

 

Please note opinions given by rory32 are offered informally as a lay-person in good faith based on personal experience. For legal advice, you must always consult a registered and insured lawyer.

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